Possible negligence from my mortgage broker

SpiderLegs

RyanWills94 said:

All figures of losses have been sent, can’t forecast what we would lose moving forward, far too many variables as I have agreed with everyone, complaints handler will investigate, the mortgage broker thankfully has owned up to his mistakes which surely is a good thing? 

What are the figures?

haras_n0sirrah

"Under the affordable housing scheme there was never any early repayment charges and it’s something that the broker should know"

Just pointing out that there are early repayment charges on Leeds products. Whether they would be applied in circumstances you describe is one thing but saying their shared ownership products don't have early repayment charges is incorrect and I wouldn't want someone who has one and wants to change to a different lender to think they don't have an erc to consider.

RyanWills94

haras_n0sirrah said:

"Under the affordable housing scheme there was never any early repayment charges and it’s something that the broker should know"

Just pointing out that there are early repayment charges on Leeds products. Whether they would be applied in circumstances you describe is one thing but saying their shared ownership products don't have early repayment charges is incorrect and I wouldn't want someone who has one and wants to change to a different lender to think they don't have an erc to consider.

If they are purchasing the rest of the property with the same lender, there’s not a single penny to pay.

payless

I don't doubt that, but
1. if this information was not on the original KF/offer is he liable for advice outside of that documentation

2. Was he giving regulated advice at the (later) time anyway.. had you even engaged him

ACG

payless said:

I don't doubt that, but
1. if this information was not on the original KF/offer is he liable for advice outside of that documentation

2. Was he giving regulated advice at the (later) time anyway.. had you even engaged him

As a broker, if what Ryan is saying that the ERCs would not have been charged then the broker is 100% in the wrong (in my opinion). If any of my customers call me up to pick my brains or even none customers, I have to be careful about what I am saying... You dont know if the numpty (joking) is secretly recording you, but in reality whatever we say can easily be taken as advice regardless of whether or not it is, that is the regulated world we live in. 

I have taken what Ryan has said as gospel and if that is the case, this broker and the network are going to have to put their hands in their pockets because he has made a mistake. If he has said the ERCs would be chargeable and they would not, then he should have checked that with Leeds, if the broker checked and was told that, then I suspect the bill will be passed on to Leeds. The only thing I have ever said is that they are not just going to put up the extra 5% that is needed to now be able to purchase the property. 

Ryan, it is good that the broker has held their hands up but it could have been far more damaging to their career if they had lied and tried to hide it. It also potentially means you may go back to them down the line... You might not, but in fairness we all make mistakes. It is all about what happens next as to whether you deal with them again or not in my mind. The broker cant resolve the issue, he has to let openwork do it, but I do think you will get some compensation, I am just not sure what that will be. 

RyanWills94

ACG said:

payless said:

I don't doubt that, but
1. if this information was not on the original KF/offer is he liable for advice outside of that documentation

2. Was he giving regulated advice at the (later) time anyway.. had you even engaged him

As a broker, if what Ryan is saying that the ERCs would not have been charged then the broker is 100% in the wrong (in my opinion). If any of my customers call me up to pick my brains or even none customers, I have to be careful about what I am saying... You dont know if the numpty (joking) is secretly recording you, but in reality whatever we say can easily be taken as advice regardless of whether or not it is, that is the regulated world we live in. 

I have taken what Ryan has said as gospel and if that is the case, this broker and the network are going to have to put their hands in their pockets because he has made a mistake. If he has said the ERCs would be chargeable and they would not, then he should have checked that with Leeds, if the broker checked and was told that, then I suspect the bill will be passed on to Leeds. The only thing I have ever said is that they are not just going to put up the extra 5% that is needed to now be able to purchase the property. 

Ryan, it is good that the broker has held their hands up but it could have been far more damaging to their career if they had lied and tried to hide it. It also potentially means you may go back to them down the line... You might not, but in fairness we all make mistakes. It is all about what happens next as to whether you deal with them again or not in my mind. The broker cant resolve the issue, he has to let openwork do it, but I do think you will get some compensation, I am just not sure what that will be. 

Thank you for that, needed it after a lot of negative comments haha! What I’ve said is what I’ve been told by Leeds, it takes 10 minutes to call through to a bdm to find out what’s what and he’s not done that. I now have to wait for the complaints handler to get back to me with a resolution. 

payless

ACG explains what is good practice, although that does not answer the questions I raised as to a liability. 

RyanWills94

payless said:

ACG explains what is good practice, although that does not answer the questions I raised as to a liability. 

If he was advised incorrectly than Leeds would then be liable, we pay for brokers/financial advisors because we may not no certain areas, or feel comfortable paying for expert advice. If I wanted to go self execution I would have chosen that avenue. regardless I was given incorrect advice, consequently has now put me in a predicament... 

payless

So you were happy ( and paid?) with the arrangements in 2018 for which you engaged and completed with the advisor.  What terms of business did you have for “advice” in 2019?

Will the “advice” to wait be deemed as being regulated advice .
 ( penalty free could have opened up other lenders)

ok the broker here had some ( dated) customer info, but would a broker on here ( if not formally engaged)  be deemed as liable if also giving incorrect info ? 

Although it maybe that an adviser or his network will just want it to disappear

ACG

payless said:

So you were happy ( and paid?) with the arrangements in 2018 for which you engaged and completed with the advisor.  What terms of business did you have for “advice” in 2019?

Will the “advice” to wait be deemed as being regulated advice .
 ( penalty free could have opened up other lenders)

ok the broker here had some ( dated) customer info, but would a broker on here ( if not formally engaged)  be deemed as liable if also giving incorrect info ? 

Although it maybe that an adviser or his network will just want it to disappear

I think you are misunderstanding the way our industry works. 

If you picked up the phone to me tomorrow and asked who the best lender was and I replied saying ACG Bank, if that resulted in you making an application and losing money, I would be liable for that because I have not obtained enough information to make the assessment - and in this case, neither has the adviser. 

I do not know where a broker would stand on here for giving advice which is why my answers are usually generic. It is pretty rare you will see me name a lender, thats not because I am being awkward but because I dont want to run the risk.