mortgage broker charging me after deciding to not use him

dunstonh

That sounds fair!!! So I can just threaten any IFA with this is his fee is less than £500????

No. The FOS do have the option to waive the £500 on frivolous complaints. You have to have a genuine complaint reason. The OP does in this case. Also, the IFA can decide to pursue you for costs on frivolous complaints.

scotsbhoy1

Thanks alot for the help its really appreciated especially since im trying to deal with a million things at once along with buying a house myself on top of it all. i have no problem with paying fees where they are due but in this case it is clearly stated the fee is due on application of the mortgage and i decided not to apply for said mortgage so the fee is not due, so i hate being chased for money i dont owe especially after saving so hard for a house.

a couple of questions i have though:

since the keyfacts states the fee is due on receipt of application , am i correct in thinking that if i had applied for the mortgage , i would obviously be liable to pay the fee but it still doesnt guarantee that i would get the mortgage?if i failed the credit check by the bank and didnt get the mortgage i would be still liable to pay the fee of course?

since there is a few mortgage brokers on this very forum ,what is the normal practice for brokers charging fees, I.E do anyone charge fees just for getting customers mortgage promises?( obviously if sharing such information is not against forum rules)


and im going to write a letter to them based on the tips from this thread.is there any tips or input you could give me to help get my message across?


thanks again for the help.

ACG

Different brokers charge in different ways:
- Some will charge for the advice,
- Some will charge once an application is made (whether it completes or not),
- Others will charge on completion
- and some will not charge at all.

I have been charging on completion, i have been told that i should change this to charging on application by people i work with.

However, i also do some work for an estate agent and for that he has told me not to charge his clients a fee, im happy to do that as it helps me with my cashflow and i dont have to search for clients.

There is no hard and fast rule its down to the advisor and to some extent the client.

scotsbhoy1

ACG wrote: »

Different brokers charge in different ways:
- Some will charge for the advice,
- Some will charge once an application is made (whether it completes or not),
- Others will charge on completion
- and some will not charge at all.

I have been charging on completion, i have been told that i should change this to charging on application by people i work with.

However, i also do some work for an estate agent and for that he has told me not to charge his clients a fee, im happy to do that as it helps me with my cashflow and i dont have to search for clients.

There is no hard and fast rule its down to the advisor and to some extent the client.

would you in your experience and knowledge of the subject say i am right to be appleaing this fee ?

Thrugelmir

Did you sign a "terms of business" agreement with the broker at the outset?

ACG

Dont hold me to anything but i think they are in the wrong. At first i didnt, but now you have gone into it a little more i am siding with you.

scotsbhoy1

Thrugelmir wrote: »

Did you sign a "terms of business" agreement with the broker at the outset?

no i havent signed a thing.the only thing i have ever signed that had anything to do with a house was 7 months ago for a house i went for that fell through.it was a different solicitor than the one im using now and no broker was involved at that time.i received a irrevocable mandate with the application documents the broker sent me for the mortgage,the document basically adds the £250 fee to my solicitors costs but i havent signed or sent anything to either my solicitor or the broker.I also talked to the solicitor on the phone who understands im not using the broker anymore and said its perfectly fine.

Thrugelmir

Then I would just walk away. As there's no evidence of a contractual arrangement.

scotsbhoy1

I have used kingstreets very well written template and edited it a bit to send to the broker.

Dear broker

I was made aware of your fee requirements by telephone and understood a fee would be payable following "receipt" of an application.

Having studied the key facts illustration for the recommended offer and seeing the mortgage offer on paper and in detail for the first time I believe it differed in some respects from what I was told verbally. I therefore decided not to proceed at that stage, prior to completion or submission of any application.

I therefore withdrew at a point before I committed myself to the payment of any fee to you or any other party and would assert this in a complaint to the Financial Ombudsman Service, should the need arise.

yours sincerely


Myself



does that seem ok or any improvements?

scotsbhoy1

anyone? should i mention i haent signed anything therefor it isnt legally binding?