Mortgage brokers fees

Jimbo1976

LWF Mortgages have appeared on here before

https://forums.moneysavingexpert.com/discussion/1715267

kingstreet

Introduced to them by Moneysupermarket, the new owners of this site. Interesting.

Conrad

Ok try and get the fee back - in fact you can also tell the Solicitor who legally acts for you, NOT to pay the fee - tell on completion day.

I know this firm - this is thier tactic. They keep you talking and slip the fee in the paperwork without telling you - it's a classic ruse.

People being what they are tust the firm as no broker fee is overtly mentioned.

So tell them you will do an official complaint. Use strong language such as 'I believe I have been duped'.

Explain you will be giving the FSA a call to warn them of this firms practice (this will terrify them), and yes the FSA will carry out an investigation if you do this (this is quite separate from any complaint you take to the FOS should the broker find against your complaint).
Letting the FSA know about bad practice is very important.


SUMMARY;

1) Ensure the solicitor does not pay the fee. Even though the broker recommended them, they still act fro you.

2) Complain to the brokers compliance officer. Tell them you've ccontacted the FSA to give them a heads - up that all may not be well with this firm. Do make that call to the FSA fraud team - don;t say it's to make a complaint yet, just say you want to notify them of malpractice

3) If the firm decline your complaint, then take it to the FOS


Your main point in all this is that they never mentioned a fee and you trusted them, afterall the broker was sooo nice and salesy (another reason I say to avoid nice saley type brokers).
Your second point is you were not given fee free solicitor options - THIS WAS BECAUSE YOU NOW REALISE THEY DO NOT LIKE PEOPLE USING LENDERS SOLICITORS AS THEY ARE LESS LIKELY TO PAY THE FEE IF THE CLIENT ASKS THEM NOT TO.

Jimbo1976

http://www.loanworld.co.uk/

No mention of fees on their web site.

http://www.fsa.gov.uk/pages/doing/regulated/promo/actions/case/example7.shtml

kingstreet

There's a link to their IDD in the "About us" section;-

http://www.loanworld.co.uk/initial_disclosure.pdf

Jimbo1976

Online IDD discloses a fee of 2.95%, min £995 and max of £3995. Ouch

http://www.loanworld.co.uk/initial_disclosure.pdf

Conrad

Jimbo1976 wrote: »

Online IDD discloses a fee of 2.95%, min £995 and max of £3995. Ouch

http://www.loanworld.co.uk/initial_disclosure.pdf

But it fails TCF rules as it's not nearly prominent enough and it's also a link.

OP - deffo pursue this, I bet you will find others have made similar complaints.

jimbob8

"Ok try and get the fee back - in fact you can also tell the Solicitor who legally acts for you, NOT to pay the fee - tell on completion day."

Thanks Conrad - Will the solicitor not just pay them automatically as the money reaches their account?

I'm guessing by your response as well that this will not stop the actual mortgage agreement from going through but will just become an issue between myself and LWF?

Jimbo1976

Conrad, I agree totally that it is not prominent enough, I was just quoting, not trying to justify or support

Conrad

jimbob8 wrote: »

"Ok try and get the fee back - in fact you can also tell the Solicitor who legally acts for you, NOT to pay the fee - tell on completion day."

Thanks Conrad - Will the solicitor not just pay them automatically as the money reaches their account?

I'm guessing by your response as well that this will not stop the actual mortgage agreement from going through but will just become an issue between myself and LWF?

Solicitor MUST take your instruction as you are the client. They sometimes pretend they cannot do this - don't worry that's just a ruse because they are in bed with a broker.

The mortgage by law will remain unaffected. The broker may well imply otherwise - thats another classic ruse.