Issues with mortgage broker
Discussion
I'm currently living overseas and have had an offer accepted on a buy to let property in UK. Went to see the estate agent's in-house mortgage advisor. Explained that the application may be complex considering my overseas status, he said he "loves" complex cases.
When it came to fill out the application, he was insistent on using my UK correspondence address. When I questioned it he said that he didn't want to tell the lender that I'm overseas.....apparently "what they don't know won't hurt them". I refused to sign the application until he changed the form. He said he would, and process. He photocopied my salary slips, bank statements and insisted on my bank card (which I was concerned about).
Had a call the following day to say that applicant was approved. I asked for confirmation that the lender is ok with me being overseas. He promised to send details of their terms and conditions proving that.
That was a week ago and I'm still waiting. Tried to call the lender but they will only deal with brokers.
I now notice that a charge has hit my account for the mortgage survey, even though I've signed nothing and still waiting for confirmation.
Is it normal for mortgage companies to take payment for the valuation survey before I sign the application etc ?
Secondly, should I report him to FSA for his conduct ?
Thanks
When it came to fill out the application, he was insistent on using my UK correspondence address. When I questioned it he said that he didn't want to tell the lender that I'm overseas.....apparently "what they don't know won't hurt them". I refused to sign the application until he changed the form. He said he would, and process. He photocopied my salary slips, bank statements and insisted on my bank card (which I was concerned about).
Had a call the following day to say that applicant was approved. I asked for confirmation that the lender is ok with me being overseas. He promised to send details of their terms and conditions proving that.
That was a week ago and I'm still waiting. Tried to call the lender but they will only deal with brokers.
I now notice that a charge has hit my account for the mortgage survey, even though I've signed nothing and still waiting for confirmation.
Is it normal for mortgage companies to take payment for the valuation survey before I sign the application etc ?
Secondly, should I report him to FSA for his conduct ?
Thanks
If you've signed nothing then he should not have submitted the application.
Effectively you are comitting mortgage fraud. However if you are 100% sure that you've signed no forms, the broker could and should be in a whole world of hurt.
If he is not telling the lender that you are overseas its becuase they won't deal with expats. (Not every lender does, some do, it may be he's restricted on who he can recommend.)
Personally at the moment if I were you I'd run a mile.
I'd get on the phone to the agent and suspend the sale, I would certainly try to suspend the valuation, however, if they've done the survey, you've lost that money. I'm guessing he's banking on the fact that once you've got the offer, you'll happily compete the sale.
I'd make sure that you send something (fax/email/both) in writing to ensure that the application is cancelled if I were you.
If you want to let me know the Mortgage firms name I'll happily tell you if they do ex-pats.
Effectively you are comitting mortgage fraud. However if you are 100% sure that you've signed no forms, the broker could and should be in a whole world of hurt.
If he is not telling the lender that you are overseas its becuase they won't deal with expats. (Not every lender does, some do, it may be he's restricted on who he can recommend.)
Personally at the moment if I were you I'd run a mile.
I'd get on the phone to the agent and suspend the sale, I would certainly try to suspend the valuation, however, if they've done the survey, you've lost that money. I'm guessing he's banking on the fact that once you've got the offer, you'll happily compete the sale.
I'd make sure that you send something (fax/email/both) in writing to ensure that the application is cancelled if I were you.
If you want to let me know the Mortgage firms name I'll happily tell you if they do ex-pats.
Hang on, if the lender is taking fees for the valuation then they have reason to believe the application is to be processed which should only be the case once they have received the signed customer declaration form. In less of course the broker did the application online thus he can claim your documents are in the post and buy sometime.
Your biggest problem now is if you are now declined or not eligible is that this may have an impact on your chances of getting a loan elsewhere and you maybe left out of pocket as not all lenders refund fees.
dave
Your biggest problem now is if you are now declined or not eligible is that this may have an impact on your chances of getting a loan elsewhere and you maybe left out of pocket as not all lenders refund fees.
dave
Update today.
I spoke to the lender who has confirmed that they would never lend to an overseas resident. Called the broker to explain. He claims he had told them I had a residency address in the UK but worked overseas for most of the time. Apparently he couldn't understand why they hadn't realised I was overseas. I had to explain the difference between a UK "correspondence" and "residency" address.
I wrote a letter to the broker's complaints department. The head of financial services called me today to explain that, after further investigation, it would appear the broker and business development manager at the lender were in cahoots. He confirmed that emails were exchanged with the correct information and discussions on how to work around the "issue".
Three weeks later and I have to restart the application process with another broker and lender. I'm not happy. At least they have offered to refund the valuation survey fee. How kind of them.
I spoke to the lender who has confirmed that they would never lend to an overseas resident. Called the broker to explain. He claims he had told them I had a residency address in the UK but worked overseas for most of the time. Apparently he couldn't understand why they hadn't realised I was overseas. I had to explain the difference between a UK "correspondence" and "residency" address.
I wrote a letter to the broker's complaints department. The head of financial services called me today to explain that, after further investigation, it would appear the broker and business development manager at the lender were in cahoots. He confirmed that emails were exchanged with the correct information and discussions on how to work around the "issue".
Three weeks later and I have to restart the application process with another broker and lender. I'm not happy. At least they have offered to refund the valuation survey fee. How kind of them.
northandy said:
To be honest I would be taking that to the FSA, I know you are no using another broker etc and you got your fee back, but how many others have they done in the same way.
The problem is that buy to let mortgages are not regulated by the FSA. I can take it to the Financials Ombudsman.I will give the company's complaint procedure a try first. They have asked me to confirm that I will not take any further action if they refund and start an investigation.
marcusjames said:
The problem is that buy to let mortgages are not regulated by the FSA. I can take it to the Financials Ombudsman.
I will give the company's complaint procedure a try first. They have asked me to confirm that I will not take any further action if they refund and start an investigation.
Ah didn't realise, hmmm that sounds fishy though, so they refund you but only if you let them deal with it?. I will give the company's complaint procedure a try first. They have asked me to confirm that I will not take any further action if they refund and start an investigation.
scotal said:
Sarnie said:
What are you hoping to gain from this, apart from your refund?
Well given that the broker is bent, it might be nice for the industry if the guy wasn't in it.They have offered some form of compensation. I want a refund of costs incurred, plus him disciplined so he thinks twice before trying to mislead someone else.
marcusjames said:
Exactly.
They have offered some form of compensation. I want a refund of costs incurred, plus him disciplined so he thinks twice before trying to mislead someone else.
Don't get me wrong, I am in now way condoning his actions.They have offered some form of compensation. I want a refund of costs incurred, plus him disciplined so he thinks twice before trying to mislead someone else.
I was just genuinely curious, what a wronged client would see as a satisfactory result of a complaint.
marcusjames said:
northandy said:
To be honest I would be taking that to the FSA, I know you are no using another broker etc and you got your fee back, but how many others have they done in the same way.
The problem is that buy to let mortgages are not regulated by the FSA. I can take it to the Financials Ombudsman.I will give the company's complaint procedure a try first. They have asked me to confirm that I will not take any further action if they refund and start an investigation.
http://www.cml.org.uk/cml/consumers/guides/complai...
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