Reclaim mortgage broker fee

PrincessMellie

I am not really sure if this is possible... 

Effectively, we have had a broker for our mortgage. They managed to get us a mortgage for a property but we had to pull out because the property was not habitable. Allegedly the mortgage company would have still lent but it had severe structural issues and would have taken tens of thousands to fix before it was livable. 

We are now looking at another property but they have directly stated that we cannot purchase it through a 'normal' mortgage which is what they have access to. I have managed to find a lender who would potentially do it (who specialise in unique properties) but therefore we cannot complete with this particular broker. They cannot (or will not) find us a mortgage to purchase this onward property.

Is there any opportunity for a refund or partial refund as it seems to me that they did not find us a mortgage for a successful property and the mortgage they did find, while still on the table at this time as a mortgage in principle cannot be used against the property we want to buy so... it is worthless. 

easy

I think it all depends on the terms you accepted when you signed any of the broker's paperwork and/or made your payment to them.  
You did read the contract before you made payment,  didn't you?

PrincessMellie

I am trying to locate them but I just wondered if anybody has ever had any success with doing that or if they just called it a day and let it go? 

Hoenir

What were the terms of business you entered into with the broker. Broker's have costs and expenses to cover. Their charging structure will reflect the manner in which they conduct their trade. 

ACG

It really does depend on the terms. 
As an example, we charge out fee on full offer of a mortgage. Had we received the offer, our fee would have been chargeable. Had you decided not to proceed, thats on you as you came to us for a mortgage and we got you one. 

Now if you decided not to proceed because issues cropped up with a survey or the legals, we would happily transfer it over to a new property or reapply with no further charge. 

Would we refund you because you had found a new property which we could not help with? Probably not. Had that been the first property you found we would have backed out, wished you well and no costs incurred - but also no work carried out by us. 

Put the shoe on the other foot, if you went into work and did your job but your boss said actually we dont need that anymore - would you still want paying? 


But that does not mean all brokers are the same.
When does fee become chargeable? Some brokers charge on application, some on offer (like us) and some on completion. 
If it was on offer, you said they could allegedly get an offer - but did they get one? If not, then I would argue the fee should be refunded. 
If they charge on application, then the fee is chargeable even if the lender declines the application. 

You need to know what the brokers terms are. Nobody can answer your question without knowing that. 

housebuyer143

If the terms are payment on offer and you got an offer, even if it's subjected to conditions you will probably have to pay. This is the same if it's payment on application. 
Some brokers do payment on completion and in this case no fee would be due. You need to find out which one you agreed to.