What are my mortgage broker's responsibilities?
-story summary:
-- mom applied for mortgage
-- she needed some supporting docs "made"
-- before her mortgage was approved
-- she asked mort.broker if she should give estate agent deposit
-- mort.broker said hes confident that mort will be done
-- she gave deposit
-- the lenders asked for original supporting docs.. there were none.
-- thus, mort. declined
-- mom lost deposit.
Can she take the mort.broker to court??
She was the one who went to him to "make" the docs and make the application for the mortgage.
She's in for trouble if she reports him, right?
Answer:
I assume your mom is in the UK here.
If so, sorry but there is not much she can do. All mortgage brokers must be authorised by the Financial Services Authority, and follow strict rules on how to arrange and advise on a mortgage.
There are complaints procedures in place, and these should have been advised to your mum at the time..If not refer to the FSA website ( www.fsa.gov.uk) or the Financial Ombudsman Service (www.financial-ombudsman.org.u.
Unfortunately, I think what has happened to your mum will not be something she can claim against the broker for. You say broker said he was confident that the mortgage will be done - this is different to saying it will be done, there is still the potential for it to not be done.
Also in my experience with complaints against mortgage brokers, it is very likely that they will deny having told your mother it was ok to pay the deposit. It is then your mums word against the broker and the Ombudsman Service will side with the Broker.
You may like to speak to your local citizens advise beareau, who might have other advice.
Good luck.
To rip you off and take your money - see my post and understand these pigs steal your money!
They will suck your money like leech
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