Life Insurance

Noobie2011

Hoping someone could help.

We are due to exchange contracts next week so looking at getting our insurances in place etc.

We are pretty much covered on the Building/Contents as get a discount through my wifes work but up until we parted ways with our broker he was helping in the Life Insurance aswell as a Mortgage.

Long story short we parted ways as he gave us wrong advise in a few occasions and in the end almost lost us our new build due to him advising we could not pass an AIP with Halifax due to an address change and not on the electoral roll(basically sold our house and moved in with parents for a few months). As I was sceptical I went to Halifax direct myself and we flew through and AIP and application as as above 3 weeks later we are about to exchange so what he was doing god knows.

Now through the process we paid him £250 to work on the Mortgage and also signed something that said a further fee would be waived if we took Life Insurance via him so at the time a no brainer. Now we have parted ways Mortgage wise he said he presume we are still doing the Life Insurance with him as signed the waiver fee agreement. I had no problem doing the Life Insurance through him until he said this and almost subtly implied we were bound to hom for Life Insurance.

Anyone know our stance here as I was happy to leave it all and not even complain he nearly lost us the house and move on as not worth it but now he has said this it makes me feel a bit annoyed he has the liberty to tried and hold us to something when he did a terrible job to be honest.

Got a call later tonight with him so hoping someone can advise

amnblog

Depends what the terms said.

If you engaged him to assist you and entered into a contract to pay fees you are bound by that even if you decided to bail half way through.

It depends when these fees were due. If any were due on offer, he never took you to offer.

I don't hold with the whole we won't charge this if you buy that nonsense.

If your fees are xxx make your service worth xxx and the Client will pay.

Advising and arranging LA is another task.

csgohan4

I usually avoid mortgage broker's products, no harm in comparing with other online life assurance broker not add on commission based mortgage brokers

Noobie2011

Just read it and it was a Fee Waiver agreement which states we agree to let him arrange the insurance for us and the binding points are:

1. The fee is agreed at £995
2. The fee will be waived
3. The fee will come into effect if the insurance is not taken up or cancelled within 6 months

So I can see under normal circumstances we are bound by the above and may have no case as not linked to the mortgage. but as he did such a bad job on the mortgage and almost lost us the house which was not through normal circumstances of lenders saying no and him trying but more incorrect info on applications and incorrect advise about a certain lender I thought there may be a case there to say out of goodwill of us not complaining and taking it further they do not hold us to the waiver.

I mean what are other brokers views on this. Would you expect to maybe hold a client to things that link to a mortgage if you have been unable to get a client a mortgage through bad practice and advise?

ACG

I am with AMN, our fees are not linked to life insurance, I do not agree with it either.

However, if you agreed to pay a fee at a certain stage and you passed that stage in the process the fee is due. That being said, if they have been very poor throughout you have to wonder where they get the balls from to then try and tie you to a policy.

It could be worth asking him what his complaints procedure is with regards to the mortgage. You feel a little bit miffed that you are being tied in to a contract despite him being useless and making various mistakes.

minimike2

There must be more in the agreement than that?

I have never seen a fee waiver just for life cover before.

Noobie2011

ACG wrote: »

I am with AMN, our fees are not linked to life insurance, I do not agree with it either.

However, if you agreed to pay a fee at a certain stage and you passed that stage in the process the fee is due. That being said, if they have been very poor throughout you have to wonder where they get the balls from to then try and tie you to a policy.

It could be worth asking him what his complaints procedure is with regards to the mortgage. You feel a little bit miffed that you are being tied in to a contract despite him being useless and making various mistakes.

It looks like the document is not linked to us gwtting an offer or proceeding to any stage although it is linked in the fact we would not be taking out life insurance unless we were getting the mortgage and he has not provided that so a bit like reading between the lines etc.

If we had of told him we were not getting our own mortgage then I would have been surprised if he tried to bold to Life Insurance as we would not need it.

Maybe just need to leave it and go with him as up until the email that sound very demnding as in you have a signed agreement I was probably happy to go with him for life insurance as the figures he quoted are correct whwn I search and surely he cannot mess up life insurance!!