Problem with Mortgage broker negotiating fee half way through

Gingergirl

Hi All
I wonder if there is anyone can offer some advice as I have come to a real prob with my broker?
We are first time buyers and found a house we like and could afford.
My new hubby was made bankrupt a few years ago and has started to build his business up again but wouldnt really be able to apply for a mortgage apparently. So we were advised it would be easier to do a buy half rent half. I found a mortgage broker in the phone book, met her and explained the circumstances. We paid of HP and Credit Cards, were accepted for the share scheme, had to wait while vendor made repairs, then he demanded more money which we couldnt do. He eventually came back and we started to proceed with the mortgage. Getting this and that. Have to prove my husband is 'financially independent' so I can pass their affordablity test (which he most definitely is). SO stressfull. We were waiting on his bank statements and she asked me for our joint statements as well as a letter from my employer. On Wed the MA sent me an email saying my mortgage had been declined because of my husbands low tax return. I couldn't understand cause they were still waiting on the bank statements from him. I was so upset! Gutted! As was hubby. I tried calling her but voice mail said she was at a conference so I left a message with my mob number. I then called the mortgage provider to see what was going on. Eventually I got speaking to someone who told me it wasn't declined in the sence of rejected, that it was declined waiting further info but also said they hadnt received all of my employment contract!!! He was lovely and explained it all. When she hadnt called me back by 930 the next morning, I called her office again- voicemail had changed so I left another message with my work number. I think about an hour later I called again. No answer. Called again half an hour later and then once more about 11.45. I was beginning to think she was avoiding me because she had been complaining about the amount of work she had to do for my application and saying if it didnt go through she would have to charge me a fee. I then decided to call what I though was the head office and ask them if they had another number for her but ended up blubbing down the phone to the girl that answered. When I came back from lunch I found an email saying she had been trying to get me and to call her. She was livid! How dare I etc. I tried to explain how upset I was and how I thought she was dumping me but she wouldnt accept my apologies or explaination. Now she is saying if we continue with her we have to pay her a £300 fee on top of her commision from the bank, shared scheme and for recomending a solicitor. Ive met her 3 times. Never spoken to her on the phone but emails back and forth. - sent her an email after our last meeting when she complained about amount of time just saying thank you etc but no reply which seemed odd. I am sick with worry, Ive to meet her on monday and tell her what Ive decided. I now feel like she is not working well for me at all, she has miscalculated things, she had the wrong number for me and Ive given it to her 3 times, left things out and seems to be taking advantage of my situation. I have 5 weeks to complete or the share scheme offer will expire (including extension time) which may b ok but there are xmas holidays to consider and if it is rejected can we not try somewhere else and what if she wont? What can I do? Is it my fault and we should just pay it? If not what else can I do? PLEASE HELP! Im desperate.

betmunch

She's taking the mic.

When she first met you she would have given you an IDD, an Initial Disclosure Document, this will outline the fee structure. You cant just change this half way though beccause you feel the client is a lot of work.

If I was you I would dig out all the paperwork she has given you and check where it says about her fees.

Gingergirl

Thanks, I did and it says they do not charge a fee..... thats why I feel she is taking advantage cause I know there was no fees. I also feel that if she had of just added ONE more line in the email to me saying we would be able to 'appeal' when we got the Husband's bank statements I wouldnt have been so worried and upset.
What is the best way to approach this? If I refused to pay her fee she will refuse to proceed with me OR just not bother 'fighting my corner'.

magpiecottage

You seem to have two options - you can simply liaise with the lender, find out what they need and get it to them or you can pay the fee.

If you do the latter, get a receipt for it, get into your home and then make a complaint that she insisted on charging a fee in contravention of the service agreed on the initial disclosure document and claim it back plus interest (at the rate you are charged if you have to borrow it otherwise 8% per annum simple interest).

If it is not paid, go to the Financial Ombudsman Service.

Gingergirl

Thanks Guys, it is good to hear some feedback, if you had of said- pay the IFA she has worked hard and deserves it we would as this is all completely new to us and we dont know- maybe she does? There is a question and a half- can I/ should I deal directly with the lender myself?
1. Would it jeopardise the Lender's decision?
2. It may be better to DIY from here because I think the IFA has made a few mistakes and doesn't seem to have the best of relationships with the lender although she says she is a 'pit bull' when it comes to fighting peoples mortgages. I am good with people and can be thorough when I know what I need to do- its part of my job.
3. If I do deal with the lenders directly what is the process we should expect and do we just speak to them and ask if it is ok to proceed DIY? The way I see it there is the one more hurdle of proving his financial independence then they will value the property (the shared scheme have already had a surveyor out). Then what happens and how long does it take in your experience?
THANK YOU BOTH BTW. We just want to get in and build a lovely wee home so we can start having a kid.

Thrugelmir

If you have a complaint regarding your mortgage broker. Then speak to the FSA.

Consumer website link below.

http://www.fsa.gov.uk/pages/consumerinformation/

The fact you were advised that you had been declined for the mortgage when you hadn't is extremely poor. Shows a total lack of professionalism from the MA.

Personally I would proceed directly with the lender and bypass the MA.

magpiecottage

Thrugelmir wrote: »

If you have a complaint regarding your mortgage broker. Then speak to the FSA.

No - you need to complain to the broker first and then, if you get no joy, to the Financial Ombudsman Service (the FSA does not involve itself in individual complaints unless the firm is not complying with a decision by an Ombudsman - rather than an adjudicator - that the complainant has accepted).

As far as the lender is concerned, you seem to already have a contact so simply call them, find out what is outstanding and send it to them.

Thrugelmir

magpiecottage wrote: »

No - you need to complain to the broker first and then, if you get no joy, to the Financial Ombudsman Service (the FSA does not involve itself in individual complaints unless the firm is not complying with a decision by an Ombudsman - rather than an adjudicator - that the complainant has accepted).

The complaint in this instance should be against the broker not the lender, hence the FSA not FOS.

Conrad

betmunch wrote: »

You cant just change this half way though beccause you feel the client is a lot of work.

You can - this point was made at an FSA conferance I attended. Client can walk away of course.

Thing is there can be a lot more work involved than you first anticipate - one thing leads to another and before you know it a 6 hour job turns into a 30 hour monster.

Conrad

Ps the broker like so many probably does not know what she's doing. To truly become competent takes a long time. Putting down that your ex bankcrupt husband will be living in the property will have introduced signifcant extra uncertainty for a start.

Gingergirl

Thanks Guys... We haven't had to mention on any forms that he was bankrupt, that is the reason we are not doing a joint mortgage- that and his accounts are a mess at the mo. Apparently we just need to prove he is 'finanicialy independent'. The MA has been working for 22 years... but yeah does seem to be stabbing in the dark quite a bit. I just cant get my head round her sending an email saying the mortgage was declined. The guy in the underwriting department explained they use that term to mean it is waiting further info for decision but not that it was rejected. Have any of you MAs ever come across anything like this? I mean, I would think that if this was the situation an MA would explain what else needed to be done (which we already knew) or give a plan B if it was rejected or if it was a lost cause give the bad news over the phone. I guess she either didn't understand or didn't give a dam.
I think we are gonna pay the fee and get into the house and then take it from there. We are both much to worried about rocking the boat and loosing our dream home. Fingers crossed. Reading some of the other threads it seems like an absolute nightmare.
ONCE AGAIN thank you ALL for your advice. VERY much appreciated.