This week comments from Paul Adamson and Doug captured the attention in response to the article: The challenges of rescuing clients from another mortgage broker – Chris Hall.
Paul Adamson wrote: “We hear this continuously from clients. There was one very similar to the one you mentioned actually, only last week – with the £1,995 upfront fee.
The broker even marked-up the valuation fee and took payment even though when I did an FCA check they didn’t have authority to handle client funds.
The property here would be deemed back-to-back and I explained that barring a couple of non-mainstream lenders like Together, no-one would lend at the full market value of a buy to let.
The other broker had sent the application to Paragon Finance [who don’t do this].
[Those brokers were] absolute cowboys.
Although like you we always take these sorts of whines from clients with a pinch of salt as there is usually more to it than is told to us, however regarding this case there are no excuses, the clients had been totally forthcoming with all the facts.
It’s shameful these types of brokers are still getting away with robbing people.”
And Doug wrote: “This happens all the time.
Many brokers want the easier vanilla re-mortgage or purchase cases but don’t like putting in hours of extra work for the self-builds, adverse clients, right to buy, limited company buy to let, expats and lending into retirement cases.
I can’t say I blame them. I wonder why I seem to pick up all of the above which can take four-to-six months to complete and take-up at least double the paperwork and time of a normal re-mortgage.
The fail rate is higher than average as well so your key performance indicators at the end of the year don’t look as good as someone in the office picking up clean cases.
It gives you a good feeling when they complete, and the clients are always very happy and amazed it’s happened when the other brokers gave up.
But the extra workload doing six-day weeks and reduced bank balance don’t make me feel any better come payday when some brokers work fewer hours and get paid more.”