Mortgage broker asking for fee without application confirmation

ffx003

Hi all,

Hope you are all well. As part of my help-to-buy house search, I have been in discussion with 2 mortgage brokers to proceed with my mortgage application. One of the mortgage brokers was a no-fee application while the other included a 299£ broker fee upon application (non-refundable). 

About 3 weeks ago, I had a discussion with the mortgage broker on phone while I was discussing with both brokers to get the best rate for me and she mentioned that it was the deadline that day to finalise the application. We had a conversation on that basis and she is telling me she has a recorded conversation of me telling her to proceed with the application, which would constitute a verbal agreement per her feedback. 

I had not given her a written confirmation to proceed with the mortgage application but had the following written email discussion with her after our phone call asking her several questions on the mortgage application:

"Me: I am in back to back meetings for next hours but can i get your response on the below please:

-Confirmed that we can reduce the term to 25 years after application without change in terms

-Is there any additional benefits as part of the mortgage offer like cashback, or deposit bonus or free property valuation?

-Does my fixed rates start from August-22 here or will they actually start upon completion on October-22? Would be good to find out as i am potentially missing fixed rate months there."

Her: The request to reduce the term has already been put through and I can only get you a written confirmation once they issue the offer.

There is free valuation with this product

The rate only starts from the completion date. The august 22 is set as a potential completion and is illustrative. So you will have 63 months of fixed rate from completion date.

Me: Thanks, can we check if we can get any incentives as part of our mortgage process if we open a deposit account with Barclays etc.? Like 500-1k cashback incentive on completion or something similar? Can move required funds as part of this if such option is available.

Her: No, I am afraid it does not work that way. Each Product  has their own pack of incentives. This one has free valuation, reduced product fee of 749 (usually is 999) and a reduced rate for being a green product due to EPC B of the flat. There are no further incentives even with having or not account with them."

I am now hearing from her after 3 weeks when i did not get an application confirmation from her and went ahead with the other broker (we did not have a conversation afterwards, I called her that evening and she did not get back to me with emails etc. the next day so I understood the application did not go through:

- That she has a verbal recorded agreement from me on phone
- That when she said "the request to reduce the term has already been put through" this meant the application took place. 

They are threatening to start legal action against me on this basis if i don't pay the mortgage broker fee but I was not even updated that the application was put in place and i did not receive an application confirmation document from them.

Checking citizens advice I see from their page below that I need to agree to the mortgage offer in writing. I have not explicitly agreed to the mortgage offer, the only relevant texts on this would be me saying we can proceed with the application on Monday if required after they had sent me the AIP. 

Appreciate your help on this as I don't understand why they would be charging me this amount with the lack of communication and no application confirmation.

citizensadvice.org.uk/debt-and-money/borrowing-money/types-of-borrowing/loans/credit-brokers/taking-action-over-credit-brokers/

ACG

Mortgage Brokers are not credit brokers, you do not have a 14 day cooling off period. 

Ask the broker for a copy of the recording which confirms you asked them to proceed with the application.
Ask for a copy of the application form - showing date of submission. 

If you provided confirmation you wanted them to submit the application and they then submitted the application - I can understand why they are invoicing you. But not being party to the conversation, I cant say much. Although I do wonder how it has got 3 weeks down the line and you have only just found an application has been submitted. There are times I can be a bit slow at communicating, but that is hours not weeks. 

You do not need to provide written confirmation for them to proceed with the application as far as I am aware. If you do, I have been doing it wrong for 11 years and that includes 3 compliance companies/networks not making me aware of it. 

K_S

@ffx003 As it involves a hard-footprint credit check, I always get permission for a full application submission from the client and imagine most brokers would do the same. As far as I can tell, the CAB guidance you've shared does not apply to mortgage broking.

I couldn't follow everything in your post but generally speaking if you feel that they went ahead with the application without your permission and that you don't owe them any fee as per the terms of business, then you can either ignore them or make a complaint asking them to stop bothering you.