Serious Problems with Mortgage Broker

H

househunter0

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(post reformatted and paragraphs added by ajapale)
Hi All

I am a bit disillusioned as I write this, having had serious problems with my mortgage broker, whose name I will not disclose here.

To give you an overview - basically, myself and my other half contacted this broker about 3 months ago with a view to getting a mortgage. Because my other half is a teacher and does not have a permanent job, we felt it best to go through the broker who we felt could advise us as FTBs.

About two months ago, we found a property we decided to buy. I immediately told the broker this and that we would need to process the mortgage application asap. We put a deposit on the property and all was fine.

I told the broker the cost of the property and how much we needed to apply for. After not hearing from him for a while, I again contacted him to find out that he had applied for more than the value of the property which absolutely cannot be done according to all the lending institutions.

About three weeks ago, our solicitor asked us to come and sign the contracts - the mortgage had still not been resolved due to the fact that the mortgage broker was requesting documentation which the solicitor was adament they shouldn't need. We signed the contracts and she put a clause in the contract to say it was subject to mortgage.

Having furnished the mortgage broker with all requested documentation, we hoped that things would move pretty quickly and we sorted out the mortgage protection insurance and the life assurance and sent the policies to the broker.

In the meantime, we were issued our loan offer but the offer was wrong and had to be sent back again.

In the last week, having been assured by the broker that everything was in order, we hoped to draw down funds asap - the property is a new one and so will require stage payments.

On Monday, I rang my solicitor and she told me that, despite what the broker said about everything being in order, she had just spoken with the bank and there were still documents outstanding - all of which I had previously given to the broker.

To top it off, the mortgage was not setup for stage payments as it should have been. I was extremely cross and immediately rang the broker who assured me everything was fine and he would ring the bank again.

I received an email from the broker yesterday morning saying that he had spoken with the bank and everything was in order and it would be processed and that he had emailed my solicitor to verify same.

Yesterday afternoon, however, I received a phone call from my solicitor saying that the bank was still looking for documentation before we could draw down the cheque. She is extremely cross over it (which I can't blame her) and wants me to pull the whole thing from the broker.

Herein lies my problem. Since we applied, I have changed jobs and my other half is only on a contract job for the summer and hoping to get a teaching position in September. If we pull the application from that broker, we will possibly have to submit new documentation which may not help our case.

I guess I just wanted to know if anybody else encountered this kind of a problem before and how they coped with it.

I would also like to make people, particularly FTBs, aware of some of the incapable brokers out there - as FTBs, you hope that someone will guide you along the mortgage route, how wrong I was.
 
I suggest going directly to the bank which approved you for the mortgage. I had a situation whereby I was approved for 250k through a broker with two banks, AIB and Ulster Bank. But when I went directly to Ulster Bank, whom I bank with, I asked for 280k. And got it. I probably could have gotten more as well. It seems that the bank often takes a different view. And even if your girlfriend doesn't have a permanent position yet it's viewed as a 'good pensionable job' and the banks will be falling over themselves to give ye money.
Alternatively go to the brokers boss - bet it'll be sorted out pronto if you do
 
You could apply through another broker or directly to the lender but you will have to submit all the documentation that you sent in to your previous broker. Even if you have this all to hand you are still looking at another 1-2 weeks minimum before you get a new loan offer bringing you back to the stage you're at now.

Maybe you could ask your solicitor to send in the insurances to the lender since the broker doesn't seem capable.

I know it's very frustrating for you, if your broker is charging you a fee you should refuse to pay it for incompetence. Also if you want to make a formal complaint you can contact the Financial Services Ombudsman at [broken link removed] or on 01 6620899.
 
Tell the broker to take a long run off a shirt pier and deal with the bank directly yourself.

They already have all your documents and have you approved so they will need nothing further. Ring them directly and explain your situation. Do not speak to the broker again. If he calls you or emails you ring the guards and tell them you are being harrased by a buffoon. Have him arrested.

I hope you have learned your lesson about brokers and agents. Do not deal with them ever again. Ever.

Deal directly with all institutions yourself. Takes 1 hour to ring them all yourself.

The only reason agents and brokers exist is because this country is full of lazy and stupid people.
 
Yeah, let's tar them all with the same brush. Now what was that you were saying about lazyness.

I'm not a broker, and don't know any, but have used lots. Give them the control you are happy to relinquish.
 
"The only reason agents and brokers exist is because this country is full of lazy and stupid people."

Ballyman, I think that is quite an unfair statement to make. For young FTBs, it is rather daunting when you start out and there isn't exactly a 'How To' guide on applying for mortgages/buying houses. If there is, I certainly haven't been told about it.
 
Hi Househunter.

I am a young (well I'm 31, thats still young) FTB and in the process of closing the sale on my first home :)

However I have also dealt with numerous agents and brokers on my merry little travel towards home ownership and as a result of this I am now passing on some nuggets of invaluable advice to people in the same boat as myself!

We are being made a fool of day in and day out by these so called experts in their field, who, in my experience and dealings, have as much knowledge as I have and as much interest in helping me purchase a home as the wheel of my car.

All they are interested in is the commission cheque at the end. Not me, not you or how we get on but the COMMISSION CHEQUE.

If you don't want to take my advice then don't bother. Go ahead and let some other "expert broker" make a pigs ear of what ever you are trying to do.

And yes, it is daunting but thats what sites like this are hear for. When I started out I was like you, hadn't a clue where to start so I made my first major mistake and headed into my local broker:) Major boo boo on my part but then again hindsight is great!!

The wonders of the internet should have made the muppetry of agents and brokers obsolete for run of the mill issues but it hasn't yet. Some day it will though.

I hope everything turns out ok for you but please take my advice and ask questions here or of friends etc and do the rest yourself. You will save yourself time, money and more importantly your sanity.

Thank you for listening :>

This probably won't last long as Mr. Policeman will either delete/move it to Letting Off Steam!!!
 
Ballyman

I appreciate what you are saying. Having gone through this once, I am all the wiser on 1) the process involved and 2) the danger in trusting these experts. I am sure not all of them are as bad as what you and I have come across so I don't want to paint them all with the same brush but having gone through this disastrous escapade once, I can tell you I wont' make the same mistake again.

Latest update is I have managed to get this referred to the head man of this broker and it would seem (although I am still sceptical due to past misfortunes) that things should be wrapped up in the next 24 hours.

Thank you to everyone who replied to this post. I have learned an awful lot from this but I would not wish it on anyone to have to go through the same saga. I will most definitely be logging a complaint about this broker to some authority.

Thanks again.
 
Hi househunter0

Unfortunately your initial post above appears in Book Antiqua font and, at least to my eyes, is very, very hard to read.
 
Hi Househunter0,

Just waned to sympatise with you as you seem to be stuck between a rock and a hard place, but these guys on AAM know what they are talking about so hopefully that will help you out a little. I also went with a brutal broker at the start, and believe me they are very well known, and had all the same hassle with losing documents, telling me to go ahead with booking deposit etc. I changed over in a major hurry when I copped what I was dealing with, couldn't get them on the phone, email, no contact from him for weeks. So off I went to REA who were the complete opposite to the first place, courteous, reassuring, telling it as it is, and basically kept me informed of everything going on and got everything up and running and applications in etc within a week or so.

So what I'm trying to say is, there are good brokers out there, unfortunetely you got a dud, but hopefully it'll work out for you. And while Ballyman's off trying to run the whole of Ireland's property market, you should ring the bank and/or another broker! Good luck
 
I used a broker and I couldnt praise him enough. I was scepical in the begining and met a few banks but the rates and amounts offered were no different. I had an unusual situatiuon (eg: buying other half of a property, am im self employed) and he was extreamly helpful. I didnt pay him anything so whatever commission he gets from bank he is well due in my eyes. If you get a good broker its worth it , especially in a situation like mine where lots of extra paper work is needed.
 
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