Mortgage Broker Complaint

123imp

JMA74 said:

yeah this sounds like trying to fob you off.  Lenders do bend criteria occasionally but someone like HSBC it is unlikely especially when the criteria is so clearly spelled out.  Tends to be for smaller lenders who arent working off an approved criteria 

If they submitted your application hoping for criteria to be bent then they should have warned you that you dont technically fit criteria but they will try to argue the case.  Or they should have some evidence that they spoke to someone at hsbc who confirmed they would take a view.  
If i had this and wanted to get a different calculation I would have sent it to my business development manager who would have sent it for a pre-underwrite.  Only then would i submit an application.   

Re them being out of pocket.  Irrelevant.  Their decision to not charge you a fee on application.  I had a case collapse this week due to survey that was worth nearly £3k in my pocket.   Can you imagine if the client called me to tell me they were pulling out and I started whinging about not earning anything from the case.  

Ask them to reply in writing btw. Their attitude so far doesnt fill me with confidence that they wont backtrack later.   If they try call after you ask them to put it in writing you can just ask again and hang up. Email them with 'thanks for the call, as confirmed i would like all correspondence in writing so can you please respond to my complaint in writing' 

Thanks.

I'll make sure to ask for all correspondence in writing from now on, especially if they try to call to give me a response to the complaint.

ACG

If they discussed the case with HSBC and someone at the bank said it is all fine, then it is HSBCs fault in my opinion. But if that were my case and it had been declined because of something I had checked, I would have thrown my toys out and gone mental to fight your corner. 

123imp

ACG said:

If they discussed the case with HSBC and someone at the bank said it is all fine, then it is HSBCs fault in my opinion. But if that were my case and it had been declined because of something I had checked, I would have thrown my toys out and gone mental to fight your corner. 

I have now received an emailed response from the broker. They say they have referred me to their mortgage network, who will carry out an independent investigation. This could take up to 8 weeks. The mortgage network has emailed me with quite a professional looking letter, they've set out the timeline and what they're going to do next. They also supplied an email for any evidence I want added to the file. 

JMA74

That's good.  Taken out of their hands now. 
Sounds like their first response was an effort to avoid it being registered as a complaint.

ACG

123imp said:

ACG said:

If they discussed the case with HSBC and someone at the bank said it is all fine, then it is HSBCs fault in my opinion. But if that were my case and it had been declined because of something I had checked, I would have thrown my toys out and gone mental to fight your corner. 

I have now received an emailed response from the broker. They say they have referred me to their mortgage network, who will carry out an independent investigation. This could take up to 8 weeks. The mortgage network has emailed me with quite a professional looking letter, they've set out the timeline and what they're going to do next. They also supplied an email for any evidence I want added to the file. 

Thats good. 

The network will look at it more independently. 

123imp

JMA74 said:

That's good.  Taken out of their hands now. 
Sounds like their first response was an effort to avoid it being registered as a complaint.

ACG said:

Thats good. 

The network will look at it more independently. 

Ah right, that's interesting, I wasn't sure how to interpret it. Well, I hope they are fair and impartial.

Now that I have received that response, I do have a query which I would be pleased to receive advice on. I have now found another property to purchase and had an offer accepted. I'm wondering if I should go directly to another broker, or wait and see if a proposed resolution is as @ACG mentioned previously - organising the new mortgage and paying the difference in monthly payments. I am worried that by dragging my heels the sellers could choose to go elsewhere.

Thanks.

ACG

123imp said:

JMA74 said:

That's good.  Taken out of their hands now. 
Sounds like their first response was an effort to avoid it being registered as a complaint.

ACG said:

Thats good. 

The network will look at it more independently. 

Ah right, that's interesting, I wasn't sure how to interpret it. Well, I hope they are fair and impartial.

Now that I have received that response, I do have a query which I would be pleased to receive advice on. I have now found another property to purchase and had an offer accepted. I'm wondering if I should go directly to another broker, or wait and see if a proposed resolution is as @ACG mentioned previously - organising the new mortgage and paying the difference in monthly payments. I am worried that by dragging my heels the sellers could choose to go elsewhere.

Thanks.

With the phone call you received I would say go elsewhere. 

This could have been one of those scenarios where they get it wrong, but they turn it around and make you a customer for life by doing the right thing. Mistakes happen, its how you deal with them that makes the difference. 

You can still evidence how much more it costs, it will just be using an offer from a different broker.

123imp

ACG said:

123imp said:

JMA74 said:

That's good.  Taken out of their hands now. 
Sounds like their first response was an effort to avoid it being registered as a complaint.

ACG said:

Thats good. 

The network will look at it more independently. 

Ah right, that's interesting, I wasn't sure how to interpret it. Well, I hope they are fair and impartial.

Now that I have received that response, I do have a query which I would be pleased to receive advice on. I have now found another property to purchase and had an offer accepted. I'm wondering if I should go directly to another broker, or wait and see if a proposed resolution is as @ACG mentioned previously - organising the new mortgage and paying the difference in monthly payments. I am worried that by dragging my heels the sellers could choose to go elsewhere.

Thanks.

With the phone call you received I would say go elsewhere. 

This could have been one of those scenarios where they get it wrong, but they turn it around and make you a customer for life by doing the right thing. Mistakes happen, its how you deal with them that makes the difference. 

You can still evidence how much more it costs, it will just be using an offer from a different broker.

Thanks for this. I will find another broker, although I am certainly more wary than last time I was searching for one.

123imp

ACG said:

123imp said:

ACG said:

If they discussed the case with HSBC and someone at the bank said it is all fine, then it is HSBCs fault in my opinion. But if that were my case and it had been declined because of something I had checked, I would have thrown my toys out and gone mental to fight your corner. 

I have now received an emailed response from the broker. They say they have referred me to their mortgage network, who will carry out an independent investigation. This could take up to 8 weeks. The mortgage network has emailed me with quite a professional looking letter, they've set out the timeline and what they're going to do next. They also supplied an email for any evidence I want added to the file. 

Thats good. 

The network will look at it more independently. 

Hi,

Just wanted to provide an update on the Mortgage Broker complaint. 

I received my final decision letter from the Mortgage Network, my broker acts under, today. They rejected the complaint. I am not sure if this is standard practice, and they would prefer these complaints go to the Financial Ombudsman.

The gist of the decision was that, in their words, the mortgage broker had asked the lender (HSBC) if they would consider "non-standard underwriting" - without actually specifying to me the exact nature of the non-standard underwriting.

They have not provided any evidence this communication took place between the broker and the lender, and the broker didn't say anything to me at the time - such as "I have confirmation from the lender of such and such".

Regardless, in my eyes this would only be relevant if they specifically asked if the application would be considered on last 12 months wages, rather than latest P60. 

What hasn't been explained, if this was the truth, is why the lender kept on asking for more documentation in relation to the P60 if they weren't assessing the application based on the P60. The letter keeps on stating that the lender cancelled the application because they didn't receive further documentation in relation to the P60, this appears to be at odds with the statement about communication with the lender.

What are my chances now with the Financial Ombudsman, are they usually good with this stuff?

Thanks.

ACG

If there is evidence that the broker had it agreed you would be underwritten on special terms and were then declined, I would agree in that the broker is not at fault and so then your complaint goes to HSBC, although I am not sure how that would play out as they had no direct contact with you. 

Ask the network if you can provide the confirmation from HSBC that you could be underwritten on "non standard underwriting".