Unhappy with mortgage broker

ceejay1000

Hi,

I wonder if you can help. I am unhappy with the service provided by my mortgage broker, but I am unsure what to do about it and whether have a right to complain (and if so, who to - the parent company of my broker? the FCA? etc.)...

A few months ago, I approached a mortgage broker to help me with remortgaging at the end of my fixed term mortgage. I explained that I wanted a cheaper deal and also £30k for house improvements. I told him the amount that I thought I would need to repay my current mortgage at the end of the fixed term, but he did not request any documentation as evidence for this.

The remortgaging process just completed and the broker successfully helped me to get a cheaper deal on my mortgage. However, I did not receive £30k. In fact, I only received £25.5k. This seems to be for a few reasons:

a) the broker requested an amount that resulted in me getting only £29.2k based on the redemption figure I provided, but said that it was my fault for not properly checking the amount that he was requesting to borrow from the new bank;

b) it turned out that the redemption figure I originally provided was about £1k less than what I actually owed at the end of the fixed term. The broker helped me to arrange the original mortgage that I was remortgaging from, so when he did not ask me for any evidence of the amount owed, I assumed that he would double check the amount needed for the redemption. He did not do this, but just relied on my figure (I accept that I provided the wrong figure);

c) it seems that the final redemption figure has been increased by the amount of my final mortgage payment, as this was only made a few days before the remortgage took place and had not cleared in time. This reduced the loan figure by a further £2.5k. I am told that I will get this back, but a month or so ago, the broker told me that I would get the £2.5k back on top of the £30k loan, not as part of it.

Sorry this may be a bit complicated, but there are few different elements as to why I do not seem to have received the full loan that I was seeking. So far I've not received any satisfactory explanation for the broker's actions and I'm unsure how much I can complain about this / what further action I can take. Essentially I feel that the broker has applied for the incorrect mortgage amount for my objectives.

Please can somebody help - what should I expect and what action can I take? I would have thought that it is the mortgage professional's job to check all of the figures that I provided him (or at least ask for appropriate evidence) and to fulfil the objectives that I was seeking - basically a lower mortgage + 30k (it does not seem that the lender had any issues with the amount I was seeking to borrow).

Many thanks!

dunstonh

but I am unsure what to do about it and whether have a right to complain

Everybody has the right to complain about whatever they like.

(and if so, who to - the parent company of my broker? the FCA? etc.)...

The complaints address will be on the terms of business/initial disclosure documents given to you when you started. If in doubt, you complain direct to the broker.

a) the broker requested an amount that resulted in me getting only £29.2k based on the redemption figure I provided, but said that it was my fault for not properly checking the amount that he was requesting to borrow from the new bank;

When changing lender, the figure is always going to be a little fluid depending on how long it takes and what information you give. The new mortgage puts a total amount being borrowed.

b) it turned out that the redemption figure I originally provided was about £1k less than what I actually owed at the end of the fixed term. The broker helped me to arrange the original mortgage that I was remortgaging from, so when he did not ask me for any evidence of the amount owed, I assumed that he would double check the amount needed for the redemption. He did not do this, but just relied on my figure (I accept that I provided the wrong figure);

He is not required to check it. Some will accept what you say. Others will want to go a bit further the bottom line is that they are only required to go by the figures you supply.

c) it seems that the final redemption figure has been increased by the amount of my final mortgage payment, as this was only made a few days before the remortgage took place and had not cleared in time. This reduced the loan figure by a further £2.5k. I am told that I will get this back, but a month or so ago, the broker told me that I would get the £2.5k back on top of the £30k loan, not as part of it.

Frequently happens and you do get it back (usually within a few weeks).

You have not got a £30k loan. You have a new mortgage with a new total.

Sorry this may be a bit complicated, but there are few different elements as to why I do not seem to have received the full loan that I was seeking. So far I've not received any satisfactory explanation for the broker's actions and I'm unsure how much I can complain about this / what further action I can take. Essentially I feel that the broker has applied for the incorrect mortgage amount for my objectives.

You may feel that but you admit it was you that gave the broker the figures. You didnt buy a new £30k loan. You remortgaged to a new lender and requested a new total. You were issued with a contract with that new total and you signed it.

I would have thought that it is the mortgage professional's job to check all of the figures that I provided him (or at least ask for appropriate evidence) and to fulfil the objectives that I was seeking - basically a lower mortgage + 30k (it does not seem that the lender had any issues with the amount I was seeking to borrow).

Technically, they do not appear to have done anything wrong other than to rely on your information and you gave them the wrong information. It sounds like they have taken the figure you gave them and added £30k to it but that was not enough. The broker doesnt have access to the old lender and they will not provide him any information due to data protection. The broker is reliant on you giving them the information.

kingstreet

Were you not supplied with a draft completion statement from the solicitor handling the matter?

It is the solicitor's responsibility to obtain the redemption figures from the lender, not the broker's. If you got the completion statement from the solicitor but didn't share it with the broker, the broker wouldn't know what the redemption figure is as he has no relationship with the current lender and no authority to obtain such information.

Neutrinno

So in other words you gave the broker wrong information to work off then signed all the documents stating the loan amount etc without reading it first?

phillw

ceejay1000 wrote: »

c) it seems that the final redemption figure has been increased by the amount of my final mortgage payment, as this was only made a few days before the remortgage took place and had not cleared in time. This reduced the loan figure by a further £2.5k. I am told that I will get this back, but a month or so ago, the broker told me that I would get the £2.5k back on top of the £30k loan, not as part of it.

If you paid £2.5k to your old lender that they didn't include in the settlement figure, then you'll probably have to chase them for it. It's probably sitting in a holding account as they don't know what to do with it until you tell them.

minimike2

A decent broker would have asked for at least your latest mortgage statement to verify a number of things which they should be wanting to know about your existing lending. But that doesn't mean they did anything wrong by not asking for more detail.

You told them what you needed and they took it as gospel. Unfortunately I don't see anyone upholding your complaint.

Next time I would suggest looking for a better broker. Working of guesstimates and a clients "say so" is what I call "winging it".