IFA unable to book mortgage?

money_saving_novice_6

Hi all,

I'm currently in the process of purchasing a shared ownership new build and opted to use the recommended IFA to source my mortgage. They did the initial affordability assessment (required by the housing association) and then came up with a Woolwich mortgage (15% deposit, 3 year fixed @ 6.39%), which they said they could apply for once I filled out all their paperwork. I did the paperwork and provided credit card details for the fees (£450 for the IFA, of which £200 is payable on application).

Now, the issue is that the IFA is now saying that they are having problems booking funds with Woolwich. I've done some digging and it looks like this is a problem a few IFA's are experiencing (see article ""Ludicrous" Woolwich booking system unfair to IFAs" article on FTAdviser.com)

The IFA has advised that we wait until mid-week and if still no luck then he'll look at other lenders. He's also advised that I tell my solicitors to hold their work as another lender may require me to use their solicitor. This is another issue as I have already paid my solicitor part of their fee upfront and I also don't want to mess them around. On top of this any delays could jeopardise my entire purchase

The advice I need is what my options are if the IFA tells me that he cannot get the Woolwich mortgage and suggests another product that I am not happy with (e.g has a higher rate, requires a greater deposit etc). Am I still obliged to pay him his fee? Or can I decline to use his services and either go to Woolwich (or another lender) direct.

Any advice will be much appreciated.

Thanks,

Worried first time buyer

dunstonh

Am I still obliged to pay him his fee?

Depends on his fee agreement. Usually you would expect some level of fee, albeit not the full amount.

money_saving_novice_6

dunstonh wrote: »

Depends on his fee agreement. Usually you would expect some level of fee, albeit not the full amount.

From what I can tell, the fee agreement states I pay the fee on application for the mortgage.

Tbh I'd be more than happy to pay for the work the IFA has done to date, but just don't want to be stuck paying the full £450 when I haven't got the service.

Hopefully this will all work out.

herbiesjp

He needs to find out what time he is able to start calling the reservation line.

He needs to call as soon as it opens, the funds go sooooooooo quickly - but he should know that really.

To be honest, I if have rates that are close to the Woolwich deal I would always recommend the other deal as Woolwich service is poor, even after you have manged to book the funds!!!!