Advice regarding personal mortage

[mids_biz_guy]

Hi folks

My partner and i have just got approval on a mortage for our new home (chuffed to bits) We know from the mortage offer that the company the financial adviser works for is getting approx £900 fee from the lender.

However we have been presented by a invoice from the finacial adviser to pay him £250 plus vat personallay for work and administration above and beyond.
Firstly we dont think hes done anything above and beyond, maybe moved things along, but things that have happened quickly would have been done in the normal process anyway.
Secondly its a invoice plus vat, but with no vat number!

I know in the grand scheme of a mortgage £250 is not huge (ironically i also feel this is a figure most people chuffed to get their mortgage would pay, without too many questions) but it still makes me feel uncomfortable.

just looking for advice and peoples thoughts

many thanks

 

[Billmccallum]

What were the terms and conditions of the advisor?

From memory, I thought that an advisor had to inform the client of the fees, I know mine did (but that was six years ago).

 

[oldeagleeye]

Typical. You get the mortgae placed and then gripe at a £250 quid admin fee.

When I was a broker for 20 years the lender diidn't pay an introducers fee so I would have demanded between 1-2% of the value of the loan + and endowment policy.

I doubt very much either the FA got much of that £900 quid and the guys got to earn a living.

Pay him or her the money and be bloody grateful. Mortgages are tough to come by these days and you must have gone to a broker because you couln't find a lender yourself.

Wish you luck in your new home and I think your be pig sick for your thoughts here today if as I did the FA sends you a house warming card and a bottle of wine.

rob

 

[mids_biz_guy]

As ive put its not a hughe amount and i have no real issue paying it.

As iove put its would have been nice to have been told this was coming, also the no vat number concerns me.

Also this is going through the company he works for and then bang a personal bill.

We have used him before not because we couldnt find a lender, he deals with friends and our family life insurance etc. We use him for an impartial honest service.

I also expect people to earn a living, i have and never will expect anything for free. We have gently asked why a bill and been given a washy "extra work" answer.

Also thinking about it last night on a previous mortgage he warned us that if the lenders commisision didnt meet the required level by him/employer they would then invoice us but we woudl be forwarned.

"Typical. You get the mortgae placed and then gripe at a £250 quid admin fee."

If i had known about this fee £250 or whatever it may have been i would write the cheque for him, but does this now mean that if i quote for some work and i dont think im going to make enough profit, i can throw a bill it when the jobs finished and theyve got their finished project or in this case mortage.

 

[vvaannmmaann]

Have a look at this.It may help you.
http://www.direct.gov.uk/en/MoneyTa...oney/PlanningYourPersonalFinances/DG_10034209

 

[oldeagleeye]

Few financial advisors act for any one particular company unless they are tied agents. They are 'introducers' and their value is in knowing which companies have funds at any one time as well as being a bit flexible on income perhaps and this can come right down to the manager of a local branch of a building society.

The vat I don't know about but there is a simply solution that was arounf long before the Internet. You simply pick up the phone instead of asking us when we havent got a clue as we have never met the man.

rob

 

[gordano]

The financial advisor should have provided you with details of their fees up front, I understand this is a FSA requirement, if they did and it included the £250 then you have to pay.

BUT, if you did not get the fees info up front then put this in writing to them and ask for the issue to be investigated by the FSA.

IMO it is common for advisers/introducers to charge fees in excess of what the lender pays them, so the £250 does not seem unreasonable ... it just comes down to what was agreed in advance.

 

[mids_biz_guy]

Few financial advisors act for any one particular company unless they are tied agents. They are 'introducers' and their value is in knowing which companies have funds at any one time as well as being a bit flexible on income perhaps and this can come right down to the manager of a local branch of a building society.

The vat I don't know about but there is a simply solution that was arounf long before the Internet. You simply pick up the phone instead of asking us when we havent got a clue as we have never met the man.

rob

Speak to who on the phone, if you mean HMRC they wont confirm if someone is or isnt vat registred they will only tell you if a VAT number is real etc

 

[Businessworld]

Hi

I have been involved in Financial Services for over 30 years. In the first instance you should have been made aware of all fees at the start and within the documentation giving you quotations etc (it is called an initial disclosure document) This will give full details of all charges. As one of the other respondents says while it mentions a commission £900 in all probability the "network" to which he is attached would have taken a proportion of it. I would normally have charged £350 and would have disclosed it at start - so you didnt get a bad deal!

The VAT aspect is puzzling - in the first instance Financial Services are zero rated so he shouldnt have to charge VAT - maybe it was a mistake but the absence of a VAT number on the invoice is strange

 

[willitbe]

Nothing odd about it, just a chancer on the make?....or someone that has manipulated something in your favour to make it go through?...

You decide but in my experience these people are really handy to know.

Cheers Willitbe

 

[oldeagleeye]

This is it in a nutshell isn't it. Punter goes direct to building society and gets turned down for whatever reason then goes to broker hoping they can bend the rules even though it may only mean the FA has a nod and a wink with a bigger broker.

The punter gets their mortgage and then goes behing the FA,s back phoning up HMRC.

I tell you something guys. If I have had to exagerate the OP's own income status slightly by nodding promotion in the air for him or something I would bloody well pull the mortgage if I found out what he was up to.

He is COMPLETELY OUT OF ORDER.

Rob

BTW. When I said make a phone call it was ment to be to the FA.

 

[mids_biz_guy]

This is it in a nutshell isn't it. Punter goes direct to building society and gets turned down for whatever reason then goes to broker hoping they can bend the rules even though it may only mean the FA has a nod and a wink with a bigger broker.

The punter gets their mortgage and then goes behing the FA,s back phoning up HMRC.

I tell you something guys. If I have had to exagerate the OP's own income status slightly by nodding promotion in the air for him or something I would bloody well pull the mortgage if I found out what he was up to.

He is COMPLETELY OUT OF ORDER.

Rob

BTW. When I said make a phone call it was ment to be to the FA.

I havent approached the building soceity direct, if you read my posts correctly we use this guy for his knowledge not for him to bend the rules.

I havent rang the HMRC i stated from my knowledge that they will not tell you if someone is or isnt VAT registered!

Get your facts right - before ranting.

 

[oldeagleeye]

YOU SAID IT. YOU USED THIS GUY FOR HIS KNOWLEDGE

THEN PAY HIM and stop gripping about £250 quid.

 

[willitbe]

YOU SAID IT. YOU USED THIS GUY FOR HIS KNOWLEDGE

THEN PAY HIM and stop gripping about £250 quid.

A little on the large side and a little bit red, but essentially the way to go OP.

 

[mids_biz_guy]

YOU SAID IT. YOU USED THIS GUY FOR HIS KNOWLEDGE

THEN PAY HIM and stop gripping about £250 quid.

seriously chill out, can really express what i would like to put here but hopefully people can guess my opnion

 

[RBS]

Pay him or her the money and be bloody grateful. Mortgages are tough to come by these days and you must have gone to a broker because you couln't find a lender yourself.

Agree 1000%. What is 250£ against your house worth probably 250k? I feel jealous because I have 25% deposit, more than enough income, I`m first time buyer, but still cannot buy because I have been self employed just for 6 month - lenders want 2 years. This is crazy and makes me go nuts. Have to rent now, pay landlords mortgage and fill his pockets with money.

So, enjoy your home

Rob

 

[oldeagleeye]

Rob

Try the Banlk of Ireland or Alliance & Leicster

Rob

 

[sellickbhoy]

YOU SAID IT. YOU USED THIS GUY FOR HIS KNOWLEDGE

THEN PAY HIM and stop gripping about £250 quid.

it's rare that i disagree with you OEE, but i think you are well off the mark here.

the rules and regulations require an advisor to advise a client of any fees to be paid upfront.

this doesn't appear to have been done.

FA's get payments from the loan provider - and they also may/may not charge the borrower for their services.

some FA's are tied, some are free to give all of market advise. I believe an FA has to tell the borrower if they are tied or are giving all of market advice

this sounds to me like someone is being greedy and taking advantage.

what they have done in order to get the loan might be worth what he is asking, BUT the fact this charge has appeared after the fact AND they are throwing on VAT says to me the character is a bit of a chancer.

Also, if this person has bent some rules in order to get the paperwork - will it be them that is made homeless when the borrower can't repay the mortgage or finds the product they have isn't actually what they needed?

this all sounds very dodgy to me - i'd get the OP to carefully examine all their paperwork and see if this fee is mentioned anywhere - and if not, i'd let the FSA decide if the money is due and if this FA should be allowed to continue in business.

 

[RBS]

Rob

Try the Banlk of Ireland or Alliance & Leicster

Rob

Phonem them today - the same, 2-3 years trading history. But I have an idea - what if I change to PAYE, get 3 months payslips, get mortgage and then go back to self employment payment scheme.

 

[mids_biz_guy]

Phonem them today - the same, 2-3 years trading history. But I have an idea - what if I change to PAYE, get 3 months payslips, get mortgage and then go back to self employment payment scheme.

Hi weve got a 85% mortgage with alliance and leicester but they are stopping/ have stopped 85% as santander are dropping the a & L brand.

This was after two years books, i run the business as limited company, a am also in building trade. i still give A & L a try you never know

Wish you all the best luck

 

[oldeagleeye]

I think your best bet Rob is get the phone number of the FA the OP used. He only charges £250 + the brokers commission