Do I still have to pay advisor fee even though we are dropping out

 So essentially was looking to remortgage but the people acting on behalf of our new lender have been messing around and have said their are restrictions to our land registry (which we had to expedite because the country is a joke with new builds) 

Anyway they are requiring £5-600 for additional work, we already paid £100 for this to be looked into. Plus we would be on the SVR for another 2 months and pay over £600 more.

 The advisor fee is £295 and my sister who works there believes I still have to pay this even though we have not completed the remortgage and it’s not going ahead.

Mr sister says the fee is on submission of offer but that does not make sense. That offer has not got us over the line and we got the offer and have not paid the fee so surely like most mortgages you pay everything on completion? Anyone else experienced this?

Comments

  • dunstonh
    dunstonh Posts: 115,638
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    edited 16 January at 10:19AM
    Do I still have to pay advisor fee even though we are dropping out
    Depends on the contract and the point and reason for dropping out.

    Mr sister says the fee is on submission of offer but that does not make sense.
    It varies with brokers.  However, on application is a common point as by then the broker has done the bulk of their work.

    You will need to check the agreement which should state what the cancellation terms are.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • chanz4
    chanz4 Posts: 10,846
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    whats your contract say?
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • housebuyer143
    housebuyer143 Posts: 3,161
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    The advisor got you the offer and you don't want to pay them now - hardly fair. If the contract is pay on completion then you shouldn't have to pay, otherwise it's going to be due. 
    Are the restrictions going to need to be sorted at the next remortgage? If so, then you might at well do it now and pay the associated costs - otherwise weigh up the costs and go from there. Are you sure that solicitor isn't going to charge you for work done already if you drop out?
  • ACG
    ACG Posts: 23,612
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     So essentially was looking to remortgage but the people acting on behalf of our new lender have been messing around and have said their are restrictions to our land registry (which we had to expedite because the country is a joke with new builds) 

    Anyway they are requiring £5-600 for additional work, we already paid £100 for this to be looked into. Plus we would be on the SVR for another 2 months and pay over £600 more.

     The advisor fee is £295 and my sister who works there believes I still have to pay this even though we have not completed the remortgage and it’s not going ahead.

    Mr sister says the fee is on submission of offer but that does not make sense. That offer has not got us over the line and we got the offer and have not paid the fee so surely like most mortgages you pay everything on completion? Anyone else experienced this?
    You went to the broker for a remortgage. 
    They got you a remortgage. 

    Did you make them aware of this issue? 
    If you did, then no you should not have to pay.
    If you did not and/or were not aware of it, that is not the brokers fault. They obtained you a mortgage offer based on the situation presented to them. It is not their fault that was wrong. It may not be yours either, but they can not be blamed for not knowing something about your home especially if you do not know. 

    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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