Fsa Rules On Mortgage Fee Disclosure

[akajonnyg]

Hi all, does anyone know what the FSA states are the rules about mortgage brokers disclosing fees and terms to a customer. What (and when) must be legally disclosed to a mortgage applicant. I have just applied for a mortgage and was never given any info regarding fees and then once the mortgage was agreed I was hit with a bill for £495 from the broker. Its not really a problem, and I am going to pay it, but I am annoyed that I was never informed of the fee before I had incurred it!

[Buenchico]

The FSA ceased to exist 17 months ago.

The Financial Conduct Authority (which has taken over part of the work of the FSA) states "An adviser should tell you about their charges and the range of mortgages they offer in your first conversation with them":
http://www.fca.org.uk/consumers/financial-services-products/mortgages/mortgage-market-review/getting-mortgage-advice

[akajonnyg]

Thanks Buenchico. Thats exactly what I was looking for.

[akajonnyg]

Just one more thing. I have now mentioned this to the broker who has told me that if I choose not to pay he has access to my credit file and will very quickly make sure that the non payment is recorded......appaently, according to him he can do this because he is a broker and has access to peoples credit files....surely this cannot be the case, he must go through the proper channels in order to reduce my credit score?? Any help always appreciated

[Buenchico]

Well that's an interesting (and unusual) threat!

To the best of my knowledge, mortgage brokers simply find possible suitable mortgages for their clients and then bring the two parties together. It's then the lender (rather than the broker) that carries out credit checks, so I doubt that the broker has any direct contact with credit reference agencies.

I can't see anything here that would suggest that credit reference agencies obtain information from people like mortgage brokers:
http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Further, that threat seems to be 'grasping at straws', as the normal threat (where someone believes that they haver a legitimate right to receive money from you) would be to take legal action through the Small Claims Process.

My FCA link above has a telephone number (at the top right) for their consumer helpline. It might be worth phoning them for advice.