Mortgage broker / right to buy rip off

miketheminstrel

Hi does anyone know about claiming against missold mortgages, especially right to buy mortgages through a broker

I came across a website saying that brokers were not acting in the interests of the client, and charging thousands instead of hundreds for the privilage.

I think this applies to me. I'd rather not go through a no win no fee merchant. I couldn't find any dierect links to this kind of advice

Any help is appreciated

dunstonh

Hi does anyone know about claiming against missold mortgages, especially right to buy mortgages through a broker

It seems to be something a few less reputatable complaint generating firms do. Most claims companies do not. That in itself should give you a clue.

I came across a website saying that brokers were not acting in the interests of the client, and charging thousands instead of hundreds for the privilage.

And how does a website know that about you?

I think this applies to me. I'd rather not go through a no win no fee merchant. I couldn't find any dierect links to this kind of advice

What do you think was done wrong then?
What year are we talking about (key as regulation started in 2004)?

magpiecottage

If it is the website I have seen it is a firm of solicitors trying to generate complaints against other solicitors.

It looked dodgy to me.

roonaldo

a lot of brokers did charge fee's. So?

dunstonh

The FSA prefers fees. It would be daft to start seeing complaints about fee charging when it is the preferred method.

magpiecottage

The site I saw seemed to making complaints against the solicitor who did the conveyancing.

miketheminstrel

They say that it involved the idea that they charged a fee to me and a fee to the lender, that as a broker they were not acting in my interests but the lenders. They say that the fees to a brokers should not have been £3500+ but significantly less. they say that the solicitor would have been aware that this was against the rules.

And how does a website know that about you?

It doesn't. it asks if it was right to buy, with a broker, charged £3k+, and after a certain year, probably 2004 as the other poster mentioned. Ours was 2005, so it fitted?
So it's not a case of how a website knew this about me

a lot of brokers did charge fee's. So?

It is not about whether they charged a fee, it is whether they charged a fee both to me and to the lender and in whose interest they were acting, and also how much that fee was

roonaldo

miketheminstrel wrote: »

It is not about whether they charged a fee, it is whether they charged a fee both to me and to the lender and in whose interest they were acting, and also how much that fee was

Brokers never charge lenders a fee.

Brokers receive a procuration fee from the lender, which will be disclosed in your Key Facts Illustration (KFI) towards the back.

The fee the broker charged you will also be stated in your Key Facts Illustration on the front page.

To receive a fee from lender and charge a broker fee are completely acceptable and there is no wrong doing.

It sounds like someone or website is leading you on. CMC's will tell you anything.

dunstonh

They say that it involved the idea that they charged a fee to me and a fee to the lender, that as a broker they were not acting in my interests but the lenders.

That indicates they do not know what they are talking about.

1 - brokers do not charge the lender a fee.
2 - There are different classifications of brokers. An broker working under independent classification is required to charge a fee. They will not keep any commission paid by a lender (unless it is to offset the fee). A whole of market broker will be paid a commission but may need to supplement it with a fee (small mortgages for example dont pay much commission).

It is not about whether they charged a fee, it is whether they charged a fee both to me and to the lender and in whose interest they were acting, and also how much that fee was

The FSA has no rules on how much or how little a fee should be. Brokers have never charged lenders. So, the whole thing is BS.

SuzyX

Hi, I am seeing a rep from a no win no fee law firm this evening who so far have explained the claim relates to the fact the Broker charged me a fee for the mortgage but that they also claim their fee back from the Council effectively getting their fee twice. Claim is for refund of fee and interest as it was added to the Morgage.

They have mentioned I will receive all the money they reclaim, no % to pay as they will claim their fee back from the other party, also that they will set me up with an insurance policy should they be unsuccessful and signing up for this is what concerns me the most...

Sounds to good to be true, will let you know how it goes................