Was Mortgage Advisor Negligent ? Stand To loose ££££

ACG

SPM is far more experienced in RTBs than I am so I would listen to her over me but im just going to add my thoughts...

As part of our exams RTBs do come up and in there im sure there is a little bit about how the property would be subject to paying back some of the diso!!!! if sold and I THINK that it can not be let out.

As SPM says I am a broker who has only done a handful of RTBs, that being said I would have asked the question are you allowed to let the property as there is usually something in place (I would have been a little vague as I do not know the full ins and outs).

So speaking as a broker with limited experience in RTBs I would have expected the broker to be aware of this and to have atleast brought it up in discussion.

Your broker does not need to tell you that they are not a specialist in anything. You could be there all day - HNW, RTB, HTB, BTL, remortgages, first time buyers, home movers, adverse, commercial, debt consolidation - the list goes on.


The flip side to this is that you signed the RTB paperwork and you should be aware of what you signed so its your responsibility to bring this point up.

With regards to the fees:
- £400 x 2 for each mortage (advisers fee) - ask for them back as your are unhappy and see if you can come to an agreement.
- £390 valuation fee (on current property) - Might be worth seeing if you can get this back from the broker on the basis you think they should have delved deeper with it being a RTB property.
- £470 home buyers report . - As above
- conveyancing solicitor at another £1950 . - You may find you have no completion no fee or only have to pay for some of the costs and not the full amount.
- I'm also assuming that I'll still be liable for the mortgage arrangement fees of a further £2300. - Dont assume, if they have not been paid yet then chances are they will not need to be. I think only natwest and a few other lenders charge an admin fee if you pull out AFTER an offer has been made. Natwests is £150 so a lot less than £3k.

I think you will be a little more out of pocket than the £790 above but probably a lot less than £6k.

minimike2

I was presented with this exact scenario a week ago.

I swiftly advised the customer they could not do what they were looking to do. The only reason I have EVER seen additional monies raised in this way whilst in the 5 years is for home improvements (but also a LIKE FOR LIKE remortgage can be achieved).

It was up to the broker to do their research into what was possible BEFORE taking your money. It does NOT matter if they have only done "one or two" or no RTB mortgages, it is their job to research. The fact you advised them upfront that you were still in the five year period means they should have looked into all aspects of what you were proposing and if it was possible.

Number one rule with mortgage advising - If it is anything "out of the ordinary" you make damn well sure you do your homework before your customer pays for something.