Mortgage Broker went ahead too soon

nodiscount

Bit annoyed so would grateful for some perspective.

Basically my dad went to see a broker on Friday. Was offered an interest-only deal with a low arrangement fee. He told the broker 'sounds good' but didn't sign anything or pay any money. He brought the paperwork home for me to read. The broker then went on holiday that day (and is still away).
My dad rang today and has been told things are already in motion and the valuation has already been done. If he wants to pull out/choose another product he will forfeit a £400 valuation fee.

Can they get away with this?

Thrugelmir

nodiscount wrote: »

If he wants to pull out/choose another product he will forfeit a £400 valuation fee.

Doesn't sound right at all. Has someone confused your father with another customer.

nodiscount

Thrugelmir wrote: »

Doesn't sound right at all. Has someone confused your father with another customer.

I don't think so. They valued the right address!
But even if my dad was a abit ambiguous and gave the idea he was happy to go ahead, would they do so without paperwork? I'm confused and have a right mind to complain but don't want to go guns blazing if this is common industry practice.

ACG

The valuation would only be instructed after a factfind, a decision in principle has been obtained (this is the credit check) and an application had been made.

As has been said, something doesnt sound right. Its certainly not common practice for a valuation to be instructed without the applicant knowing about it.

nodiscount

ACG wrote: »

The valuation would only be instructed after a factfind, a decision in principle has been obtained (this is the credit check) and an application had been made.

As has been said, something doesnt sound right. Its certainly not common practice for a valuation to be instructed without the applicant knowing about it.

All this would involve paperwork i.e. a signature right?

ACG

You would imagine so yes.
I cant think of a single mortgage i have done that doesnt involve atleast one signature.

_Andy_

How was payment for the valuation taken?

Crashandburn

Some mixed information here.

Not too sure how he's incurred a £400 valuation fee when he has made no payment to them.

Is he remortgaging or buying a property? Remortgages come with a free valuation in most cases.

I also wouldn't go in guns blazing until you have the facts. It would sound like an application has been submitted which would say the adviser had quite a bit of information during the meeting to allow him to do this ie personal information including his bank details for the direct debit.

Some mortgages don't need a signature and can go to offer without anything being signed. Obviously all legal documents would then have to be signed to put the mortgage in force so until that stage, he is not committed.

nodiscount

_Andy_ wrote: »

How was payment for the valuation taken?

He hasn't paid anything.

It's a buy-to-let mortgage (but he isn't going to let it - that is a story for another day!)

I wasn't there so I can appreciate that perhaps my dad may have given ambiguous signals but he insists he did not give the final go ahead.

My problem with this is I was going to go with him before he signed anything as I wanted to compare some more products. I can't do that now because it seems he is locked in. It's interest only at 4.49% for two years. He wants to borrow £75000 with 40% deposit.

nodiscount

Crashandburn wrote: »

Some mortgages don't need a signature and can go to offer without anything being signed. Obviously all legal documents would then have to be signed to put the mortgage in force so until that stage, he is not committed.

They say he has to pay the valuation fee of he pulls out now.

Crashandburn

nodiscount wrote: »

They say he has to pay the valuation fee of he pulls out now.

Good luck to them to try and enforce that if he hasn't signed anything/made payment to them.

Can't say I've heard of a broker who pays a client valuation themselves and then tries to claim it back......not unless he's loaded!