Unhappy with Broker - Please help - Urgent!

RubyShoes

I know Ive posted about this before, but I really need some more advice!

I originally approached the Mortgage Advice Bureau to see if I could get a mortgage.

I was told yes - and a mortgage sourced for me. As I was looking for 100% on a shared ownership I was told there was only a few lenders that would do this. Leeds Building Society seemed to offer the best deal - so I said go ahead. Credit search was performed, and an offer made from LBS. So the paperwork was sent, and I checked it very thoroughly, and was not happy at all.

Aside from the fact the paperwork was in the wrong name - and was asked to sign this and return (no way!) - there were hidden fee's to which I was not told. I specifically asked right at the start if there was any charge for their service, and was told no, they get their commission from the lender.

So now MAB are saying that unless I take their life insurance, for £30 a month, and keep it for 3 years, then I have to pay them a £295 fee. They are also getting their commission from the lender too....

I am not happy at all. Previous advice was that although it wouldnt be seen as the done thing, nothing was stopping me from going direct to LBS and going from there. So I just called them, as I am in a tight timescale, and need to hurry things, and since I still havent recieved any documents in my correct name, I need to sort this mortgage out. However, when I explained the situation, they basically said no, we wont deal with you, as the adviser could complain that the stole my buisness. They didnt steal anything! The adviser lied!!

Help! What do I do now??! I need to sort this all out tomorrow!

Beddie

£295 is hardly a lot of money when compared to the other costs of buying a home, so why not just pay it - he found you a good deal after all. I agree however that they should have been more upfront about fees.

Rick62

They should have given you their terms of business at the start 'Key Facts about Our Service'. These should have disclosed the £295.

If they didn't supply the Key facts or if these did not mention the £295 then make a formal complaint and ask for the £295 to be waived.

MortgagesInc

Have you signed any sort of fee agreement - if not then I can't see that they could hold the fee against you.

RubyShoes

I have the documents - they were only sent after the credit search and mortgage offer had been done. I had no idea until that point.

The point is, £295 is a MASSIVE sum to me. If im buying a shared ownership proerty - chances are my income isnt *that* high, if you get my meaning. I dont have £295. Why should I pay for something that was hidden from me? If they had told me up front I would have said I will go elsewhere.

Mortgages Inc, I have not signed anything yet. I have the documents here to send back (which I wont be, unless the £295 is waived!)

MortgagesInc

Is it the actual Mortgage Offer you have had, or an Agreement in Principle? Also, the documents you have to sign - do they include the application/declaration forms. If you already have the offer, then there shouldn't be any issues with not agreeing to the fee. If you haven't submitted the application yet, then MAB would probably not process the application, but there would be nothing stopping you using an alternative fee free broker for the same Leeds mortgage

MBM

Yet another complaint about a broker, they seem to be increasing. Write a letter of complaint to MAB stating that you were not told about these fees and that they were sent after the credit search and offer had been carried out. Their Key Facts should have been given to you before they even carried out a fact find. Let them know that if you do not get satisfaction you will complain the the FSA. You may also want to speak to Leeds Building Society to see if you can go directly to them. Once again, another reason why you should try to research your own mortgage as the only person you can really trust to look out for your best interests is you.

Conrad

As I have been argueing for some time, fees free brokers are usually (not always) under more pressure to sell insurance that fee charging brokers.

No such thing as a free lunch and all that.

I suspect the mortgage sum involved here is small and there is no guarantee the deal with complete. I find it hard to see how any professional broker would put in time and effort and risk his PI cover for the sake of a mortgage commision that 'might' be paid.

MortgagesInc

If he's a professional broker how is he risking his PI cover?? If that's the way a fee charging broker approaches business - am I going to get a complaint/claim - then I'm glad we don't charge as we prefer to think - how can I help this client??? Very immoral I guess

RubyShoes

It just gets worse - In the post today, I have recieved the new keyfacts, with my correct name on.

However, thanks to having a brain, I checked all the details AGAIN. This time, the mortgage is a different one to the original (all I asked for was my correct name!) instead of a 79950 loan over 35 years in a repayment with LBS at 2 years fixed rate 5.64% (monthly payment £445.79) I have got a 79950 loan over 25 years on a repayment with LBS at a 3 year fixed rate of 6.89 %:shocked: (monthly payment £566.06)

!!!!!! is going on? Ive tried calling the adviser - because this all needs sorting ASAP. Suprise suprise, just getting his voicemail... Left messages to call back, and nothing has been heard.

I think Ive just lost £250 on my reservation fee. I dont think Im going to be getting a mortgage

zappomatic

The broker sounds slightly incompetent and dishonest. If you haven't signed or paid for anything, take your business elsewhere and tell the new broker that you've heard about this Leeds deal (but maybe not say another broker found it for you).

At the moment I'm arranging a shared ownership mortgage through http://www.shared-ownership-network.com/ and so far they seem very quick and helpful. I'm at the stage where the lender (Woolwich) is carrying out the valuation etc.

I was able to get key facts illustrations and an agreement in principle by email the same day and you can track your application online. Once we'd decided which mortgage to go for I gave the go ahead for a credit check and got the results within a couple of hours. Because of the postal strike they've even allowed me to submit certain documents by email or fax just to get things moving (though I do still have to send them originals).