Being hassled by Mortgage advisor

ACG

Sistergold said:

ACG said:

Sistergold said:

I know I know it’s an expensive alternative BUT to keep relations sweet I have taken some of the suggested policies and ditched them after a month or two. That way I know the deal is done. I just take it a few insurance instalments is not the end of the world given I am already spending hundreds of thousands of pounds. Brokers can really get argie and funny about add ons. I just choose some refuse flat out some under the argument that I don’t need the particular ones. That way they tick all their boxes. That’s just me not wanting to go down the complaints root as I might need them. Just choose your battles is all I am saying. 

Oh god, dont do that!

1) The broker has done a load of work and then had a clawback of the commission. When I was starting out as a broker, I had a client call me for a policy. I did it for him, he cancelled it after 6 months. I didnt do the hard sell that is not in my nature. But I basically had an income one month that I then had to find 6 months later to pay back. So not only did I only earn about £3, I travelled to his home twice and I spent about 3-4 hours doing the work (in addition to travelling). 
2) Some brokers will put a clause in your paperwork that says if the policy is cancelled during the clawback period, you have to pay them for lost earnings. On a £30 policy, that can be £600 you might have to pay back. If this broker is trying to force something on you do not want, it would not surprise me if this was the case here. 

Good advice, is there no cooling off period with these policies?

Some brokers ask you to sign a document which will state you are liable for any clawbacks. Whilst the policy itself does have a cooling off period the contract with the broker probably wont. 

I dont think many brokers have that sort of contract in place, but if the broker is prepared to threaten your mortgage offer over insurance it would not surprise me if they were one of them. Ultimately the broker would be pretty silly to cancel the mortgage over an insurance policy. It means the work they have done is wasted, they risk reputational damage (ie complaints on google/trustpilot etc) an actual complaint which in the current climate with rising interest rates could cost them quite a bit. It makes no sense.

Sistergold

I will have explained I don’t need the said policies and the pressure goes on. No “I don’t despise the broker”.  Maybe I was not clear I did mention that the amounts IN MY OPINION will not be a big deal in the grand scheme of things. In a situation where there is too much pressure depending on where we are in the mortgage process I can cancel the services of the broker which I have done before or I can go ahead take some of the polices to my choosing. I can pay for a year or whatever and I WILL CANCEL THEM IF I CHOOSE. I can also decide I want to keep them. After some months or years I can also cancel them or keep going with them. 🤷‍♀️ I am not saying the OP should of this, I said I have done it that way before so that the broker can tick whatever box is pressuring him to behave so unethically.

THIS IS NOT ADVICE I AM NOT A FINANCIAL OR MORTGAGE ADVISER. JUST AN EXAMPLE OF HOW I HAVE DEALT WITH SOME INSTANCES LIKE THE ONE OP ASKED ABOUT. JUST ANOTHER VIEW. 

kingstreet

Sistergold, I didn't quote you as my post wasn't aimed at you. It was a response more to ACG, but on the whole just a general observation and explanation.

martinbainbridge1975

which lender has the broker put the mortgage through? maybe worth a chat with them and say do you realise what your broker is upto

Pressure selling is also a no-no.  as stated above there should be some sort of demands and need statement which will suggest what products they recommend - you are well within your rights not to accept these at which point there should be a disclaimer for you to sign stating you understand the implications of not taking the covers and end of matter upon signing that