Sacking the Mortgage Advisor

Ric_pne

Hi all.

Just want some advice regarding a mortgage adviser. We are first time buyers and have recently had an offer accepted on a house and have instructed a Solicitor and currently in the process of preparing a mortgage application with our Mortgage adviser. During our meeting they mentioned about life and critical insurance and Income protection Benefit. They provided us with a quote which seems extremely high and have since got our own quotes which are significantly less. I have been in touch with the adviser and been told that in order to proceed with the application I need to agree what he has quoted or potentially incur a 1.5% fee of the mortgage to the Advisers firm should we use our own.

I am at the stage where I want to move on with the application and thinking of bypassing the mortgage adviser and going direct to the building society and processing it myself with them, however as I have signed agreements with the adviser will I be liable to any costs/legal issues that they might charge?

Guest101

Ric_pne wrote: »

Hi all.

Just want some advice regarding a mortgage adviser. We are first time buyers and have recently had an offer accepted on a house and have instructed a Solicitor and currently in the process of preparing a mortgage application with our Mortgage adviser. During our meeting they mentioned about life and critical insurance and Income protection Benefit. They provided us with a quote which seems extremely high and have since got our own quotes which are significantly less. I have been in touch with the adviser and been told that in order to proceed with the application I need to agree what he has quoted or potentially incur a 1.5% fee of the mortgage to the Advisers firm should we use our own.

I am at the stage where I want to move on with the application and thinking of bypassing the mortgage adviser and going direct to the building society and processing it myself with them, however as I have signed agreements with the adviser will I be liable to any costs/legal issues that they might charge?

I'm sorry, maybe I need new glasses, I cant read your contract from here....

hazyjo

They can't just stick in a random charge without telling you. You will probably find it's on that contract/agreement you signed. If so, doesn't sound like there's much you can do.


Is it an advisor linked to the EA per chance?


Jx

G_M

If the contract(s) you've signed permit it, ditch the adviser and find an independant mortgage adviser who is not connected to the estate agent, and who has no unreasonable conditions attached o whatever service, and mortgage, he offers.

If your contract ties you in, look at what penalties are involved in ditching him and make a decision.

kingstreet

A protection commission in lieu of fee deal is quite common, moreso among firms who give tied protection advice and get a higher commission than those of us who source from a wider pool of insurers.

FWIW we charge a mortgage advice fee of only £250 and offer protection advice without tie or condition looking only for the best combination of cover quality and price.

There are plenty of us out there, so you should be able to find someone like us with fairer terms by recommendation from friends and relatives if you can extricate yourself from the agreement you have signed.

Please note, this is not an attempt to get your business and I will have to turn down any PM asking for representation as my signature says. We are too busy as it is...