Mortgage Fee Rip Off

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Hi, I hope someone out there can help with some advice or suggestions. I recently applied for a for a mortgage through a mortgage adviser. The mortgage was approved pending the survey. Exactly a week later I saw a much cheaper rate online with another provider and contacted the mortgage adviser to let him know. As the rate was only available through the branch he said I would have to apply directly. I went to the branch the next day which was a Saturday and applied. On the Monday I was approved so I contacted the adviser to request that he cancel the first application. At no time did he advise me that the fees paid were NOT refundable.

Yesterday I realised that the fees were not refunded so I contacted the adviser. He did not seem aware that the fees were non-refundable so he said he would contact the lender. He called back to confirm what I had feared. I have tried contacting the lender but was told that I would have to go through the adviser so I have basically hit a brick wall. I am now out of pocket close to £1000.00 and I don't seem to have any way of getting any of it back.

I don't mind if I am charged for work done but to be charged the whole fee is extremely unfair. If anyone has any advise, I would be glad to hear it.

_Andy_

What does the KFI state in the fees section?

VIGILANT22

I doubt if this is the advisers fee...it is more likely the application fee for the mortgage...

You will have been issued a quote from the adviser called a KFI...A list of fees will be on there.......

In most instances after application you're not entitled to exercise a right to cancel a mortgage contract.

Senior_Paper_Monitor

.... and if the advisers fee (on application is not unusual) is involved it will also be on the KFI.

VIGILANT22

The lender would not debit the advisers fee...

Senior_Paper_Monitor

.... and the borrower's liability for it would be declared on the KFI whether being collected by the lender or not (making clear which). Some lenders actual offer the ability to add the brokers's fee to the loan, collect it and pay via the conveyancing solicitor to the mortgage adviser/broker(I believe very rarely used - but may be wrong on this - and certainly we do not) but not payable until offer accepted (if my memory serves me correctly).

VIGILANT22

If solicitor is working on behalf of lender it would very unusual for them to accept a mandate from an adviser...as they say "I am not working for you"...anyhow in the OP's case the adviser was not aware (doh!) of non refundable fees!!..so I doubt they would be broker fees!!

Senior_Paper_Monitor

Vigilant: I agree fully with the second half of #7 but that was not your statement in #5.

With regard to the first half - the solicitor will do what the lender tells them and if the lender says send £250 to Mr Monitor's lot, they will. That this is going to happen will be in the KFI and offer.

I have not at any stage suggested that the solicitor will accept the mandate to do so direct from the broker - this is done by the lender having (where the lender is willing to do so) had the option selected by the broker as part of the application

PS: I can play Stella fuelled pendantic all night !

magpiecottage

You should have been given a document entitled "Key Facts About Our Services" when you met the adviser. That will tell you whether the fee is refundable or not.

Senior_Paper_Monitor

Returning to OP's original question .....

If its on the KFI - beit any of the costs applicable at that time that were non-refundable (I assume you were provided one - and would be flabergasted if you weren't) you are going to have to pay it - infact they have appear to have already received them based on your post - and the chances of you getting them refunded are slim.

The lender will make you stick to the terms laid out in the contract established at the time of the broker completing the application on yoru behalf (and certifying that he was instructed to do so). Your OP clearly indicates that you knew he was making the application.

Moral of the story .... read documents/contracts, they have a purpose



PS: Ms/Mr Magpie is absolutely correct - I just wanted to move away from the broker fee issue (which I am sure is not the case here) having corrected Ms (I believe) Vigilant's typically oversimplified response #5 (blame the Stella affect !)

VIGILANT22

Senior_Paper_Monitor wrote: »

Vigilant: I agree fully with the second half of #7 but that was not your statement in #5.

With regard to the first half - the solicitor will do what the lender tells them and if the lender says send £250 to Mr Monitor's lot, they will. That this is going to happen will be in the KFI and offer.

I have not at any stage suggested that the solicitor will accept the mandate to do so direct from the broker - this is done by the lender having (where the lender is willing to do so) had the option selected by the broker as part of the application

PS: I can play Stella fuelled pendantic all night !

Most solicitors are under prior instructions from lenders only to do work on their behalf...in days gone by solicitors may have been more co-operative but not now

I can't imagine any adviser in these days requesting a lender to pay a 1k fee on application

It would be most odd if the adviser didn't know about his fees...

and what's all this about pedantic!?....(no n....)...:)