Mortgage broker problem - dishonest service?

beerfan

I am a first time buyer seeking a mortgage as a single person. I decided to go with a mortgage broker to save myself time and hassle in dealing with multiple different banks and to hopefully get a mortgage exception.

With that said, I have some concerns about the broker I am currently using (to whom I have already paid a 50% of my fee):

In my opinion I was led to believe that the broker would submit an application to multiple different banks. Although I don't think they ever explicitly said this was the case, during their initial presentation I was shown "all the different banks" they deal with, and was also given a stack of application forms for multiple banks to sign. I was also told that "the banks are willing to lend X" (note the plural "banks"). However, I have only been presented with an offer from one single bank (KBC), and I have no idea whether or not the broker has actually tried multiple banks or just applied to one particular bank (maybe the one that offers the best commission?). Secondly, I have no idea whether or not this mortgage offer is the best value for me; KBC do offer a discounted rate if I open a current account with them but I had no intention of moving current accounts, I just want to get a mortgage.

It's worth noting also that I had explained to the broker I was seeking an exception and this has been turned down by KBC; I was surprized at this since I've had friends earning less get exceptions. This would have been a further motivation in my eyes to try multiple banks.

Do I have a leg to stand on here? I have asked the broker on two occasions for a list of the banks they have applied to and they have evaded the question both times; I'm waiting nearly a week now with no response. I'm cognizant of the fact that I'm far into the process now and if my dealings with this broker fall through this will seriously impact my plans for buying property, but at the same time I'm not going to be taken advantage of.

Fol20

beerfan wrote: »

I am a first time buyer seeking a mortgage as a single person. I decided to go with a mortgage broker to save myself time and hassle in dealing with multiple different banks and to hopefully get a mortgage exception.

With that said, I have some concerns about the broker I am currently using (to whom I have already paid a 50% of my fee):

In my opinion I was led to believe that the broker would submit an application to multiple different banks. Although I don't think they ever explicitly said this was the case, during their initial presentation I was shown "all the different banks" they deal with, and was also given a stack of application forms for multiple banks to sign. I was also told that "the banks are willing to lend X" (note the plural "banks"). However, I have only been presented with an offer from one single bank (KBC), and I have no idea whether or not the broker has actually tried multiple banks or just applied to one particular bank (maybe the one that offers the best commission?). Secondly, I have no idea whether or not this mortgage offer is the best value for me; KBC do offer a discounted rate if I open a current account with them but I had no intention of moving current accounts, I just want to get a mortgage.

Do I have a leg to stand on here? I have asked the broker on two occasions for a list of the banks they have applied to and they have evaded the question both times; I'm waiting nearly a week now with no response. I'm cognizant of the fact that I'm far into the process now and if my dealings with this broker fall through this will seriously impact my plans for buying property, but at the same time I'm not going to be taken advantage of.

From what i believe, they have to be open with the amount of commission they can receive. I would look online at all the big banks in ireland and see which one offers the best rate for you. If you dont think KBC have the best rate for you, i would arrange an appointment with her. Go into her office and talk to her face to face and ask her what other banks were willing to offer and secondly if another bank offers a better deal, what can they do for. That way your face to face with her and dont allow her to dodge the question. I had open dialogue with my broker and although we disagreed on some points i made the call for who i wanted to go with. Just be logical,clear and firm so at least then you can put your worries to bed.

hanaimai

If a broker is not independent, then it must tell you what bank(s) it is tied to (check any terms and conditions they might have given you). If they haven't told you what bank(s) they are tied to then they are either breaching regulatory requirements (see the Central Bank's Consumer Protection Code), or else they are indeed independent. If they are actually independent, then they are meant to tell you when an application for a mortgage has been rejected. There are also rules around not misleading consumers and stuff like that.

Either way it looks like they're not fully complying with the rules. You should make a formal complaint to the broker and if the outcome of that is unsatisfactory, complain to the Financial Services Ombudsman.