Unregulated mortgage broker risks?

nids

What are the risks of getting a mortgage through an unregulated (/maybe dodgy) mortgage broker?

The transaction is between me and the lender, so it doesn't really matter how shifty/dodgy the broker is? Or is there another angle on this?

kingstreet

How would you get a mortgage through an unregulated broker?

Regulation and the advice process is there to protect you against bad advice and we have to subscribe to the FOS and FSCS and have professional indemnity cover in case we get it wrong.

This is an odd kind of question. Care to explain the reasoning?

Leon_W

Lenders do not deal with unregulated brokers and have rigorous checks in place to ensure that they are. Why use a dodgy (in your eyes) one when there are plenty of compliant ones ?


Check the brokers FCA number on the register.

ACG

Why would you use a dodgy/non regulated broker when you can use a regulated broker?

Im assuming the dodgy person is charging you a fee as theyre not going to get any commission, you could probably pay less and get advise from someone regulated and get the protection that comes with that.

nids

Without going into too much detail, we've been put in touch with a man who described himself as a mortgage broker, his company doesn't really check out and there is no FCA number mentioned or on his card. Office address is a serviced office - few things here and there which just don't feel right.

He says he's worked on personal relationships with bank managers/directly with lenders, which isn't that unreasonable. and he's also offering a ballpark figure which is pretty damn good.

Made a point of not giving him any fees yet (even though he's asked multiple times) as we're waiting to see what next. Meeting with a bank manager on Friday to see what gets put on the table, but I'm trying to work out risks of going down this route.

FYI - this is re a slightly complicated BTL mortgage

GMS

Even though BTL mortgages are unregulated most lenders will not accept business from unregulated brokers.

Why is it complicated?

You may find there are solutions through a quality broker

dunstonh

What are the risks of getting a mortgage through an unregulated (/maybe dodgy) mortgage broker?

You mean you would consider using someone who you know is trading unlawfully to buy such a major purchase?

a man who described himself as a mortgage broker, his company doesn't really check out and there is no FCA number mentioned or on his card. Office address is a serviced office - few things here and there which just don't feel right.

I doubt anyone puts their FCA number of their card. Is the company listed on the FSA register?

kingstreet

BTL is not regulated, but I would remain wary.

AFAIK regulated brokers handle their unregulated cases the same way they do regulated business, with the correct paperwork.

tom9980

nids wrote: »

Without going into too much detail, we've been put in touch with a man who described himself as a mortgage broker, his company doesn't really check out and there is no FCA number mentioned or on his card. Office address is a serviced office - few things here and there which just don't feel right.

He says he's worked on personal relationships with bank managers/directly with lenders, which isn't that unreasonable. and he's also offering a ballpark figure which is pretty damn good.

Made a point of not giving him any fees yet (even though he's asked multiple times) as we're waiting to see what next. Meeting with a bank manager on Friday to see what gets put on the table, but I'm trying to work out risks of going down this route.

FYI - this is re a slightly complicated BTL mortgage

My advice head to a chemist and buy a new tub of Vaseline, then call your "broker"

Mrs_Z

Hmmm.... alarm bells ring. Are you sure that this dodgy broker is not just after your brokerage fee and once you've paid him - that's the last you ever see or hear of him.

Mortgage_Mark_2

nids wrote: »

He says he's worked on personal relationships with bank managers/directly with lenders, which isn't that unreasonable.

Yes, it is. Unless he works for a reputable company, he won't have any kind of links with lenders.