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can you change mortgage broker?

(10 Posts)
unimagimative13 Sun 10-Apr-16 20:14:05

So we've now purchase a new build on a help to buy scheme. We decided to go with the mortgage broker they recommended (charge £500)

The example he sent looked great, he gives a good talk, it'll all be great blah blah.

Send off paperwork- he comes back with a ridiculous mortgage offer. Double fees etc - saying this is our ONLY option and making us sign blank documents, a form saying we will remortgage with them in 2 years.

We are first time buyers my my heart sank when I saw what he wanted me to sign.

I went back to him as ask why we couldn't go for the one he said originally and he gave some crap reassurance 'it's only for 2 years'

I really want to ditch him- has anyone else been in this situation, can you still shop around?

I've seen London and Country recommend. Can you talk to two brokers?

LordEmsworth Sun 10-Apr-16 20:17:50

You can talk to whoever you like. You don't need a broker, if you've seen a mortgage you want somewhere you can go straight to the bank / building society.

And there are a lot of mortgage brokers who won't charge you anything - they get paid by commission from the mortgage provider (sounds like he might also be getting commission...). As a first time buyer buying a new build, you probably don't need a specialist broker who'd be worth paying for, so watch out for what you're paying for...

bearbehind Sun 10-Apr-16 20:24:56

Anyone asking you to sign blank documents is thoroughly unscrupulous and should be told to fuck off.

The only danger is what else you might have signed already committing you to dealing with this crook.

228agreenend Sun 10-Apr-16 20:26:35

Talk to the banks directly.

unimagimative13 Sun 10-Apr-16 20:27:55

We are in slightly difficult circumstances, self employed (with all accounts), shared ownership and small deposit.

He is also getting £400 from mortgage provider it's in the documents plus £500 from us.

CoperCabana Sun 10-Apr-16 20:28:55

As others have said, look online, shop around, talk to banks directly. We once talked to a broker that was recommended by a builder. Hopeless! We eventually secured a mortgage online at a far better rate.

bearbehind Sun 10-Apr-16 20:33:43

Brokers will earn commission from the lender, that's a given and nothing to worry about.

There's nothing to stop you speaking to another whole of market broker and seeing if this one is actually telling the truth or not.

I'd bet he's talking crap as I've never heard of a reputable broker making you commit, in writing, to using them to remortgage in 2 years- in fact I'd be interested in how the FCA view that.

Talking to the banks directly is a bad idea- you need to be an expert to know how each lender views various factors which is where a broker becomes invaluable. Bumbling around from bank to bank when your circumstances limit your option just wrecks your credit rating.

RNBrie Sun 10-Apr-16 20:33:44

Please don't use a broker recommended by the person/company you are buying from. It's madness.

You can talk to as many brokers as you like and they should only charge you a fee if they arrange and secure your mortgage.

SnuffleGruntSnorter Sun 10-Apr-16 20:39:39

We paid absolutely £0 to our broker - his fee came from the mortgage company and he was clear to explain its a flat fee that is the same whichever provider we choose. He gave us a list of options with absolutely no pressure to choose any of them or to return.

CoperCabana Mon 11-Apr-16 17:57:01

Ah cross post, didn't realise about your circumstances. In which case, yes talk to another broker.

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