Want to make a complaint about Mortgage broker. Should I and for what purpose?

ChrisBint

I have recently been involved with a Mortgage Broker with regards to multiple mortgages;

- Remortgage current property to Buy To Let with additional borrowing (for deposit)
- Purchase of new property.

I have a preliminary meeting with them around mid November and we discussed things like Salary, additional income, property prices etc. During this discussion, the advisor mentioned that she would probably look to use Lender A for the BTL, and Lender B for the purchase due to their criteria and rates. At this point, I gave her full disclosure about an IVA that was now complete (a number of years ago, credit rating is now 5/5) and that one of the loans that had been written off belonged to Lender B and that she should not go with them. This was recorded (by simply writing lender name on paper at the time) and she would look at other options.

During the next week, I received notification that Lender B had given provisional agreement to the purchase. I was a little shocked, but assumed that due to passing the credit checks, all would be good.

The following week we met up and went through both of the proposals and various documents were generated and signed. I did not mention Natwest at this point as I simply wanted to get both Mortgages to offer to know that the property purchase would good ahead.

I received 2 Mortgage Illustrations;

Mortgage 1 - BTL Fixed 2 years (Lender A)
Mortgage 2 - Purchase Fixed 2 years (Lender

Applications submitted, valuation fee paid.

Valuation for Purchase came back fine. Valuation for BTL came back with value okay, but lower rental estimates due to minor refurbishment that needed completing, £50 per month difference.

So, all good I assumed!

About a week ago, I noticed on my credit card there was a refund, from Lender B, for the Valuation Fee. Following a call directly to them, it was explained that the application was declined due to the written off loan and that my Mortgage Advisor has been informed, or should at least be aware of this.Mortgage advisor is likely to have had access to this information for approximately 1 week before I called both the broker (no answer on multiple occasions) and then finally the Lender.

Following a fairly heated conversation with the Advisor, we agreed to move the application to Lender C. Lender C needed an additional 5% deposit, which I managed to source without changing the Remortgage. Application submitted. No explanation or Apology from Broker.

Yesterday I received the offer from Lender A, it was for a reduced amount, and for a 5 year fixed product and not the 2 year fixed. Discussions with Lender A about reduction in amount and the understanding that the rental income was the issue (first time I had been made aware by anyone that this was even a factor!) Discussions with Lender A about product revealed that that is the product the application was submitted with, no change based on down-value. 5 year product had a considerably higher interest rate then 2 year.

Another fairly rigorous conversation with Broker. During this conversation we discussed in detail, and for the first time, how the amounts you could borrow, at least with Lender A were not based on affordability, but on rental returns. There were a number of questions that I asked, one of those being how could the amount they would lend me go from 138000 to 120000 based on a difference of £50 per month. It was at this point she revealed that the initial calculations she had done, and therefore the Mortgage Illustration were wrong as she had calculated it using the lower tax band, where I am firmly in the higher. She knew my earnings from the start. She also eventually admitted that the application was submitted on the wrong product and that was solely at her door.

So, a number of things, but the highlights here;

1. Submitted an application into Lender B when explicitly told not to.
2. Submitted an application into Lender A based on a product for which I had not agreed, and had never seen any kind of documentation for.
3. Illustrated initial borrowing capabilities from Lender A incorrectly. It actually turns out that the 2 year product would never have been available to me if the correct figures had been used.

I want to make a complaint, and I will. I also want an apology, broker has never offered me one up until this point. I also do not want to pay their fees, which are going to be about £1100.

Do you think this is reasonable, or is there a better course of action.

For information, I have 2 Mortgage Offers which are acceptable to me.

Thanks

pjcox2005

I think the first one of applying to Lender B would be frustrating and human error, but I'd say that not mentioning it once you found out, suggested you hoped it would go through and didn't try to resolve it. So if it was that in isolation then I'd probably leave it.


That being said when combined with the rest it is poor service so I think you are fine to complain and state what you want, but it should be done before completion so either party can walk away. If you complain afterwards then you are relying on them waiving a fee for a service they ultimately complete. Fine if you just want it to go through but not if you're particularly focused on the fee. Though you run the risk of cutting your nose off to spite your face in that situation.

kingstreet

Make your complaint.

Set out what went wrong and what you want done to put it right.

It sounds like you got a relatively inexperienced individual. It now takes a lot of work analysing circumstances to ensure a particular lender will permit a two year fix on a buy to let for a higher rate taxpayer, for example.

The fact that NatWest uses internal markers which only show up later in the process is well-known among the more experienced among us and an agreement in principle or an accept of a full application at submission cannot be relied on.

ChrisBint

@pjcox2005

Absolutely, I assumed that passing the initial checks meant it was not an issue, so I proceeded on that basis.

Ultimately, I will be completing with these Mortgage offers, but still have a slight concern about making a complaint before completion (could the broker still have an impact on my mortgages if I do). However, I see your point and will probably have to do so.

@kingstreet

She came recommended...

The complexity of my situation was exactly why a broker was used, perhaps I simply got the wrong one in this case!

Yes annoyingly I have learnt that about Natwest, I assumed the IVA was done and dusted. Ironically, Lender C were also involved in the IVA but had no issues lending me a fair chunk of cash.

kingstreet

ChrisBint wrote: »

@kingstreet

The complexity of my situation was exactly why a broker was used, perhaps I simply got the wrong one in this case!

That's why an anally-retentive, detail-obsessed character like me is so good at this job.

It's 'plate-spinning' of the greatest quality!

FWIW we would have received commission on the two applications and charged one £250 fee so it can be worthwhile shopping around even when you have a recommendation.

As my signature says, I ask not to be contacted and have no interest in business from this site, so I'm not touting!

ChrisBint

Yep, lessons learnt. Once these are in place, I have a bit more flexibility and time to find a better setup for when I need to remortgage
!

kingstreet

I'm astonished I didn't get a lot more 'thanks' from people on here even if they were willing only to acknowledge just how anally retentive I can truly be...?