Advice on possible mis-selling / bad practice please?

Jeezeypeeps

My wife and I split up recently and, being a strong willed person, she decided to go off and arrange her mortgage on her new place by herself. She was tempted by our estate agents to use their mortgage advice service, and I have have serious misgivings about the way they have handled her application.

They didn't tell her at any point that there would be a fee for the service. Once the mortgage had completed, they deducted a fee of £400 from her bank.

They have never provided a "key facts" document for the mortgage, and they have never given her anything that could evidence that she was given 'best advice'.

They did not explain at the first meeting what products they were authorised to sell or what the likely fees for the service would be.

They gave her misleading information about the potential cost of a mortgage at the first meeting; by the second meeting the figures had changed substantially and they had no explanation for how this had happened.

She is, of course, writing to them to complain, however I wonder if anyone could summarise exactly how the mortgage process should be carried out within the FSA guidelines? What documents should be signed and what information should be given at each stage. I'm not looking for a lot of detailed information, just a general summary.

Any help greatly appreciated!

kingstreet

I can tell you what I give during the process and what I expect to be signed to acknowledge receipt;-

- Initial disclosure document (signed copy at time of application)

Showing service being provided and remuneration method agreed.

- Factfind completion (signed copy at time of application)

Setting out applicant's circumstances and needs.

- Key facts illustration (signed on front at application)

Setting out recommended deal, rate, fees etc.

- Reasons-why letter (signed at application)

Why recommendation best suits needs.

- Mortgage application, DDM and fee payment forms (signed at app)

Data to be submitted to lender.

I gather identification and proof of address, together with three months payslips and three months bank statements.

Jeezeypeeps

Thank you so much for such a full and fast answer! Are all those steps required by regulation? I know the initial disclosure is, and the 'key facts', but what about the others? I assume in any case that what you have listed would be looked on as 'best practice' by the FSA?

Thanks again.

GMS

Initial Disclosure document is required. This shows any fees to be charged.

For your ex wife to have had money taken from her bank she must have provided card details.

Fee should be disclosed in the Key Facts Illustration, detailed in the mortgage offer and a fee agreement should have been signed.

If the fee was not disclosed or agreed to then ask for a refund.

Jeezeypeeps

GMS wrote: »

For your ex wife to have had money taken from her bank she must have provided card details.

You're right; she was told there was a £100 arrangement fee payable to the lender, so she gave her card info.

Thanks for the advice.