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  • FIRST POST
    • Londonlassie
    • By Londonlassie 14th Jun 19, 6:59 PM
    • 8Posts
    • 5Thanks
    Londonlassie
    Mortgage advisor charging for life insurance
    • #1
    • 14th Jun 19, 6:59 PM
    Mortgage advisor charging for life insurance 14th Jun 19 at 6:59 PM
    Long post alert!

    Iím currently in the process of buying a house and have used a mortgage advisor from a high street firm.

    Itís been problem after problem with him and Iím at the end of my tether, my original mortgage offer took 5 weeks to get to my solicitor because he put the vendor solicitors details on the application form so they received the mortgage offer instead of my solicitor. It took weeks of chasing to get him to confirm the problem (GDPR breach anyone?!) and then I got a whoops sorry as an apology. Then when the solicitor finally received it the details were all wrong. They said we were being gifted a deposit which was incorrect. We had saved hard for it ourselves and I think that this stopped us getting the fix we wanted and costing us an extra £78 per month!

    Prior to this all happening he did us a life insurance quote for us but company said they needed to get a report from my partners doctor before they could issue the policy. They sent out a letter asking for his consent whilst all the above problems were going on... We then deceived not to go with the policy because we couldnít be 100% certain the details would be correct as we had lost total faith in him!

    Fast forward to me telling him we had decided not to go with the life insurance and he now says he will be charging us £750 for the pleasure of getting a quote that had not been agreed or signed upon by either party. I donít remember signing anything that says we agreed to pay out if we didnít go with them?.

    Thoughts? Can they make us pay this?

    Thanks for reading my loooong post lol
Page 1
    • HampshireH
    • By HampshireH 14th Jun 19, 7:03 PM
    • 1,831 Posts
    • 2,381 Thanks
    HampshireH
    • #2
    • 14th Jun 19, 7:03 PM
    • #2
    • 14th Jun 19, 7:03 PM
    Check the terms and conditions of whatever you have signed / he advertises.

    Does he have a list of his fees on his website?

    £750 is beyond a joke but if thats his advertised rate and you then engaged him to work on your behalf........

    He sounds completely incompetant. If he does have such outrageous fees its probably because he relies on them to provide a payday when people refuses his services
    • Londonlassie
    • By Londonlassie 14th Jun 19, 7:14 PM
    • 8 Posts
    • 5 Thanks
    Londonlassie
    • #3
    • 14th Jun 19, 7:14 PM
    • #3
    • 14th Jun 19, 7:14 PM
    I can’t find an agreement! And I know we were told it was no obligation but I’m not sure if that changes because he started the application on our behalf. Their website says that they ‘usually don’t charge a fee for life insurance advice’.

    He is completely incompetent and I would have no faith a life insurance policy application written by him would even pay out in the end! Maybe I’ll just have to start shouting about the breach of my personal financial information but I definitely don’t want to pay for his service when the on,y reason we are pulling it is because of the issues with the mortgages! Thanks for your reply. I am majorly frustrated!!!!
    • HampshireH
    • By HampshireH 14th Jun 19, 7:26 PM
    • 1,831 Posts
    • 2,381 Thanks
    HampshireH
    • #4
    • 14th Jun 19, 7:26 PM
    • #4
    • 14th Jun 19, 7:26 PM
    Ask him in writing for an itemised breakdown of costs.

    Would be very interesting to see which bit of the process he is charging such a high amount for.
    • Londonlassie
    • By Londonlassie 14th Jun 19, 7:38 PM
    • 8 Posts
    • 5 Thanks
    Londonlassie
    • #5
    • 14th Jun 19, 7:38 PM
    • #5
    • 14th Jun 19, 7:38 PM
    Yeah that’s a good idea. Maybe I’ll counter charge him for wasting so much of our time throughout the process!
    • letitbe90
    • By letitbe90 14th Jun 19, 8:03 PM
    • 332 Posts
    • 382 Thanks
    letitbe90
    • #6
    • 14th Jun 19, 8:03 PM
    • #6
    • 14th Jun 19, 8:03 PM
    He may be breaching regulations by not making fees transparent - fees was a huge part of training when I became a qualified FA years back. Threaten with FOS if they didnít send any communications which made the fees clear if they donít drop it.
    • Londonlassie
    • By Londonlassie 14th Jun 19, 9:27 PM
    • 8 Posts
    • 5 Thanks
    Londonlassie
    • #7
    • 14th Jun 19, 9:27 PM
    • #7
    • 14th Jun 19, 9:27 PM
    Thank you! I’ll let you know the outcome
    • kingstreet
    • By kingstreet 15th Jun 19, 6:21 AM
    • 35,515 Posts
    • 19,419 Thanks
    kingstreet
    • #8
    • 15th Jun 19, 6:21 AM
    • #8
    • 15th Jun 19, 6:21 AM
    Was "free" mortgage advice conditional on you purchasing protection products and keeping them for a certain period of time?

    Read the terms of business or initial disclosure document which should have been provided at the outset of the relationship to see.

    BTW the source of a deposit (gift v savings) would not normally have any impact on the rate offered unless the gift was from an unusual source (donor/location).
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • Londonlassie
    • By Londonlassie 27th Jun 19, 9:32 PM
    • 8 Posts
    • 5 Thanks
    Londonlassie
    • #9
    • 27th Jun 19, 9:32 PM
    • #9
    • 27th Jun 19, 9:32 PM
    Just an update for those who replied - I asked for a signed agreement and there has been radio silence since! Obviously a shaded attempt at trying to force us to go with it ��
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