Avant Money clawback commission over 36 months on a pro-rata, month by month basis (36/36ths) i.e. if the loan redeems after 15 months, clawback will be 21/36 of commission.
I just find it odd that they would encourage me towards a 2 year fixed rate instead of a 3 year fixed rate when the broker potentially loses money themselves if a customer switches mortgage providers after their fixed rate term finishes. Like for a broker to get their money they should be encouraging customers to fix for a minimum of 3 years so this avoids these controversies.
But If there is no written agreement am i in the right to not pay them the money?
I asked for the 2 year term to be rectified to a 3 year term but he told me I'd have to do a new application and could take 3 months to get approval.
Also i think when the 2 year fixed term application got AIP i think the obligation should be on them should to tell the customer they are liable for the clawback clause.
Yeah i know it was a lot of work in fairness and i appreciated it. I also gave the company 3 referrals during that time of the delays with my house and have still referred people switching/looking for a mortgage to this day. They all had no issues because they all fixed for 3 years or longer.In the interests of transparency, I'm a broker myself.
If there's no written agreement and it wasn't explained to you at the start then there's no legal obligation on you to pay him back.
Wearing my broker's hat, it sounds like there was a fair amount of work involved with your mortgage. Three applications is a lot of work and the broker only gets paid once. I know the delays with your house weren't your fault. Now 33% of his commission has been clawed back. So he's done 3 applications for 66% of the commission.
On the other hand, he has a responsibility to protect his business from such occupational hazards.
If you asked shortly after the third loan offer was issued, then it shouldn't have required a new application; just a reissued loan offer which might have taken a few weeks. However, if you only asked for the new loan offer shortly before closing, the third application might have been close to its expiry date.
I agree fully. Best practice would be to explain about clawback at the first meeting and follow it up in writing.
But i definitely wasn't told at the start like he claimed in the email he sent.
...and been told it's a free service and the bank pays him.
Still waiting for my agreement/terms of business to be emailed back.
In that case don't let him guilt you into repaying the clawed-back commission if there is no such clause in the agreement you signed with him.I also gave the company 3 referrals during that time of the delays with my house and have still referred people switching/looking for a mortgage to this day.
Last time I took out a mortgage, I paid the broker €500 once I got Approval. That was then refunded to me when the mortgage was drawn-down. There would have been some clawback for the broker on his fee from the bank if I moved within the first 24 months. But it was graduated with no question of any clawback against me.
So we can see that Avant and KBC have a clawback period of 36 months, but for Ulster Bank it is only 24 months.Last time I took out a mortgage [with Ulster Bank], I paid the broker €500 once I got Approval. That was then refunded to me when the mortgage was drawn-down. There would have been some clawback for the broker on his fee from the bank if I moved within the first 24 months. But it was graduated with no question of any clawback against me.
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