house sale collapses, does mortgage advisor get paid?

briggers_3

Hi everyone, I found out yesterday that the vendor is pulling out of the sale of a house I was buying (proposed moving date was in just two weeks away). I haven't heard why yet but it looks like personal reasons/family issues.

Anyway, I'm gutted but OH and I have decided that we don't have the time to scramble around in desperation for something else, we are going to rent/commute and wait til next year now. We reckon we could gather more money together for bigger deposit too.

My question is about the mortgage that my mortgage advisor has been arranging. Well, I say "mortgage advisor" but she is also a close family friend and I feel she has worked hard on my mortgage.
Does she still get a fee even though the vendor has pulled out and there will be no mortgage (at least not for a good few months)? If not, should I give her something? Any mortgage advisors out there; how do you feel when deals go belly-up?

Thanks, all help appreciated

Thrugelmir

Have you exchanged contracts?

Being in business has both risks and rewards. If the transaction doesn't complete, then there's no commission paid.

steve1980

Simple answer, no. Some fees are small from the lenders, the real money is in the insurance!

dunstonh

Is the adviser working on fee basis or commission basis?

What does their terms of business say?

briggers_3

Thank you all very much for taking the time to reply. I'm still feeling really blue about the collapse of the deal - I had been really looking forward to moving in to the new house - it was also really close to my job so an end to the commute was in sight. Ah well, c'est la vie!

Anyway, I don't have my paperwork with me at the moment so I can't check the terms of the mortgage-advisor's payment. I remember seeing a figure around the £500 mark, included in the mortgage price. I understood this was a fee, not commission, but I could be wrong there.
No, we hadn't exchanged contracts yet.

Thanks again for your replies.

sophievenusdoom

briggers wrote: »

Hi everyone, I found out yesterday that the vendor is pulling out of the sale of a house I was buying (proposed moving date was in just two weeks away). I haven't heard why yet but it looks like personal reasons/family issues.

Anyway, I'm gutted but OH and I have decided that we don't have the time to scramble around in desperation for something else, we are going to rent/commute and wait til next year now. We reckon we could gather more money together for bigger deposit too.

My question is about the mortgage that my mortgage advisor has been arranging. Well, I say "mortgage advisor" but she is also a close family friend and I feel she has worked hard on my mortgage.
Does she still get a fee even though the vendor has pulled out and there will be no mortgage (at least not for a good few months)? If not, should I give her something? Any mortgage advisors out there; how do you feel when deals go belly-up?

Thanks, all help appreciated

Nope, sadly when things go belly up, mortgage advisers do not get paid. The lender would not pay them for selling a product that was not incepted. Giving her a gift is completely up to you; it might be a nice gesture, but then if you are going to be taking a mortgage up through her next year, she will be paid then :T