Lifetime mortgage management fee. Please help

trefusis

A few years ago now I went through a remotgage with a company called Crystal Clear Home Loans. They got me a fixed rate (for 2 years) mortgate with Birmingham Midshires. At the beginning I was charged a one off "Lifetime mortgate management" fee and was led to believe that near to the end of my 2 year deal I would be contacted and advised on any other offers that were available - ie was I happy to carry on with my present lender or did I want to change. I have had no contact whatsoever regarding this so called "management" fee that I was charged in excees of £2000 for. Can anyone shed any light on this for me? Am I entitled to claim this fee back. I can supply more specific details on request.

holly_hobby

Have you contacted the company involved regarding their delay in contacting you ?

H

dunstonh

I am very much against these lifetime mortgage management fees or whatever they decide to call them. Too many of the firms take the money and make the promises but then vanish.

The business model is totally flawed. Yes they earn more on the first day as you are paying this fee. However, after some years, they are then having to arrange mortgages that dont pay them a penny. They then have to get new sign ups paying the fee to keep trading but that compounds the problem of having to do mortgages down the road that dont pay a penny. Sooner or later, the scheme collapses as the "free" work outweighs the money coming in. The company closes (and often phoenix up under a new name) and you lose any benefit you paid for.

roonaldo

Funnily enough, Crystal Clear Home Loans are now a CMC called The Fair Trade Practice. Perhaps you could contact the Fair Trade Practice about reclaiming the fee!

I would complain, the owner Mark Lance is still at the address Unit 3, Furze Court, 114 Wickham Road, Fareham, Hampshire PO16 7SH, perhaps if you dont get a satisfactory response you could take it to FOS, as they didnt go bust and im sure they are still under FOS jurisdiction.

magpiecottage

I am afraid the company itself was dissolved on 15 February this year.

Therefore any claim would have to be made to the Financial Services Compensation Scheme.

dunstonh

I am afraid the company itself was dissolved on 15 February this year.

So it follows the typical outcome for this business model...

Therefore any claim would have to be made to the Financial Services Compensation Scheme.

I doubt there is a claim to be made though. Its not bad advice. its a failed business and I wouldnt have thought FSCS get involved in that.

magpiecottage

dunstonh wrote: »

I doubt there is a claim to be made though. Its not bad advice. its a failed business and I wouldnt have thought FSCS get involved in that.

If the OP can prove there was a contractual obligation that the firm has failed to fulfil then they are entitled to redress.