Mortgage Broker fee Fair???

[sam23]

Hi everyone, I have just come across this website after links from MSE, I have to say its been so helpful so far.

I just wanted some opinions on my legal standing on a brojer fee which I am being chased for.

I have recently applied for a bussiness loan to purchase a commercial property, I have applied via a broker who charged me an initial £400 fee and then would charge me a 1% commision on th loan amount for the introduction to the bank. To cut a long story short the deal for the purchase fell through leabing me out of pocket after paying for numerous surveyor cost etc, I later decided to go back to the bank and refinanced a loan deal with them which was not dependent on the purchase but a straight loan.


I have now received a demand for the 1% fee in excess of £5000.00 from the broker although I have tried to explain to them the original deal fell through and I did not go ahead with the property purchase.

They have transferred it to a debt collector which I am going to ignore anyway, just so I can get some advice where do I stand legally. In relation to me agreeing a fee no type of contract exisit apart from an a4 paper with a paragraph that I agree to pay them 1% fee which I initailly signed and dated.

Any help would be greatly appreciated.

Thanks

Sam

[Charlie505]

Re: Mortgage Broker fee Fair???

Sounds suspect Sam. For an expert view I would suggest you contact AMI (The Association of Mortgage Intermediaries). Send an e-mail to Robert Sinclair.

[wales01man]

Re: Mortgage Broker fee Fair???

I Would have thought as a contract was signed and if the broker obtained the mortgage then the OP pulled out the fees are payable,after all the broker did his job .
As the OP is in business if someone signed a contract with him and pulled out after the work was done would he let it go?
Im dont usually side with brokers but as i see it right or wrong its payable,maybe a compomise can be found before it becomes a gamble in a County court case