Are broker fees owed if...

Mrcornish

Evening all,

This is my first (of many) posts on MSE, I have decided to finally join the forum as I am in the process of buying my first property and want to save as much money as possible now and in the future!

Basically I have a question regarding broker fees, I have a 2 year fixed rate mortgage offer that will be 6 months old at the end of December, with this in mind my broker who arranged the mortgage has been in contact to say that he has a contact within Halifax who can extend the offer until the end of March 2012.

However I also bank with the Halifax and went in to my local branch today to pay in some money in relation to the future exchange. I ended up speaking to a Halifax mortgage adviser who was very helpful. After a 30 minute conversation it was clear that I could get a lot better deal through them direct than through a broker.

My question is, if I were to get a offer on the table from the Halifax direct and take that offer, would I be liable to pay any broker mortgage arrangement fees/fees in general?

I look forward to any future reponses....

:beer:
Mrcornish

Meeper

Firstly, it depends on what documentation you have signed and what agreement you have with the adviser.

Secondly, your adviser did his job as directed and has spent a not-inconsiderable amount of time in obtaining a mortgage offer for you in the first place. Do you consider it fair to leave him with nothing after carrying out that work for you?

Perhaps you can get a better offer from Halifax direct now, but that may not have been the case when the original mortgage was obtained, so don't jump to the conclusion that the adviser has done a bad job either. Have you asked him whether there are any better options available now? I haven't used Halifax for a long time as they have not been particularly competitive for a long time.

Mrcornish

Hi Meeper

Firstly many thanks for your response.

Looking at my documentation I signed a customer consent form at the beginning, however shortly after this the broker went a 2 week leave and came back working for a different company, so I am unsure where I stand with the consent form as it is not for the current company he works for.

The property I am buying is also a first time buyers incentive and I am only able to get a mortgage through the Halifax due to section 106. Please do not think that I have bad feelings towards my broker as I feel that I am somewhat at fault and was slightly naive as this was my first time dealing with a mortgage. However from talking to the Halifax today I am able to save £30 a month on payments, £150 reward on completion and £500 less fees. I am also conscious of the fact that I will only have roughly 15 months of the fixed rate remaining due to the delay in build, again this has nothing to do with my broker and is no fault of his, however I feel that this is something that cannot be overlooked as that security of the fixed rate is important to me and my partner.

If I were to get a mortgage offer direct from the Halifax direct, I would of course be honest with him on what I was offered and give him the oppertunity to see what he could do.

Meeper

Well, strictly speaking he was probably in breach of some Data Protection as you were a client of his previous company. If you haven't signed anything for the new company he has also not followed appropriate protocols as you should have received a full suite of documentation from the company for whom he now works.

How much did you agree with the adviser as to his fees in the first place, and what is the mortgage size?

Mrcornish

I thought that this maybe the case, it all seems slightly confusing as the mortgage illustration and offer have the original company stated rather that who I am dealing with now!!

The documentation I have shows a fee of £322 will be paid to the original mortgage brokers from Halifax, the mortgage required is £85K.

dunstonh

Looking at my documentation I signed a customer consent form at the beginning, however shortly after this the broker went a 2 week leave and came back working for a different company, so I am unsure where I stand with the consent form as it is not for the current company he works for.

You employ the company. Not the individual. So, if he changed company then you have no agreement with that new company.

The documentation I have shows a fee of £322 will be paid to the original mortgage brokers from Halifax, the mortgage required is £85K.

That isnt a fee. That is the commission. If you use a broker, Halifax pay £322 to the broker. If you use the branch, they keep the £322 for themselves. It is not an additional cost to you.

Mrcornish

Thanks dunstonh

Meeper

Exactly. Sorry I couldn't respond - I had to go to bed.

Mrcornish

Meeper wrote: »

Exactly. Sorry I couldn't respond - I had to go to bed.

No worries, thanks for you input..

After all that I have decided to stick with my broker.

:beer: