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  • Mortgages & Finance

    Broker jeopardising purchase

    I’m in the process of buying two properties through my broker and have felt let down by the service.

    I wasn’t advised properly on a couple of things that I chose to let pass and put down to experience but the most recent issue is that they appear to be rekeying my applications after three months despite me providing them with all the information they requested within hours of their request.

    I thought the hold up was due to the complexities of setting up a mortgage through a ltd company but I’ve since learnt from the lender that there have been two releys submitted and far too much time sitting on the application.

    There is now a real threat of me losing out on both purchases. They are due to charge me a broker fee of 650 pounds per app when I (eventually) receive the offer but my question is , should I still be bound to pay this if that offer doesn’t arrive in a reasonable timeframe?

    I would feel confident that I could provide evidence that their time delays caused the purchase to fall through. Anyone else had this and what steps could I take?
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    Hi Paul, who is the lender that your broker is 'dealing with' (I use the term loosely!) - TMW/Precise/Kent Reliance/Paragon/Lendinvest/Foundation?  I would say that your broker is still likely to want paying (although in my humble opinion they aren't deserving), but depending on where your case is upto, you may be able to jump ship and move to a quality broker who has more experience, can save you money on what you already have and reduce that broker fee down to something more palatable...

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    Hi Matt, one is with Precise on the bridge to let product which was rekeyed for some reason and the other most recent rekey for the second property is with TMW. My solicitors have everything ready but we’re just waiting on the mortgage offer which is unusual really.
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    Hi Paul, all depends on how much progress you've made...  I'd push to understand exactly whats gone on and specifically why a re-key was required.  And then find out exactly what the lender requirements are on both cases prior to offer...

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    Hi PaulFe

    I am sorry to hear of your woes. Buying through a company is not difficult. I suppose it’s a niche area but it’s still fairly mainstream. Broking is all about understanding the potential issue up front and addressing them. It’s not about sitting on your hands.

    I often hear mixed views on Precise but in my opinion they are a good lender - pernickety but that’s their right if they are lending you vast sums of money. Again it’s about knowing the issues and managing around their slow turn around which frustrates people. TMW are almost the opposite fairly relaxed.

    As to your fee to the broker, you will need to review the terms you signed up to but I suspect as was mentioned earlier they will want paid. You may be able to negotiate a discount but they will be resistant so close to payment. You could try someone else as it shouldn’t take long to resend the documents you have already provided and not long to process if someone knows what they are doing.

    Some documents will need updating after three months so the current broker probably still doesn’t have the info they need to secure you an offer.
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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    Just a quick question, was the broker fee 100% up front, or half on application and half on offer?  If you do think it would be better to move on, you could save yourself half the fee by cancelling asap. 

    Drop me an email if you want to discuss it.  There may be a valid reason for the rekey? 

    We are btl specialists, use both those lenders regularly and rarely see a problem even from a Ltd company application.
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    Financial Consultant working with Property Tribes Financial Services.

    Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - austyn@ptfs.co.uk


    Thanks- it’s the full fee paid to them when we receive the offer from the lender. I could start again but I’ve come this far with them they kind of have me over a barrel a little bit. I certainly won’t be using them again.
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    Yes that does sound like a hard one... 

    Have a read through the terms and conditions that they presented you with on your initial meeting and see if there are any relevant clauses for if you are dissatisfied with the service.


    Have you talked to the broker and asked why this has happened in the first instance? There may be a valid explanation for it after all. 

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    Financial Consultant working with Property Tribes Financial Services.

    Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - austyn@ptfs.co.uk

    It seems to me that by far the greater concern is getting your offer so that the deal doesn't fall through rather than the fee.  I'd be onto the lenders concerned and not let up until I fully understand what the delays are and the causes of them.  Even though you're paying the broker a fee, going direct to the lender can only speed things up if you cut out a poorly functioning middle man.  When you have your offers, you can then turn your attention to the broker fee if it transpires the broker has caused the delays.  You can list their failures and threaten to take it up with the regulator if they don't reduce or cancel their fee. 

    Brokers can and should be adding value and absorbing the stresses of obtaining funding, not adding to them!  Please don't let it put you off using a broker because a good one will be a genuine asset to your business and we don't all charge fees these days!

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