Query re bill from Mortgage Broker

JohnBanner69

Hi - I've just read over the above posts and would like to ask something - (newbie to boards.ie!) I have just got a bill from our mortgage broker for €1700 for our failed mortgage application it was actually €3500 but he knocked a bit off! - long story short - for the last 18months he has been trying to get us a mortgage, he was full of confidence never once told us we were wasting our time, but then the sale pulled through - the house vendor pulled out. I then get a letter with a bill saying that the mortgage failed because of our 'bad' credit rating...! Can they do that?

Dempo1

I am not at all sure about your question has i have never used a broker in relation to seeking a mortgage. However some questions are raised by your predicament.

Firstly, i would have been under the impression Brokers earn their fees by way of commissions from the mortgage provider if successful, i could be wrong. Secondly did you have a written contact laying out agreed fees etc. I would be concerned you were given an impression there would be no problems, particularly in the current climate, this promise was ambitious and i would also say that pursuant to the brokers claim your application failed because of bad credit history, if this was the case, it would have been raised immediately and not 18 months later. Perhaps others can advise better than I, i will watch this thread to see how you get on.

D3PO

JohnBanner69 wrote: »

Hi - I've just read over the above posts and would like to ask something - (newbie to boards.ie!) I have just got a bill from our mortgage broker for €1700 for our failed mortgage application it was actually €3500 but he knocked a bit off! - long story short - for the last 18months he has been trying to get us a mortgage, he was full of confidence never once told us we were wasting our time, but then the sale pulled through - the house vendor pulled out. I then get a letter with a bill saying that the mortgage failed because of our 'bad' credit rating...! Can they do that?

sounds very strange that there is a fee if you couldnt sucessfully get an application through.

Did you sign a contract ? I knwo this is obvous but if you did you need to read the terms of it.

Doesnt sound acceptable to me but I suspect theres a clause in there.

JohnBanner69

Thanks for your replies.

I realise than the comment 'no worries' aboout getting a mortgage in the current climate was wrong, but myself and the wife earn a good salary and all our affairs were uptodate, furthermore we had a combined income of €70k & savings of €30k for a mortgage for €300k. The guy got our credit reports and was very confident that we met all the criteria. Every week for about a year he was on the phone looking for something else - bank statements, tax statements from accountant, saving statements etc. it was becoming a joke the longest mortgage appllication in the history of the state... then the vendor got fed up waiting and pulled out - we paid a deposit on the house - so then we told the mortgage lender to forget about it and he was still trying to pursue it even though the house was taken off the market...

I don't remember signing anything if I did I certainly didn't get a copy of it and I'm anally retentive that way, but I am going to check over all emails / texts and letters from the said party and write a reply letter and will post their response.

Thanks once again for your replys guys.

D3PO

JohnBanner69 wrote: »

Thanks for your replies.

I realise than the comment 'no worries' aboout getting a mortgage in the current climate was wrong, but myself and the wife earn a good salary and all our affairs were uptodate, furthermore we had a combined income of €70k & savings of €30k for a mortgage for €300k. The guy got our credit reports and was very confident that we met all the criteria. Every week for about a year he was on the phone looking for something else - bank statements, tax statements from accountant, saving statements etc. it was becoming a joke the longest mortgage appllication in the history of the state... then the vendor got fed up waiting and pulled out - we paid a deposit on the house - so then we told the mortgage lender to forget about it and he was still trying to pursue it even though the house was taken off the market...

I don't remember signing anything if I did I certainly didn't get a copy of it and I'm anally retentive that way, but I am going to check over all emails / texts and letters from the said party and write a reply letter and will post their response.

Thanks once again for your replys guys.

if you didnt sign anything tell him to swing for it. You dont owe him squat in that instance.

Furthermore Id tell him that your contacting the Financial Ombusman regarding his behaviour.

The_Conductor

Hi guys-

I've split this off into its own thread.

Regards,

SMcCarrick

amdublin

A mortgage broker can charge a fee if (s)he wishes - even in conjunction with the commission fee paid by the bank.

This is fair and reasonable IMO. After all a broker does a large amount of work on your behalf and in your particular case is not getting paid by the bank even after all the work done.

You may not have to sign to agree this fee BUT the broker should told you of his/her fee at the outset. They should have also documented this in their Terms of Business letter.

Was the fee outlined at the outset?
Was a fee discussed at any stage?
Were you advised there would be a fee even if the mortgage did not proceed?
Did you get a Terms of Business?

Suggest you ask a mod to move this to Banking, insurance & pensions as I know there are a few brokers who post over there who might be able to advise more...

Paulw

I used a mortgage broker, and a friend works for a mortgage broker.

I've never before heard of a broker charging you a fee. They earn their money from the banks, when they get you a mortgage.

To me, your situation sounds very dodgy.

You should have a word with the financial regulator, and look closer in to any documentation and contracts given to you by this broker.

amdublin

Some brokers do.

I agree this fee sounds excessive plus your situation sounds dodgy but a broker can and some do charge fees.
(particularly as in the last year or two the banks have reduced/cut the commission fees they pay them - they deserve to be paid for their work after all. Would you work for free?)

Anyhoo, the op needs to check their documentation/emails etc - if a fee was being charged it should have been agreed at the outset.

jimmycrackcorm

Unless you sign something to reflect that you are going to be charged then you should not be paying the broker a fee. The broker failed to get you a mortgage.
You can get a credit check quite easily so it would be worth verifying if indeed there is something amiss.

D3PO

amdublin wrote: »

A mortgage broker can charge a fee if (s)he wishes - even in conjunction with the commission fee paid by the bank.

This is fair and reasonable IMO. After all a broker does a large amount of work on your behalf and in your particular case is not getting paid by the bank even after all the work done.

You may not have to sign to agree this fee BUT the broker should told you of his/her fee at the outset. .

dont talk nonsense. Firstly nobody says a broker cant or doesnt deserve a fee, but NOBODY can charge you a fee never discussed , never agreed to and never signed for.

amdublin

Yeah which is what I said. IF this broker was charging you a fee this should be outlined to you at outset and included in his Terms of Business letter.

Suggest the op checks all his documents for this...

The_Conductor

Moved to Banking, Insurance & Pensions forum. There are quite a few knowledgeable folk in this forum who may be in a position to offer advice to the OP.

Kind regards,

Shane

kaiser sauze

If you did not sign any fee schedule at the beginning of your dealings with him, offer him the princely sum of "0", and tell him that he was worth every cent.

End of.