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quick question...anyone used a mortgage broker and had to pay?

(44 Posts)
lulabelle Thu 30-Aug-07 10:48:52

I'm horrified...I'm paying for one and everyone I speak to says they got theirs done for free! On top of all that, I have had to do all of the ringing around myself to chase them up as they seem next to useless! With my fee to the mortgage company and their fee I am paying out £5,500! I'm gutted - first time buyer that seems to have been had sad

Tinker Thu 30-Aug-07 16:44:31

No. How much are you paying him? They earn their fee from the commission re teh mortgage they arrange for you - and have to be upfront abut what this is. However, it may sometimes still be cheaper if they can get you a really good deal. Maybe? Our broker couldn't get us teh deal we found for ourselves online

sarahlou1uk Thu 30-Aug-07 16:48:50

We hired an independent one that works from home so he isn't tied to an estate agent or any specific company. His one off fee was £250 but that was 4 years ago so I would imagine it would be more expensive now. Plus mortgage arrangement fee from mortgage provider to take into account. would definitely use again.

sandyballs Thu 30-Aug-07 16:49:33

That's outrageous. London and County are really good and free, they take the money from the company you choose to go with, IF you go with one of them.

Bubbaloo Fri 31-Aug-07 18:44:16

We've used London and Country 3 times now,have paid absolutely nothing,have been very pleased and found the chap we deal with to be very pleasant and professional at all timessmile.

lulumama Fri 31-Aug-07 18:48:36

i use an independent financial advisor..they get paid by the mortgage company directly, have never had to pay a penny...and he comes to the house, so even better

is it too late to back out of using this one?

Kaz33 Sat 01-Sep-07 15:51:00

We used an independent mortgage broker three years ago and he was about £200 as I recall. He was worth every penny as we were relying on commission from DH's job to up the amount that we could borrow.

LilyLoo Sat 01-Sep-07 16:12:15

Not too sure how much of that amount you have paid to broker but am shock
My dp an independant broker and for 99% of cases he is free and get's paid by the mortgage company you go with. On the odd occasion he may have to charge if the client has a bad credit history as this can sometimes mean a lot of extra work.
If you can i would look into using someone else if it isn't too late.
If you want any help let me know smile

LilyLoo Sat 01-Sep-07 16:12:57

ps if he has to charge it is only £250

cat64 Sat 01-Sep-07 16:47:31

Message withdrawn

lulabelle Mon 03-Sep-07 14:59:45

OK, I will admit, we are paying £3,500 for this company. I wish I could get out of it but don't think I can. We have had a total nightmare.

Tinker Mon 03-Sep-07 15:17:25

shock Did you know before you signed up? Were you misled?

Nip Mon 03-Sep-07 15:26:57

we had a mortgage advisor that tried to charge us £1000.00 - we told him no way - the next day walked into a high street estate agents, got the same deal with no fee. I think some of them are just taking the p*ss now.
Fingers crossed you can get out of it.

lulabelle Mon 03-Sep-07 15:39:49

To be honest, we are first time buyers who had no idea, its only recently when I have been moaning about them that people have told me that they have not had to pay, and they have had a much better service than me, they have delayed things, lied to me, lost things, etc. We weren't told explicitly but I saw a charge in the key facts document, also the mortgage company will pay them nearly £2k as well as what we are paying them. DH says I can't complain as they have our passports ane everything, I'm gutted that fee could have been our new conservatory! sad

lulabelle Mon 03-Sep-07 15:41:02

Meant to say the deal we got, we could have got ourselves from the mortgage co, they even said to us that we shouldn't be doing all the ringing round we have had to do, said that we didn't need them (brokers), there is nothing I can do now, just learnt a harsh and expensive lesson in life I guess!

Tinker Mon 03-Sep-07 15:41:49

Why have they got your passports? They would only need to see them, not keep them, surely. This all sounds odd. Please speak to someone (CAB?) about this. It sounds wrong. angry

lulumama Mon 03-Sep-07 15:43:23

there must be an ombudsman you can complain to....why do they have your passports? they should photocopy the relevant page and return them immediately... i would go to the CAB and see what they advice...

also , see if they are members of any institution or board you can complain to

mishymoo Mon 03-Sep-07 15:45:22

The FSA (Financial Services Agency) regulates financial advisors, etc so perhaps giving them a ring may help and if not, they should be able to direct you to the right place.

That sounds dodgy to me - far too much money to be paying an advisor! Is that purely their fees or are there any costs included, i.e. solicitors and stamp duty?!

lulumama Mon 03-Sep-07 15:46:21

x posts with tinker

lulabelle Mon 03-Sep-07 15:46:25

well he came to the house and they were needed for id so he took them away to photocopy them, we have been told he will bring them back, they are a proper company regulated by the FSA, CAB would probably just tell me to get on with it!

mishymoo Mon 03-Sep-07 15:48:35

Also, have you actually signed any documents yet? If not, you should be able to back out! Without a legally binding document, I don't think they are able to 'pursue' you for any fees!

lulabelle Mon 03-Sep-07 15:49:01

No, when I read it the costs were broken down, £3,500 to them, £1,000 for solicitors, £95 admin fee to the brokers also, Valuation fee, they missed off stamp duty. Its def all for them.

Kaz33 Mon 03-Sep-07 15:49:14

What does it say in the key facts document?

What have you signed? If anything?

Were you told about £3,500 fee up front?

What is the deal that they have got you?

Do you have a good credit rating?
Do you have a deposit?

lulabelle Mon 03-Sep-07 15:51:04

we have signed, we are waiting to exchange contracts but as I said because they have been telling us anything to get rid of us its only when I started complaining to people that I'm learning we have been had! angry. They promise things will arrive in the post, and they don't, they have told us things have been posted when another person tells us they are there in front of them on the desk, they told me not to pay a fee, then to pay it, then I found out it had been paid twice, its just making me feel ill and stupid.

lulabelle Mon 03-Sep-07 15:52:43

yes, good credit rating, deposit and deal with reputable mortgage company but no better a deal than I could have got myself by searching on the internet, just as we are new to this we accpeted the help and the thought of not having to do anything other than sign docs was attractive to us, I had no idea that this was a complete rip off!

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