I’ve been stupid

dondontheone

I’ve been really stupid and got myself into a mess.

adverse credit (though apparently it isn’t horrendous?) and applied through a broker (A) in February. Didn’t like any of the products they had so we have been going back and forth trying to get a good rate

meanwhile I secured an offer through another broker (B) but this was taking a long long time to process and I started to think it would ever happen 

broker A came back with a good offer and deeds were sent to me for signing. I didn’t sign or return them as I had a family emergency 

broker B’s deal is a lot better (saves 26k in repayments overall)

I didn’t realise that I had signed terms and conditions to say that A’s broker fee is payable even if I pull out. I’d signed in a blur while working under pressure. The fee is 2495 which was added to the loan but if doesn’t complete I guess that means I have to pay it.

I haven’t signed deeds with either lender but I have signed terms and conditions with the brokers 

im in such a mess and I don’t know what to do as there’s no way I can afford the broker fee, not at all. 

I can’t blame it on anything but myself and my own stupidity - I pretty much forgot about broker A given that it had been so long. That offer expired today as well

it is my fault, although in my defence I struggle with my mental health and was going through an abusive relationship at the time. (Sole application as we broke up and weren’t living together)

What on earth do I do? I’m worried I’ll lose my house somehow (sorry I have anxiety so worry about everything)

Newbie_John

Speak with brokers and see what they say - we're all humans. But by saying that, you agreed to pay for their work which they carried out.

Are you saying that you continued with Broker B? Is broker A chasing you with the fee?

dondontheone

I have continued with broker B, I am waiting for them to send the deeds out. Broker A has left
me a voicemail today to tell me their fee is due and it’ll be taken out of her hands (I assume her manager?)

I never intended for this to happen, I didn’t realise it would.. my own fault for not reading it properly but I’m really upset and worried. And now my anxiety is telling me I’ve signed deeds with them, but I absolutely haven’t as they have to be witnessed and my witness has been abroad on holiday.

MWT

dondontheone said:

The fee is 2495 which was added to the loan but if doesn’t complete I guess that means I have to pay it.

Are you sure that is just the brokers fee, and does not include a product fee for the mortgage?

ACG

What does the paperwork you signed actually state? 
Is the fee charged on DIP/Application/offer/upfront? 
If it is on DIP/Application, did you give them permission to obtain a DIP/or submit the application? 

If not, then it could be that they have been a bit trigger happy to get the DIP to charge you a fee - thats not your fault. 

dondontheone

Yes that’s just the broker fee. There is a lender arrangement fee listed separately which was also meant to be added to the loan. The 2495 is listed as broker arrangement fee

dondontheone

This is the document signed and the list of fees. I’m really confused at what stage it was done, I think I had a DIP with a different lender but they changed lenders as I wanted a shorter term. I think I signed this after DIP, it was right before I got the offer I think 

ACG

Its only due on offer of a Mortgage. 
If there is no offer, there is no fee by the looks of it. 

If there is an offer, they have done the factfind, they have verified and assessed your documents, they have done the research, they have submitted the application and they have received an offer. 

Thats a lot of things which need to happen (and you need to be involved in) to just be an oversight. 

Do you have a mortgage offer? (not a DIP, but a full offer). 

dondontheone

Yes I have the offer, they have actually emailed deeds for signing but I haven’t done that. due to my job (healthcare, unsociable hours too) it’s all been done via email apart from at the very very beginning, im just going through the email chain now. I can see where she emails me to submit the application to the lender etc, so I was aware of all that. I just wasn’t aware that I couldn’t pull out without still paying their fee. I thought I’d have a 14 day window but it seems not. I don’t know how I missed that on the form I signed. 

Im really really worried as I just can’t afford it and it’s making me feel physically ill. Im very stressed as it is and this isn’t helping. I know it’s my fault 

ACG

Put the shoe on the other foot, what would you do if you did a weeks work and then your employer said we no longer need that work you did - would you still expect to be paid? 

As a broker I could be seen as biased but we charge on offer of a mortgage. At that point I have delivered what I promised. I want paying for it - just like anyone would in their job. 

Not that it will change anything, but why could you afford it originally but now you cant? 

I dont think the brokers are in the wrong to want their payment. That last bullet point is pretty clear in my opinion. You gave them everything they needed to find you a product and then gave them permission to proceed.

Have you spoken to the brokers? You are going to stress more about it by avoiding their calls or emails. Speak to them, see what you can work out. Worst case scenario is small claims paperwork hits your doormat, they wont want to do that and you wont want that. 

dondontheone

I could afford it before because they were adding it to the mortgage. If I don’t take the mortgage they want it up front, and I don’t have 2495.

it’s a remortgage with extra borrowing so I don’t have savings or a deposit or anything 

I do understand what you’re saying, and if I was aware at the time I’d have pulled out sooner. I think it’s my fault as I didn’t read/understand it properly