Mortgage broker demanding fees

Bluebird_Karen

Good evening

I am hoping you can help.

My husband and I used Click Mortgage Solutions to arrange a mortgage on a rental property.

During the 1st telephone call we were advised their fees were payable upon completion.

Sadly our 1st house did not complete, however, we found another suitable property within a month or so. We asked the brokers if we could amend the original deal which they said yes as it was just a change of address and pretty much the same TLV. The lender approved our offer within an hour and a new offer sent within 4 working days of the change.

Once again this house fell through, yet, today the broker have invoiced us for their fees of £1,250.

We contacted them saying fees were only payable upon completion to which they said they had arranged 2 mortgage offers and we can not expect them to work for free, to which I responded that we were told fees were payable upon on completion.

They then reduced the fees to 50% which we argued was still to high in comparison to their work undertaken, the brokers then asked what we thought was reasonable we said £200 which they accepted.

We still feel agrieved as they did state payment if fees upon completion and now they are stating that they should be paid as we can't expect their service for free as a lot if work was undertaken of which we dispute.

Do you think this acceptable and would you pay the reduced offer of £200

anselld

You offered it, so now you should pay it ... but no, it wasn't reasonable for them to demand it and you shouldn't have offered.

jjlandlord

In my view that was no real argument that the fees were indeed only payable upon completion and the broker was just fishing.
Why?
Because otherwise there would not have proposed and agreed to only £200 instead of £1,250...

Bluebird_Karen

Thank you for your help.

We only made the offer as felt intimidated and bullied. Truly backed into a corner so felt there was no alternative.

ACG

Have a look at the KFI - does it say in section 8 their fee is payable on completion?
Did you sign anything to say otherwise? If not tell them to take a long walk off a short plank and dont pay anything.

https://forums.moneysavingexpert.com/discussion/4301535

Argghhh

if you had completed, would you have paid the charges for that house + charges for the other that fell through? no neither would i as you pay on the completion of the purchase, bit like estate agents - no sale - no fee - if i pull my house off market i wont be paying the EA anything as it was fees paid upon seller introduced
you have offered so they can pursue you for the £200 unless it was over the phone and then you could deny offering it to them

ACG

They cant persue for something they are not entitled to.
I would love to see that complaint hit the financial ombudsmans desk. They wouldnt stand a chance.

Argghhh

ACG wrote: »

They cant persue for something they are not entitled to.
I would love to see that complaint hit the financial ombudsmans desk. They wouldnt stand a chance.

legally probably can't... but it appears they are doing a good job of doing it so far :P

ACG

I charge my fees on offer. I put a clause in that says if the client pulls out I reserve the right to charge a nominal amount to cover admin... I have only ever done that once.

I charge on offer and accept that some of them will not proceed, its part and parcel of the job. I have had people pull out and offer to pay but not taken a penny, even though I am within my right to.

To ask for money they are not entitled to because of their own terms and conditions and then lay on emotional blackmail is crazy.

So I go back to my first post.... tell them to take a long walk off a short plank and if they want to get in touch again to do it writing so you have a paper copy for the financial ombudsman, just so you can show them they are asking for money they are not entitled to because of their terms of business.

kinger101

Did you have a written contract? If so, the verbal one was on completion. You did not complete so no money was due. Phone them back and say that the £200 you suggested was not an offer (merely a hypothetical discussion), and therefore could not be accepted.

They won't take you to court. It's £200. And they'd probably lose.