Excessive mortgage arrangment fees.

Prophet_of_Doom

Hi
Wondering if anyone has any advice. Friends have recently told us that when they took out there interest only 110% northern rock mortgage (approx 7 years ago) the broker charged them a huge fee to arrange the mortgage (something like 10K). Broker has since apparantly been struck-off. Crazy situation but is there anything they can do?
Thanks

kingstreet

Broker told them fee?

They accepted, went ahead, completed and paid fee?

Can't see what anyone can do. The time to do something would have been the point the fee was disclosed when they could have said "no thanks" and found someone else...

Sorry.

ACG

£10k fee?
That doesnt sound right at all.

I wouldnt have thought a lender would allow them to add a £10k fee to a mortgage. As its a 110% mortgage im assuming they never paid £10k on completion - otherwise they would not have needed a 110% mortgage...

Prophet_of_Doom

Thought that would be the answer.

Thanks for the reply.

Prophet_of_Doom

Its a mad situation they have ended up in - interest only - no repayment method.......the mind boggles

amnblog

If the broker was a member of a Network you may have recourse through them.



(some Brokers are regulated under an umbrella company known as a Network - some are directly regulated by the FCA)

You would need to have evidence of the fee being paid and paperwork from the time that tells you the broker's regulatory status.


Of course the Network may also have disappeared since the case was completed.

Thrugelmir

Prophet_of_Doom wrote: »

Its a mad situation they have ended up in - interest only - no repayment method.......the mind boggles

Consolidated existing debt as well. In the belief that house prices would endlessly rise. Meaning that nobody would actually have to work productively in order to earn money. :eek:

amnblog

of course if the property had risen in price by 20 or 30% they would have been back to the broker for another go.