Broker disappears - can you continue mortgage application?

zacepi

Let's say that you are dealing with a mortgage broker who has arranged a mortgage with HSBC and everything is proceeding normally, and you've paid for a valuation/homebuyer survey.

Then you can't get hold of the broker - he has disappeared completely (with your money).

Ignoring for a moment the theft/fraud. You then go to another broker, can they continue with the HSBC mortgage or will he need to start a new application again completely?

kingstreet

New app.

What money has the broker disappeared with? What did you pay them?

zacepi

Hi - thanks for the reply. This isn't actually me so I am only hearing this second hand, but apparently the survey fee and a broker fee.

I've never used a broker so not sure if it's rare to have to pay a fee up front?

ACG

The survey fee went to the lender and if that has been carried out/booked in then that money went where it was intended.

The broker fee is obviously a different issue and can be sorted out later.

If the application has been fully submitted, rather than find a new broker and start from scratch. I would just call the lender for updates and ask them if anything is outstanding. Hopefully the broker submitted the application and initial documents meaning the bulk of the work is done and it will just be any follow up documents they may need.

In terms of the broker committing fraud/theft, it is a little early to say that. They may be lying in a hospital bed or a morgue somewhere.

Priority id getting the mortgage sorted, everything else can be dealt with after.

zacepi

ACG wrote: »

The survey fee went to the lender and if that has been carried out/booked in then that money went where it was intended.

That was the problem I think - the fee was paid and 6 weeks later the survey still wasn't arranged so the fee never went from broker to lender.

Agree about priorities - thanks for the answer ACG. I still have unhappy memories of your brother, BCG.

ACG

I am not sure we (brokers) are allowed to take money for customers valuations. I know I am not allowed to hold clients money for any period of time. I remember once having a customer who did not have a debit/credit card so could not pay for a valuation.

I asked them to pay me and I would pay it for them (as a one off). My compliance people told me that I would have to pay for the valuation first and then the customer reimburse me.

Have you checked that the company is legit on the FCA register and they are still trading on companies house?

(Im not sure I get your joke, I think it has gone above my head).

kingstreet

zacepi wrote: »

I still have unhappy memories of your brother, BCG.

Uncles CCG & ECG aren't too bad though...

zacepi

We all had one of these at school ACG, and I still have the scar

https://en.wikipedia.org/wiki/BCG_vaccine

Thanks for the answer, there's more to this story I feel, but as I said I'm getting it second hand.

ACG

Gotcha!
I remember some kid in our school hitting his arm after having it done thinking he was hard and clever... until he fainted. He was the type of person who WOULD jump under a bus if you asked him to.