First rate home finance 1.95%

Mum7

Hi

Last week was searching on a comparrison website for different mortgage products,
After outting my details in a pop up appeared saying a mortgage advisor would phone me to arrange a chat??
So a man rang and said he would send one of his team out and it was a free service as they got fee off lender!
I agreed to the service as it was free and would help me maybe choose the best product for me.

The man came round tonight from 9pm - 10pm and was nice but very very questioning - I was after mortgage advice but he seemed more interested in every aspect of our financial life!!!

He left after me an my Husband had told him all our info and agreed to return next week to go through our options. He had us sign a credit check form.

He made some comment about leaving a booklet of info - but not many people bother with small print!!!

So I read the small print and found a statement that says "A fee of 1.95%of the loan amount payable on completion up to a maximum of £3000. WE will also be paid commision from the lender"

I have looked at their website which says " We normally charge a fee for mortgage advice, however this will be dependent on your circumstances. Our typical fee is 1.95% of the loan amount"

I feel a little fooled!! Why say it was free when it wasn't

No wonder he told me not to read the small print! And said any charges for redemption fee, arrangement fee etc will all just be included in the final estimate so you just know your monthly amount!!

Does he think I'm stupid!!

I have sent an E mail saying that as i have been misquoted a service I wish to cancel next appointment with immediate effect!!

So mad!! Is this normal practice??

GMS

It is anything but normal practice. Fees should be disclosed up front and an Initial disclosure Document (IDD) or Combined Initial Disclosure Document (CIDD) should be issued detailing the fees.

Personally I would do what you have done and tell them to stop. You need to make sure the small print does not contain any up front fees to the broker or you could be liable for these if you stop the application.

The issue you have is that the 'adviser' told you verbally there was no fee. Unfortunately, and wrongly, any complaint will be difficult to proceed with if the information was given verbally, especially if there is written documentation provided.

I would like to point out that these type of brokers are in the minority with 99% of us honest and genuinely working to get our clients the best deal possible.

Conrad

There are a number of these bucket shop salesy firms out there, and time and again the same complaints arise - that a supposed free service was anything but. I really would like you to report this to the FSA, because others WILL trust them to thier cost.

I can also guarantee they will sell oodles of insurance and other products, that's why so many questions are asked that are unrelated to the mortgage. Please complain for others sake. At least the firm will then be on the FSA's radar.