need to know where i stand

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Post by ak20 » Wed Jan 30, 2008 11:54 pm
I am currentley in an IVA programme, which started april2006, in
november last year i approached an independent mortgage broker to
arrange a remortgage as my current lender intrest rate has gone up to
10.2%, he arranged a new mortgage for me through birmingham
midshires, this remortgage would have covered my current mortgage
plus any fees incurred, i was planning to pay this broker his fee
after my mortgage completed however when i told my solicitor that i
was in an iva he said i had to declareit to birmingham midshires, i
had no problem with this and i had already spoken to my iva
practioner about my remortgage and they we're happy with me
proceeding, however when birmingham midshire found out that i am on
an iva they have reduced my mortgage which only just about covers my
present mortgage hence not leaving me with any funds to pay any fees
etc, i did say that i would pay the fee after completion but as the
situation is now i simply cannot afford to pay this fee which is
£1000, i have since received a letter from the broker stating i have
3 days to pay this fee or they will take me to court and charge me
for any expenses etc they have also stated that i could have a ccj
against my name etc.

I just need to know where i stand with this, financially it is
impossible for me to pay this fee, i can just about cope with my
payments now, my current mortgage is extremley high the other bills i
just about stuggle to pay, can they take me to court and claim their
fee and any other costs??

If i am taken to court it will be seen that my current financial
status cleary shows that i am in no position to pay this fee.

I would be most grateful for your advice.

Many Thanks


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Post by MelanieGiles » Wed Jan 30, 2008 11:58 pm
Hi ak20 and welcome to the forum

I am sure that one of our resident mortgage experts will have something to say about this - and as you were in an IVA in any case this would have had to have been disclosed as part of the application surely?

So I suggest that it is the broker who has wasted your time, and I suggest that you look elsewhere to someone who can probably get you a better deal. There are three excellent people who regularly post on the forum - Tony Parsons, Andrew Graveson and Mike Burridge, so hopefully they can give you expert advice in this area.
Regards, Melanie Giles, Insolvency Practitioner


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Post by james.c » Thu Jan 31, 2008 12:26 am
I have spoke to morthahe brokers from this forumn, and in an IVA they have said i should be able to get a mortgage at 6%

Andrew Graveson

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Post by Andrew Graveson » Thu Jan 31, 2008 12:43 am
I'm surprised to hear that a mortgage broker would not disclose an IVA on an application, and that the lender would not pick up on this when they credit-checked the application. Is there any scope for misunderstanding here?

Was the brokers fee meant to be included in the funds released via remortgage? Did the broker miscalculate it? What did the broker have to say when BM changed the amount that they would lend?

In terms of the point that James makes I think sadly that many people in IVA's would not achieve such an interest rate on a new mortgage at this time but it all comes down to personal circumstances.
Andrew Graveson
Bright Oak Ltd
UK Debt Management Company

Welsh Boy

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Post by Welsh Boy » Thu Jan 31, 2008 8:26 am

Read your post with interest, your iva would have to be declared when you filled out the mortgage application it is a standard question on every application form that I have seen.

Who said they could get you a rate of 6% whilst in an iva, did they do a search on you and then report this rate back to you along with the lender.

What explanation did you get from the broker for the revised/reduced offer, and why would you want to go forward with it if it doesn`t achieve your objective. You are under no obligation to accept the offer if it isn`t what you want, did the mortgage actually complete.

Were the fees built into the mortgage, or were you to pay these seperately.

I can`t advise on what would happen with the payment of a brokers fee through a court I have never been aware of this ever being an issue, a lot of brokers have their fees built into the new mortgage with the clients permission negating any such incident of fees not being paid, as a matter of fact when there aren`t enough funds available in many instances I would have to waiver my fee or a proprtion of it. There are brokers who would put a charge on a property to get the fee eventually paid, but personally I wouldn`t do that.

I presume you signed a fee agreement with the broker, and can see after re-reading your post that the mortgage must have completed for you to now be having to pay a fee.

Out of interest what rate did B. Mids offer you when they found out about the IVA, this would have been detailed in the kfi document you would have received from the broker.
F.P.C. 1,2,3 Qualified
Financial Planning Certificate
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Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
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Principal : All Mortgage Products

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Adam Davies

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Post by Adam Davies » Thu Jan 31, 2008 1:26 pm
I would speak to your IP and see if they can help.
It maybe that they can give you a three month payment break in order for you to pay the broker fees.The missed payments can be tagged onto the end of your IVA.
I am surprised that the mortgage co did not pick this up on the credit search or your application form,presuming that you declared your IVA.
Andam Davies
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