Mortgage Advisor - help with fee's

mac456

Hi All,

We are in the process of getting a mortgage and went with the mortgage advisor recommended by the builder (probably a big mistake)

We went ahead with the mortgage on friday to get confirmed with Nationwide. Our advisor put through the application to nationwide on Friday mid day.

In the information they sent us before we went ahead to confirm the mortgage with Nationwide it clearly says Broker's fee payable £0.00

Now over the weekend, we have received the mortgage advisors confirmation with all the details. and a EXTRA sheet of check lists that he was meant to tell us but didn't (summary of there services)

One of them was their fee.

They are saying that will we have to pay upto 2% of the loan amount on completion. This was never mentioned during the whole process and only mentioned after we payed the booking and arrangment fee.

Where do we stand on this? obvously we will not be going ahead with this mortgage but we want our money back for the fees to Nationwide. £325

Will this effect our chance of a mortgage if we re apply with Nationwide?

Any Ideas?

StanVanDamn

You will need to ask the mortgage advisor.

Nationwide will normally pay a fee to the mortgage advisor for you taking the mortgage through them (mortgage advisors dont work for free )

Worst case - you can still cancel and reapply direct with the nationwide

I just bought a house on shared equity and went direct to Halifax as they are nationwide are the best for it - had £150 for dealing direct with them

GMS

If you have a decision in principle with Nationwide then you could look to transfer it to a direct application or to another broker.

2% sounds a big fee. How much is the loan? You could always try to negotiate with the broker you have.

dunstonh

They are saying that will we have to pay upto 2% of the loan amount on completion.

That is a staggering amount. Even for an independent let alone a whole of market who keeps the commission as well on top of that.

Where do we stand on this?

It is a rule breach. Any fees have to be disclosed on the Key features illustration and must be disclosed in advance of proceeding. As you have signed no fee agreement and rules were breached, they cannot collect the fee. They may have and puff but you could mention that you would lodge a formal complaint and go to FOS if necessary (that would see them hit with a £500 charge plus a complaint record which no adviser wants). So, the threat should be enough to back down.