Broker Kept my fees

WayneS_2

My daughter just had a bad experience with a mortgage broker .
He did a lot of searching and finally said he had found some lenders that would offer a mortgage.He then requested a fee of £499 plus another £370 for a valuation fee.
She then found out a week later that she could not in fact have a mortgage as the lenders had found a payday loan that they had taken out some 6 months ago which was paid back within a week.
The broker then said that he could not refund the £499 !
I have yet to speak with this Broker but he did not ask my Daughter about any previous payday loans (he only asked if they had any loans which they dont at the present time.
I am going to ask him for the money back as I feel he should have done a more thorough check before asking for the set up fee.
Have we a right to get this paid back.?

kingstreet

That would depend on the fee agreement/terms of business signed.

ap1985

I am pretty sure the valuation fee should at least be refunded to you if no valuation has been taken out. The first time i tried for a mortgage we were rejected at the first stage and the valuation fee was refunded back to us.

WayneS_2

Thanks for the replies I will get in touch and see what I can do.

I feel he should have made sure they could have the mortgage before he took the fee and he has not done a thorough check in our opinion.

ACG

What does the brokers paperwork say with regards to when the fee is chargeable? Is it at outset/on application/offer/completion?

Who was the lender who he/she applied to?

Why have they not looked for an alternative lender?

On a side note, if your daughter is old enough to get a mortgage she is old enough to fight her own battles. If one of my clients parents jumped on the phone it would not do anything as the contract is between myself and the client.

dunstonh

The broker then said that he could not refund the £499 !

What is the £499 fee?
Is it a non-refundable mortgage application fee?
Is it a broker charge? what?

I have yet to speak with this Broker but he did not ask my Daughter about any previous payday loans (he only asked if they had any loans which they dont at the present time.

To be fair, people who have just used a payday loan don't tend to be applying for mortgages in the following months. Payday loans are for people with no savings and desperate for money. Someone buying a mortgage would have a deposit and able to fall back on that in cases of an emergency.

Have we a right to get this paid back.?

You have a right to ask anything you like. You have no right to get it back though unless it is an error by the broker.
What has the broker said when your daughter asked them about the fee?
What does the key features say about the fees?
What fee agreement has your daughter signed?
Are other lenders now being looked at?
Was a credit check applied for?

Thrugelmir

WayneS wrote: »

the lenders had found a payday loan that they had taken out some 6 months ago which was paid back within a week.

Payday loans are a last resort of borrowing. Asked rhetorically. Why would be the major concern. As your daughter should have had savings.

csgohan4

OH dear a broker who didn't bother checking the client's credit files or the client didn't bother researching her own credit history and applying for mortgages.

Norscbu

Of all the things to forget to mention, eh?

WayneS_2

I agree pay day loans are not good but if the broker had asked have you had any payday loans in the last year the answer would have been yes and he would not then have asked for £499 to apply for the Mortgage.
So I still feel under these cicumstances the broker has not done his research or job correctly.
He carried out a credit check which was OK it was the mortgage lender who flagged up the payday loan and refused the loan.
So who has been paid here the broker who tried to set up the mortgage or the lender who refused the mortgage

dunstonh

He carried out a credit check which was OK it was the mortgage lender who flagged up the payday loan and refused the loan.

So, you are saying there is nothing on that which would give concern?

So who has been paid here the broker who tried to set up the mortgage or the lender who refused the mortgage

So, what is the problem? The broker will now try a different lender based on the new information that has come to light.

So I still feel under these cicumstances the broker has not done his research or job correctly.

The job is not complete yet. Research is only as good as the information supplied.

What is your daughter doing in applying for a mortgage just 6 months after using a payday loan?