Mortgage Broker Fee refund if they didn't actually do their job?

afraidofthelight

Hi everyone,
Not sure where I stand legally with this so just wanted to get some opinions..

I took out a mortgage with a broker back in March. They forgot/misplaced my documents and therefore the bank didn't receive anything for over a month (when I eventually found out; broker told me all was well and it was in the process of being underwritten, ended up being a total lie as I spoke to the bank myself) and I ended up sending them all the documents myself and being set back a month.

They have now collected their broker fee as we have finally exchanged. I did sign some piece of paper saying they would collect this after exchange but I don't know if I have any grounds to argue about it now that the purchase is going ahead.

£250 down the drain?

justcat

What documents did you have to send them?

kingstreet

Did you raise your dissatisfaction with the broker at the time, or have you left it until now to raise your issue with the fee?

afraidofthelight

I had to send our proof of address and bank statements to the bank directly. I also had to call them for clarification on where our application was up to as the broker lied telling me it was quite a lot further down the application process than it was.

I have left it until now to ask for a refund. Money is already gone. I did complain at the time but to be honest I've had so much going on with the move, work, and a billion other things that it slipped my mind to pursue the fee. Fully aware that was not wise.

justcat

I doubt you can get anything back. To be honest though, I would say that you didn't have to do that much vs what the broker had to do to find you a mortgage. He seemingly filled out all of the paperwork and sourced the mortgage for you. So for you to have to send in proof of address and statements and make a phone call, I don't think that would result in the broker losing the money he gets. Maybe you can check the thing you signed saying that they would get paid. I think it usually says something along the lines of when your mortgage (that he found) starts.

kingstreet

If you had a problem with me and told me about it, I'd say fine. You pay us no fee and we do no more work on your case.

You had your issues in March, kept the broker working on the case for you expecting to be paid and now you want to keep the fee.

afraidofthelight

Well no, they haven't done anything since our first consultation. I dealt with the bank after I found out they were lying about what they had done, so they didn't do anything apart for fill out the forms with me (30 mins) and try to sell me some inflated life insurance (1 hour).

And I found my mortgage, actually. We were a 5% deposit so not much choice so I already knew what I wanted. He assured me if I went through him though things would happen quicker and we were after speed. That was why I was annoyed that they just delayed us.

Anyway thanks for your comments I appreciate there's probably not much I can do now as I've left it too late. I should have never used the broker but was pressured by the estate agent and was my first house purchase. Will know better next time.

Jon_B_2

The brokers here are naturally going to disagree, but fundamentally they have not fulfilled their duties satisfactorily and to the agreed standard. That you were being sold a speedy service that actually was anything but suggests you should morally be entitled to a partial or full refund.

It's like buying a TV that has picture, but no sound.

justcat

I'm not a broker (clearly, lol) but I still agree that it should have been raised previously if you weren't happy with the service. Also the broker might have done things in the background that you weren't aware of.
Rather than us going on about it on the internet, how about you speak to the broker and air your frustrations. You never know...

libf

Jon_B wrote: »

The brokers here are naturally going to disagree, but fundamentally they have not fulfilled their duties satisfactorily and to the agreed standard. That you were being sold a speedy service that actually was anything but suggests you should morally be entitled to a partial or full refund.

It's like buying a TV that has picture, but no sound.

But you wouldn't watch it with no sound for a few months and then start kicking up a stink about there being no sound later.

ACG

Brokers are not "naturally going to disagree" - how does it benefit us that someone we do not know, helps to ruin the repuation of brokers as a whole? Added to the fact the broker appears to be part of an estate agents, which decent brokers are not particularly fans of anyway.

If you are uhappy put your concerns in writing to the broker, suggesting that as you had to do all of the work you do not think they warrant their fee (if that is what you think).

It should have been done earlier but it was not so you just deal with things as they stand at the minute and see where you end up.