mortgage broker issues-where do I stand legally?

a1pacino

Hi everyone,
I recently had an offer on a property accepted, I was going to use the mortgage broker in the estate agents I found the property in but the mortgage offer he originally said he could get me changed when I went back to sign for the valuation to one which required a higher deposit and this would have pushed me right to the breadline making things very difficult for me financially, anyway while I was there I signed for the valuation and the other documents thinking I could possibly manage it but on reflection I realised that it would too hard for me. Anyway when I got home I rang around and found that I can get a better deal going direct with a bank, when I phoned the mortgage broker to inform him that I wont be getting my mortgage,valuation,etc through him he was clearly irritated and said he is going to recommend that the house i have had an offer accepted on is taken off the market-is this legal? and where do I stand on the fact that I signed those documents-is there a cooling off period?the valuation has not been carried out yet I informed them in advance of that so no money has left my account yet. He has not said anything about not being able to cancel the valuation,mortgage etc but I would like to know my rights just in case he decides to try and play dirty, I understand he is upset but I have to try and get the best deal for myself.

Many thanks in advance

dunstonh

said he is going to recommend that the house i have had an offer accepted on is taken off the market-is this legal?

No he cant do that and it is may possibly unlawful but it is definitely a breach of FSA guidelines (specifically TCF) and would result in an upheld complaint.

Never ever ever ever use an estate agent adviser. Their reputation is the worst.

nd where do I stand on the fact that I signed those documents-is there a cooling off period?

You are not committed until you sign the contracts. However, the broker is allowed to charge a certain amount for work done so far as long as it states that they can in their key facts about their services document. Some of the lender fees may not be refundable either.

Whatever the outcome, this guy is an idiot and a disgrace. You should complain to his compliance department (the complaints address is on the key facts about their services document). He should not be allowed to continue like that.

a1pacino

Thanks so much for your quick reply, also the estate agent is not taking and returning my calls, should I contact FSA now or wait to see what happens?

redpete

a1pacino wrote: »

Thanks so much for your quick reply, also the estate agent is not taking and returning my calls, should I contact FSA now or wait to see what happens?

I would contact them straight away, otherwise the eatate agent might try to claim that the sale fell through normally and you are just looking for a scapegoat.

a1pacino

I have contacted FSA and they are going to call me back within 72 hours, thanks again and if you have any other advice you think I might find useful please feel free to share it with me it would be much appreciated, as a FTB I'm finding this all a bit daunting!

happybroker

I would go into the estate agent if I were you and hand them written confirmation that you are still proceeding and outlining your complaint. Make a note of who you give this to.
Can you imagine if you were the vendor and found out about this? Some EA's, not all, need to be ashamed of themselves.

a1pacino

its a reposession house otherwise I would let the vendor know whats going on, I have sent an email to the estate agent and mortgage broker do you think this will be sufficient or will it be better to do it in person?

Conrad

The broker is likely part of a network which should show on thier business card. The netwrok may well have a compliance officer who will sort this as they will not want the FSA involved for a second. This should be simple to sort, all the best

a1pacino

thanks for your reply Conrad,when you say network do you mean the company he works for? if not do you know how i would go about finding this out as it is not on his business card or key facts sheets and I am still being ignored by estate agent

happybroker

He should have told if he was an appointed representative of a network right at the very outset and this will be confirmed in his Initial Disclosure Document. (IDD)

The IDD will also give you contact details should you need to make a complaint, make the call....this sort of behaviour is unacceptable

herbiesjp

If he has sent you any emails, his signature should state if he is an "appointed representative" of a mortgage network, or if he is directly authorised by the FSA.