Mortgage Broker Complaint

stacmac2003

Hi

Looking for some advice - we approached an Openwork broker to source new mortgage for home move. He advised us Northern Rock would be best for us and recommended an interest only fixed rate deal. Were advised all was progressing but 6 weeks later when solicitor requested confirmation of loan offer he began avoiding calls but when I did speak he reassured everything on track and even told my solicitor papers were in post. As our date approached he then informed us funds would be transferred to solicitor and mortgage would be tied up following week but was evasive about where these funds were coming from. At this point solicitor contacted Northern Rock who advised application had not been progressed and no contact from broker for several weeks. Solicitor advised us to set back entry date and contact new broker. Thankfully all now sorted but we were advised by new broker that Northern Rock would never have approved interest only mortgage anyway in our circumstances. However delay has cost us storage costs, temporary accommodation plus costs for second removal etc. In total we estimate approx £1,000 extra including increased legal fees. Do we have any grounds for seeking compensation and if so who from for an Openwork adviser?

dunstonh

Do we have any grounds for seeking compensation and if so who from for an Openwork adviser?

He is a multi-tied sales rep of Openwork. You complain to them.

Thrugelmir

Suggest you consult a solicitor to assist pursuing a claim.

The broker will be liable.

ACG

Yea, as Dunston says...he is appointed by Openwork. Complain to them.

The first piece of paperwork should have their information on. It was the one that says they are whole of market. authorised by the FSA, do/dont charge a fee etc - maybe 3 pages long roughly?

magpiecottage

Thrugelmir wrote: »

Suggest you consult a solicitor to assist pursuing a claim.

I suggest you don't - a solicitor will charge a fee which you cannot recover whilst a complaint under the FSA's DISP rules, if necessary going to the Financial Ombudsman Service is free.

The broker will be liable.

No - Openwork is responsible for the behaviour of its members in respect of arranging mortgages.

You should seek your out of pocket expenses as a result of the delay, including any duplication of broker fees, plus a payment for distress and inconvenience - (I would think about £250).

Conrad

Yes, a Solicitor is never needed, consumers have redress by way of the FSA and Ombudsman.

Essentialy this broker broke the Treating Customers Fairly rules, do not back down, pursue this and you should win compensation. Just stay with your core point that the broker did not treat you fairly or honestly and did not keep you appropriately informed.

First complain to the complain officer at Openwork.

stacmac2003

Thank you all for the advice. I will lodge my complaint with Openwork in the first instance.