Mortgage Broker fee Unfair????

Sawkt23

Hi everyone, I have just come across this website after links from Leagle Begales, I have to say its been so helpful so far.

I just wanted some opinions on my legal standing on a brojer fee which I am being chased for.

I have recently applied for a bussiness loan to purchase a commercial property, I have applied via a broker who charged me an initial £400 fee and then would charge me a 1% commision on th loan amount for the introduction to the bank. To cut a long story short the deal for the purchase fell through leabing me out of pocket after paying for numerous surveyor cost etc, I later decided to go back to the bank and refinanced a loan deal with them which was not dependent on the purchase but a straight loan.


I have now received a demand for the 1% fee in excess of £5000.00 from the broker although I have tried to explain to them the original deal fell through and I did not go ahead with the property purchase.

They have transferred it to a debt collector which I am going to ignore anyway, just so I can get some advice where do I stand legally. In relation to me agreeing a fee no type of contract exisit apart from an a4 paper with a paragraph that I agree to pay them 1% fee which I initailly signed and dated.

Any help would be greatly appreciated.

Thanks

Sam

dunstonh

just so I can get some advice where do I stand legally.

Same as any fee. You look at your contract.

A broker contract should state the fee on it and should cover when the fee becomes payable and how much of the fee applies if the transaction does not take place.

In relation to me agreeing a fee no type of contract exisit apart from an a4 paper with a paragraph that I agree to pay them 1% fee which I initailly signed and dated.

Which is a contract.

A fee for a service that does not go full distance is fair but you would typically expect it to be reduced by an amount if it does not go full distance. Does the contract state anything about when the fee becomes payable? (such as when the loan is advanced) or if the loan does not proceed?

Thrugelmir

You said the 1% fee was for the introduction to a bank. Appears that's what the broker has achieved for you. As you've obtained the funding you were seeking.

In relation to me agreeing a fee no type of contract exisit apart from an a4 paper with a paragraph that I agree to pay them 1% fee which I initailly signed and dated.

What does the paragragh say?

ACG

so they said they would charge you 1% for the loan, you now have that loan albeit on a different property and you think its unfair?

Would you have got the deal without the brokers help? They did the ground work for the deal so why shouldnt they be paid? Is it their fault the original purchase fell through?

kingstreet

Did you have a relationship with this lender before you were introduced by the broker?

I later decided to go back to the bank and refinanced a loan deal with them which was not dependent on the purchase but a straight loan

Did you have this loan you refinanced previously then, or were you refinancing the offer obtained for you by the broker?

If you already had a relationship with this lender, why was the broker needed?

_Andy_

More to the point, no-one has yet addressed the issue of you using grey italics.

Thrugelmir

_Andy_ wrote: »

More to the point, no-one has yet addressed the issue of you using grey italics.

What's wrong with them?

kingstreet

I presumed this was a C&P from another forum, hence the different font, colour and size.

dunstonh

Its better than this.

JuicyJesus

dunstonh wrote: »

Its better than this.

Not enough smileys, misspellings and bizarre fonts to be a proper MSE post, nor enough fundamental misunderstandings of everything.

hi everyone i'm new to this monkeyshaving business :D:D:D:money::money::money::money::money: but iv got benifits incum on my acoc.unt and i wunt to no iff i cud get any speshul deels for more interest????// :j:j:j:j:beer: iv trid coutts but parrently u need 2 b the queen and first direct just laffed at me :eek::T:T:):T:( iv got a baby if that mattrs

also can i reclaim ppi on mi debit card, i put in a claim 2 mi bank but they tld me i had 2 go 2 somethin calld the finanshil omnibombibus servis but i cant cos i hav a child

There. Much better.

_Andy_

Post of the month JJ. Love it.