Is my mortgage broker dodgy?

maninthestreet

What commission was he expecting to be paid on these policies, given the fact you explicity told him NOT to take the policies out for you? He's ignored your instructions. He's lost something he wasn't entitled to in the first place.
As others have said, stand your ground, don't be bullied into doing what he has demanded. From the wording of your post, it sounds like he turned up at your house to make these demands - tell him that you consider this as harassment, and if he does this again, you will report it to the police as a breach of the Protection from Harassment Act 1997.

olly300

The FSA would be interested in his conduct even though you can't actually complain to them.

http://www.moneymadeclear.fsa.gov.uk/home.html

So it may be worth complaining to him in writing, and informing him that you have sent a copy of your complaint to the FSA.

dunstonh

You cant complain to the FSA but you can make them aware of someone breaching FSA rules.

Conrad

ddavis wrote:

Mine was the same...

He also signed me up for Payment Protection insisting that it was a term of my mortgage. I asked Abbey (my mortgage company) who said they couldn't comment on my individual case but they knew of no occasion where they have ever enforced PPI.

He tried to sign me up for life / critical too but was told promptly and in no uncertain terms what to stick and where to stick it. After that little chat he was as good as gold.

Until my PPI came in the post... Abbey sorted it though and I wasn't charged a penny.

This highlights the 'free advice' issue well. 'Fees free' advisers welcome you on the false pretense of arranging your mortgage for free, when in actual fact the real agenda is to also sell you (they would say 'advise on') insurance.

Take this example:

Abbey Nat £150000 mortgage generates £500 commision.

A £60pm £150000 life and CIC policy would generate a further c£1000.

The OP was no doubt warmly welcomed at outset, and at no time was told by the 'adviser' the true agenda. Sharks.

Rick62

Conrad, please stop posting defamatory posts.

The vast majority of mortgage advisors of all types are straightforward and honest. A few have still slipped through the net who are not, who are not clear about fees and may be driven by commission rather than the clients best interests. These are found in both fee charging and fee free brokers.

twinkle_star_7

thanks for all your help with this, I spoke direct to the lender today, and now im even more worried. My mortgage hasnt yet fully completed and they told me that the broker could actually cancel my mortgage on the grounds that he recommended me. Im scared of upsetting him now as i dont want to jeopardize my mortgage until it has gone through.
Originally he had told me that I didnt have to pay a fee for his services yet on the key facts illustration none of the boxes have been ticked in the section about the mortgage fees. Does this go in my favour or his? if I mention it to him can he suddenly produce another one with the box ticked that says I have to pay a fee?

dunstonh

I spoke direct to the lender today, and now im even more worried. My mortgage hasnt yet fully completed and they told me that the broker could actually cancel my mortgage on the grounds that he recommended me. Im scared of upsetting him now as i dont want to jeopardize my mortgage until it has gone through.

He would be crucified by the FSA if he did that. It would possibly be the single biggest breach of the FSA's TCF rules to date.

Originally he had told me that I didnt have to pay a fee for his services yet on the key facts illustration none of the boxes have been ticked in the section about the mortgage fees. Does this go in my favour or his?

Yours. At least one box has to be ticked otherwise it is an uncompliant document and a breach of FSA rules.

if I mention it to him can he suddenly produce another one with the box ticked that says I have to pay a fee?

Yours is the one that matters. Hold on to it.

I wouldnt worry about it at this stage. I would string him out and get your mortgage offer signed and returned. Once you have signed the offer letter, it has gone too far for him to do anything and I really doubt he would. His actions have broken enough rules so far to get him in trouble with the FSA if they were out.

Is the adviser part of a network? Take a look at the key facts document and look at the second page, section 7. It mentions what to do in the event of a complaint. Is it his address or is it somewhere else/someone else?

twinkle_star_7

thanks for all of the above dunstonh, i will definatley sleep easier tonight. Ive looked on the key facts document section 7 and it is his address of the company that he is from, but no doubt they all pee in the same bucket.
Just to put my mind at rest completely though, even though the boxes havent been ticked - in the "understanding the mortgage terms" document which he provided me with it does say "---- ---(name of company) may charge a fee of up to 1% of the purchase price on your property. This will be discussed with you by your mortgage adviser and contained within the key facts about your mortgage letter and in the key facts illustration".
As you know the key facts havent been ticked, so does this mean that the above is nul and void as the box hasnt been ticked?

Rick62

Yes, it is null and void. If they key facts does not explicity show a fee then ther is no fee.

You have nothing to worry about, dunstonh is spot on, I can't beleive the lender would cancel the mortgage (but if they did you could then just apply directly anyway) but the broker would be risking losing his FSA authorisation and so his business.

arkie

Conrad wrote:

This highlights the 'free advice' issue well. 'Fees free' advisers welcome you on the false pretense of arranging your mortgage for free, when in actual fact the real agenda is to also sell you (they would say 'advise on') insurance.

Take this example:

Abbey Nat £150000 mortgage generates £500 commision.

A £60pm £150000 life and CIC policy would generate a further c£1000.

The OP was no doubt warmly welcomed at outset, and at no time was told by the 'adviser' the true agenda. Sharks.

conrad is not slagging brokers off, he is merely pointing out a possible disadvantage of using a fee free broker. Conrad is a fee charging broker, like myself, and the amount of business i and my company take off fee free mortgage brokers is amazing, clients dont like being bullied into insurance.
Yes the broker in the original poster is wrong, he hasnt ticked his KFI , in my opinion use a fee charging broker who is not motivated by selling insurance or the fee the lender pays out


iam a fee charging mortgage broker