Mortgage broker fee

Mackey_Wells

I used the service of a mortgage broker in February this year after we found a house we were interested in buying.The broker clearly said that there would be no fee,they would get commission from the mortgage lender and that was that.Unfortunately the seller has pulled out and now the mortgage broker has sent me a bill for £858 for the work they’ve done. I have not signed any documents that said I would be required to pay them a fee,I have had no correspondence from them indicating this either.I was clearly told I would have no fee to pay.
They are now in the process of sending me a compliance email but this is after the deal fell through.
Can anyone advise me as to whether I’m obliged to pay this fee? Kind regards.

YHM

Purely comes down to what was agreed at outset.

Did your broker send you an IDD (Initial Disclosure Document), as this should state what the fee structure is for their involvement.

Mackey_Wells

No I didn’t receive an IDD, I’m now waiting to hear from the manager of the company regarding the next step, but I’m reluctant to pay a fee for which I had no indication would be due if the deal fell through. Thanks for the response

amnblog

If this was a regulated (residential) Mortgage, terms should have been stated and agreed at outset. Failure to do so is a breech of regulation and the Broker would have no case.

If not a regulated case it is a civil law matter and you may agree an action with them or they may chase you through small claims court.

Mackey_Wells

No terms were agreed at the outset, the company secretary has said she will ask the manager if he will agree to waiving his fees for 3 months and us then completing a new purchase using their services.We are not prepared to try and find a property and then rush through a house purchase (in 3 months) in order to ensure they get their fee. Many thanks for the replies they are appreciated.

ACG

Ask them to send you copies of the paperwork you signed agreeing to pay the fee if the sale fell through.