Am I being taken for a ride?

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  • Tinfoilhat
    Tinfoilhat Posts: 6 Forumite
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    Quick update, I sent an email detailing my intentions not to proceed any further outlining the cost as the main reason and asking for a refund of already paid funds to the main broker.

    Received a reply from the chap I dealt with last week offering to refund the fee already paid and to reduce the final broker fee to £1000 for the purpose of continuing, rather then lose on the time this has taken to date?

    He also states the excessive fees charged are necessary and lowering the cost charged on high st mortgages is not viable to ensure the nontinuation of business!?

    Not 100% sure where to go from here however I am convinced we may get a better deal/interest rate somewhere else so will be exploring that avenue before I make any decisions.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    It seems they are happy to continue with the transaction based on the procuration fee paid by aldermore and the final broker fee reduced to £1000, saving you 2.5k.

    I don't agree with what he said about the "excessive" fees - I think that is opportunistic rather than necessary - unless they have a very large firm with limited productivity and high overheads - but that really isn't your problem. The fee's were not competitive.

    The question you need to be asking yourself is

    1. do you want to start all over again and will your purchase be jeapordised if you change lenders at this stage?
    2. Is it worth it in terms of financial gain to look for another, cheaper deal?

    There is nothing stopping you asking another broker to double check if there is a better deal available but make sure the new broker knows that they are competing against in terms of rates etc. Only fair. Also ensure that the new broker does not charge an upfront fee for doing the research - most brokers charge the fee at application stage, but do not be suprised if they do not confirm who the lender actually is until you've paid the fee. All brokers get people "shopping around" and have to take measures to ensure that clients are genuinely wanting to do business with them.

    HTH

    MM
    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.
  • ACG
    ACG Posts: 23,729 Forumite
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    £1k is still high for that type of case. To put it into perspective, you have MortgageMamma who has said she would charge £275 (which I personally think is very low), our fee would be between £500-750 depending on the rest of the case, probably towards the lower end because of the commission.

    So they are still high.

    But as has been said, do you start from scratch or just crack on. It does worry me when any company (not just brokers) come up with a high fee and then reduces it by 60% or more when you question it. I think of window salesmen. I would also be questioning whether they went straight to Aldermore or did some research on the high street first.

    We are a brokerage that does specialise in adverse and last year, most of our cases went on the high street.
    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.
  • butterflybook
    butterflybook Posts: 125 Forumite
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    Those fees are extortionate - For a case such as yours i would say between £500 and £750 is about right more closer to the £500 mark as your adverse is not too bad. Really awful that other brokers charge these types of fees and the fact they have not been upfront about them is even worse! I would worry what else will go wrong in the process if i were you
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
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    Tinfoilhat wrote: »

    He also states the excessive fees charged are necessary and lowering the cost charged on high st mortgages is not viable to ensure the nontinuation of business!?


    he undermined his own argument by offering the discount.
  • MortgageMamma
    MortgageMamma Posts: 6,686 Forumite
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    ACG wrote: »
    £1k is still high for that type of case. To put it into perspective, you have MortgageMamma who has said she would charge £275 (which I personally think is very low).

    Yes so do I, but I work for a small brokerage in Buxton and they set the fees I don't. I would like to be charging £395 ideally!
    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.
  • ACG
    ACG Posts: 23,729 Forumite
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    Still on the low side for some of the adverse lenders.
    With someone like Kensington, it must be below NMW :P (only messing).
    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.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    name and shame
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Tinfoilhat
    Tinfoilhat Posts: 6 Forumite
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    Quick update, been referred to a broker much closer to home; got appointment in person on Monday at their offices which I find much more reassuring after the experience we have had.

    Fee £500 and is only payable on a successful offer of a mortgage. Told her of my experience with previous broker which left her speechless!!

    Now just to get my initial payment back from broker number 1.....will be prepared to name and shame them if they are not very accommodating in refunding me.

    Thanks everybody I’ve received some very sound advice on here.
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