Failed remortgage; still got a bill
Failed remortgage; still got a bill
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TheLordJohn

Original Poster:

5,746 posts

176 months

Thursday 28th September 2017
quotequote all
Hi all.

Just to clear the air, I have no problem at all with paying to receive a service. We've all got to make a living, that's fine by me.

I was recommended a mortgage broker to take my savings out of a house I own (which is let out) so I could buy another one.
The whole process was incredibly coarse and seemed to take forever. It was over 3 months from first contacting him to the valuation being carried out (2 week delay due to me).
For whatever reason, the lender he was expecting to use didn't want to lend against the house.
I've now been sent a bill for a decent amount of money for his services rendered.
I didn't sign a contract, and a contract hasn't been returned with my documentation and remittence notice.

I will end up paying it, as it's unfair not to do so, but it just feels like a bit of a kick in the teeth at the end of a few months which were not in the least bit made easier by this person.

I suppose this is just more of a rant than anything else...!

Maxf

8,444 posts

271 months

Thursday 28th September 2017
quotequote all
TheLordJohn said:
Hi all.

Just to clear the air, I have no problem at all with paying to receive a service. We've all got to make a living, that's fine by me.

I was recommended a mortgage broker to take my savings out of a house I own (which is let out) so I could buy another one.
The whole process was incredibly coarse and seemed to take forever. It was over 3 months from first contacting him to the valuation being carried out (2 week delay due to me).
For whatever reason, the lender he was expecting to use didn't want to lend against the house.
I've now been sent a bill for a decent amount of money for his services rendered.
I didn't sign a contract, and a contract hasn't been returned with my documentation and remittence notice.

I will end up paying it, as it's unfair not to do so, but it just feels like a bit of a kick in the teeth at the end of a few months which were not in the least bit made easier by this person.

I suppose this is just more of a rant than anything else...!
Depending on the quantum of the bill, I think I'd be reminding him that at no point was a contract signed.

You're right that it's unfair to pay him nothing if he's done work, but if his bill to you is the same as he'd have got from the mortgage company as a fee, that's not exactly fair either. I do plenty of work which ends up as 'project no fee', which is just the way it goes sometimes (I'm not a mortgage broker btw).

BoRED S2upid

21,069 posts

270 months

Thursday 28th September 2017
quotequote all
My mortgage broker doesn't charge me a fee he gets commission from the company he places the mortgage with. I thought this was common practice.

TheLordJohn

Original Poster:

5,746 posts

176 months

Thursday 28th September 2017
quotequote all
Max - thanks. As I said, I'll probably pay it, as capitalism has got to beat communism (surely!) but it smacks a little.

BoRED S2upid said:
My mortgage broker doesn't charge me a fee he gets commission from the company he places the mortgage with. I thought this was common practice.
I should have spoke to your guy...!

The other annoying thing is that the mortgage he was pushing was far from the cheapest/best product.
Now I know using a mortgage comparison website to get an idea of products doesn't mean the lender will extend those products to you, but the Natwest mortgage was a good chunk more, and when I questioned this he didn't even acknowledge it.

The third thing is that I was going to give the tenant December rent-free as he's a good bloke but I genuinely can't afford to now.

Edited by TheLordJohn on Thursday 28th September 16:04

sc0tt

18,294 posts

231 months

Thursday 28th September 2017
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Did he advise that his services would be chargeable should you not be granted a mortgage?

BoRED S2upid

21,069 posts

270 months

Thursday 28th September 2017
quotequote all
TheLordJohn said:
Max - thanks. As I said, I'll probably pay it, as capitalism has got to beat communism (surely!) but it smacks a little.

BoRED S2upid said:
My mortgage broker doesn't charge me a fee he gets commission from the company he places the mortgage with. I thought this was common practice.
I should have spoke to your guy...!

The other annoying thing is that the mortgage he was pushing was far from the cheapest/best product.
Now I know using a mortgage comparison website to get an idea of products doesn't mean the lender will extend those products to you, but the Natwest mortgage was a good chunk more, and when I questioned this he didn't even acknowledge it.

The third thing is that I was going to give the tenant December rent-free as he's a good bloke but I genuinely can't afford to now.

Edited by TheLordJohn on Thursday 28th September 16:04
You should.

That's another thing I like about him if I can find a cheaper deal elsewhere there's never any pressure to go with him or the product he has found. There never is a cheaper product I've tried! Always higher fees or exit fee or a tiny percentage.

TheLordJohn

Original Poster:

5,746 posts

176 months

Thursday 28th September 2017
quotequote all
sc0tt said:
Did he advise that his services would be chargeable should you not be granted a mortgage?
No. But I have read the letter he sent me (received today) and he is charging me half what the fee would have been had I been 'successful'.
As I've said, I'll pay it (there's nothing worse than someone trying to wriggle out of paying for something) but it just seems a little 'off'.

Foliage

3,861 posts

152 months

Thursday 28th September 2017
quotequote all
TheLordJohn said:
sc0tt said:
Did he advise that his services would be chargeable should you not be granted a mortgage?
No. But I have read the letter he sent me (received today) and he is charging me half what the fee would have been had I been 'successful'.
As I've said, I'll pay it (there's nothing worse than someone trying to wriggle out of paying for something) but it just seems a little 'off'.
Just send him a letter back asking him to clarify where in your contract this was outlined.

Sarnie

8,373 posts

239 months

Thursday 28th September 2017
quotequote all
TheLordJohn said:
Hi all.

Just to clear the air, I have no problem at all with paying to receive a service. We've all got to make a living, that's fine by me.

I was recommended a mortgage broker to take my savings out of a house I own (which is let out) so I could buy another one.
The whole process was incredibly coarse and seemed to take forever. It was over 3 months from first contacting him to the valuation being carried out (2 week delay due to me).
For whatever reason, the lender he was expecting to use didn't want to lend against the house.
I've now been sent a bill for a decent amount of money for his services rendered.
I didn't sign a contract, and a contract hasn't been returned with my documentation and remittence notice.

I will end up paying it, as it's unfair not to do so, but it just feels like a bit of a kick in the teeth at the end of a few months which were not in the least bit made easier by this person.

I suppose this is just more of a rant than anything else...!
Why did the lender decline the property?

What is the broker doing about replacing the lender?

Is the payment requested the same as originally stated?


Not knowing the situation, the length of time may or may not be the brokers fault......we have a simple (or what should have been) remortgage with HSBC that is into it's 3rd month without being offered yet due to endless and ongoing request for information and documents which is exasperating......although I did forewarn the applicant that they are a total nightmare........

Sarnie

8,373 posts

239 months

Thursday 28th September 2017
quotequote all
anonymous said:
[redacted]
Different businesses will set out how they want or need their business to operate.....some don't charge, some will charge on application, issuing of the offer or even completion.

Some charge every time, some don't.

I nearly fell off my charge when a recent client told me the Estate Agency mortgage person wanted to charge them £500!

No broker will be the same, nor will the service they offer or their knowledge and experience of the market.



Sheetmaself

6,123 posts

228 months

Thursday 28th September 2017
quotequote all
Depends on the type of person you are i guess, you could quite easily reply that seeing as there was no contract there is no duty to pay. On the other you sound like me where i dont want to get mugged off but am happy to pay for a service, he has reduced hos fee i would probably pay this as well.

TheLordJohn

Original Poster:

5,746 posts

176 months

Thursday 28th September 2017
quotequote all
Thanks for the continued responses, gents.

Natwest didn't want to lend on it as they said it wasn't worth enough for them (I was open about what I paid for it and market value before the valuation...).
But I have read the letter he sent me (received today) and he is charging me half what the fee would have been had I been 'successful'. Full fee was £500.
He hasn't done anything since. To be honest, I'd deleted all the emails to and from him once he said responded saying we could not continue.

Wanted to forget about it all...!

Thanks again, Stuart.

768

20,678 posts

126 months

Thursday 28th September 2017
quotequote all
I wouldn't be particularly happy. I wouldn't expect to be able to charge if I couldn't deliver on the service I provide to my clients either.

Though if I could run a business charging for not providing a service it'd be a lot more scalable, I could take on an unlimited number of clients.

sidicks

25,218 posts

251 months

Thursday 28th September 2017
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I'd ignore it, if this wasn't agreed upfront, either verbally or in writing.

98elise

32,658 posts

191 months

Thursday 28th September 2017
quotequote all
anonymous said:
[redacted]
Same here. My broker has set up about 6 mortgages for me and I've never been charged a penny. He gets paid by the mortgage company and I see how much that is in the paperwork.

He drives a Q7 so it's not like he can't make a living doing it that way.

Croutons

13,379 posts

196 months

Thursday 28th September 2017
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Seriously why would you pay for terrible service?

Tosh product, took an age to respond, had no idea about the lender's criteria, yet still wants a bung???

No op, don't do it, and I used to be a broker. You either earn your money, or you don't, and in what is nothing but commission based sales, a 3 minute call to the rep (if policy wasn't perfectly clear) would have moved you to a different lender and you'd have got your money out.

drainbrain

5,637 posts

141 months

Thursday 28th September 2017
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Don't these people have to issue you a 'terms of business' letter before they do anything else?

crouchingpigeon

525 posts

223 months

Friday 29th September 2017
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drainbrain said:
Don't these people have to issue you a 'terms of business' letter before they do anything else?
This, they should have provided you with documentation outlining the terms of your contract. He should have had a good idea if the lender would accept or not, he's clearly misjudged this one and probably misadvised and he should chalk this one off as a loss.

Sarnie

8,373 posts

239 months

Friday 29th September 2017
quotequote all
crouchingpigeon said:
drainbrain said:
Don't these people have to issue you a 'terms of business' letter before they do anything else?
This, they should have provided you with documentation outlining the terms of your contract. He should have had a good idea if the lender would accept or not, he's clearly misjudged this one and probably misadvised and he should chalk this one off as a loss.
It was down valued...........thats not the brokers fault...........#DevilsAdvocate

drainbrain

5,637 posts

141 months

Friday 29th September 2017
quotequote all
Sarnie said:
It was down valued...........thats not the brokers fault...........#DevilsAdvocate
So who's "fault" is it that this guy isn't aware of the terms of the engagement with the adviser?