Mortgage broker issues

kgng100

Hi,

I started to use a mortgage broker last year as I could not get a mortgage from a bank. The mortgage broker found a mortgage and I paid for the mortgage providers survey to be carried out on the property and the banks mortgage fee. The property fell through and we did not buy the property in the end. Now the Mortgage broker is insisting I pay for his services which amount to 1% of the mortgage amount which will said would be credited when the mortgage is completed.

The way I see it is that the mortgage amount is now £0 and also not complete, so I should not have to pay him. I also note that there has been no written agreement regarding this matter. But the mortgage broker is insisting I pay him his fee. Can anyone shed any light into whether I should be paying him for essentially nothing?

Your help is appreciated.

sonastin

Did he ever discuss his fees with you? Did he ever say to you "I get paid through commission from the lender once your purchase completes. If, for some reason, your purchase doesn't complete, you'll have to pay me the commission I should be getting"? If you have nothing in writing and you never had this conversation, he can't then claim fees from you at a later date.

As a mortgage broker, he should be regulated by the FSA and in the info he provides he should be telling you how and how much he is getting paid for the advise he's giving you. I believe that is one of the requirements of FSA compliance rules. If you haven't had that, you should take it up with the FSA.

CloudCuckooLand

To be fair to the broker, he has done quite a bit more than "nothing".

Its a question of whether he has failed to produce any paperwork to explain the situation, or if in fact there is paperwork and you have just chosen not to read it...

Find it, and read it.