Mortgage broker scam

Rac_1

I have just had advice from a FSA specialist broker as Im looking to remortage. I have heaps on unsecured debt that I would like to roll into my mortgage as I have plenty of equity. He told us the case was borderline but he had managed to get a decision in principle from a major high street building society. He wouldn't tell me which one but my credit report did!
He then proceeds to tell me his fees are £7K which he needs up front to START the application.
What stopping me going direct to the lender and are these fees normal??

amnblog

The fees are far from normal over ten times what we would charge, if we levied a fee at all!

It may not be as simple as going to the lender yourself.

I would say get a second opinion.

Senior_Paper_Monitor

Both stories on here are ludicrous - and embarrassing to the professionals in the business.


Neither fee amount/basis can be morally supported. I am obviously taking the stories at face value in making that statement.


It appears likely that incident 1 is an unlicensed arranger ?


In incident 2 this is obviously not the case - what documents explaining fees did you receive at the first point of meaningful contact (specifically when you provided him enough information/documentation to proceed to a DIP) ??


Whatever it was incidentally, you do not have to proceed with him and you are free to go to the lender direct or another broker ? The previous question merely establishes whether you have a basis for a successful formal complaint.

magpiecottage

Can the two posters give the names/addresses of the broker firms please?

Wantalot

Shall my friend go for small claims court or shall he report this mortgage broker (so called) to the regulated authorities if so which one please guide

~Beanie~

Wantalot wrote: »

Shall my friend go for small claims court or shall he report this mortgage broker (so called) to the regulated authorities if so which one please guide

Has your friend actually asked the broker for a refund and if so, what did he say?

Foxy-Stoat_3

Start a Section 75 charge back, unless your friend was bright enough to pay the "broker" cash...if he did then you couldn't wright this any better !

amnblog

Wantalot - have you, or your friend, checked to establish if the mortgage broker was regulated by the FCA?

Let_Us_See

Rac_1 wrote: »

I have just had advice from a FSA specialist broker.

He then proceeds to tell me his fees are £7K which he needs up front to START the application.

What stopping me going direct to the lender and are these fees normal??

1. There is no such category as an FCA (not FSA) specialist broker.
2. Do you look so gullible that someone could think they might be able to extract £7,000 upfront?
3. If you are gullible enough to even remotely consider such a fee, then you need the assistance of a broker to keep you safe!

Let_Us_See

amnblog wrote: »

Wantalot - have you, or your friend, checked to establish if the mortgage broker was regulated by the FCA?

I think you will find solely "mortgage advisers" are not listed by FCA. Mores the pity.