Mortgage broker fee??

ally7304

Hello all,
I have just received my invoice reminder from my Independant Morgage Advisor. He sent his initial bill after he provided me with a mortgage on my new house. However my current house sale fell through therefore could not proceed with the new one.
Am I still liable for the full amount or should this be cancelled along with the mortgage that cannot be used?
Thanks in advance.
Ally

dunstonh

Am I still liable for the full amount or should this be cancelled along with the mortgage that cannot be used?

Depends on the contract you signed. It is not uncommon for a broker to have a lesser fee if the mortgage does not complete or for them to waive it as long as you use them for the next property (and its a reasonable continuation)

ally7304

Thanks Dunstonh,
The fact that I am friendly with the broker doesn't help. I will use him again however feel disgruntled paying the full amount when it's someone else's fault my house sale fell through.
I doubt the contract will help and would rather not fall out over this.

ACG

But the broker has done all of the work. Its not their fault either.

To be honest, I normally transfer the fee over to a new application providing its done within a month or 2.

Senior_Paper_Monitor

We follow a similar policy to ACG - and consider that totally fair.


Nothing you have said indicates that it is the brokers fault that the deal didn't complete - they did what they were paid for and got you a mortgage offer.

amnblog

Sounds like this situation is going to sour your relationship with this IFA.

That's a shame as not only has he completed the work asked of him successfully he has lost his profit as you did not complete, leaving him short of a fee from the lender.

We had a client earlier this year that paid us and then could not complete as the purchase was delayed. She tried again on the property and we charged her our standard admin fee to rewrite the case. That property was eventually dropped and she paid us another admin free to rewrite a mortgage on a new property.

She is happy although she has incurred addition cost due to third parties, we are happy although we have really put too much time in for the profit we will receive - relationship intact.

alchemist.1

Pay your bill. He doesn't work for free.