Urgent advice needed for Popsy's sister about a dodgy mortgage advisor......

[popsycal]

My sister is hoping to buy a house with her partner. The mortgage adviser attached to the estate agent found them a 100% mortgage with a mortgage company (which I had never heard of) and it was agreed in princile based on my sister's last 3 financial years of accounts (she is self employed) and her partner's income.

All was going through. They have paid the solicitor to do surveys, references were sent re income.

Mortgage advisor rang my sister teo days ago. Said my sister's accountant (who had to complete a form to confirm her income) quoted this year and the two previous and he now says the mortgagewont be approved as she had a short maternity leavethis year.

Keeop reading please.......

Then the mortgage advisor asked how well my sister knew her accountant and asked her to gether accountant to fill the form in again and 'embellish' the figures. My sister said no way as she has been with the accountant for years,

THEN he said that the only other way shewould ever be ableto get the mortgage is if he rang his own accountant friend who, for £300, would complete the form for her.

Sister said wanst it illegal and he said yes but everyone does it.

Any way - my sister actually went to see her own accountant and told herall of this. Shesaw the mortgage advisor at her own accountants office who rang his friend who worked for the company who they were going to get mortgage through. They have aggreed it in principle but have not receievd any refernece yet. BUt said if it was agreed in principle then it would go through. They have certainly not instructed the broker that it wasnt goiung through.

New mortgage bloke found then a mortgage of £150 a month cheaper with another place and said they would have got a mortgage on sister's partner's salary alone........

If you have got this far - thank you.

Next step?
Obviously she is not going with dodgy bloke,but how should she handle it and who can she complain to?

many thanks

there is a proffessional body. hang i'll go and find it.

Also I would consider complianing to the agents.

Here you go fsa is the licensing board they would be my first step for a complaint.

thanks
have just rang my sis and gave her the phone number of FSA

will let you know what happens

DP an advisor and has been at this. He has said his regulator would be on the paperwork she has already completed with him. She could then contact them. Hope she get's it sorted at least she managed to find someone else whilst she could.

This does not suprise me, I was in a clients house earlier this year and saw copies of false accounts that a previous mortgage adviser made up for the client. Get this, the accountants address was exactly the same as the mortgage adviser! I also think the mortgage company rumbled this as they then asked for bank statements proving the salary which is when the whole thing fell through and I was asked to get involved.
I think a fair bit of this goes on, it depends on the type of client and what they are looking for. I quite often seem to have to pick up the pieces of poor brokers before me.

truely dreadful

She is going to complainobvioulsy

But I have also advised her to go to buildingsocieties direct and side stepmortgage brokers.

When we were first time buyers,we got their advice and then approached the building society independentof the broker

thanks everyone]
willupdate

Please also speak to estate agency and their regulatory body - many estate agencies work in partnership with their "independent" financial advisers and, if they are decent, will want to distance themselves from him. If they are not, should be hauled up in front of ombudsman. The estate agency should have their RB on details/stationery/in office.