Valuation charge for mortgage we didn't take

D

dunner

Registered User
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Hi folks,

Just wanted to see if I have any comeback with this.

When arranging a mortgage for our house we approached a mortgage broker. We filled in the necessary application forms specific to this broker and he came back to us with a mortgage offer from TSB. However he said there were no other lenders interested.

We thought this was a bit strange so contacted the lenders directly ourselves and managed to get a further 2 mortgage offers from ICS and First Active.
We eventually chose First Active, thanked the mortgage broker for his help and thought that was the end of it.

This week we received a bill from the broker for a valuation that was carried out on our house. He said that if we chose the TSB mortgage he had arranged for us he would have paid for it but seeing as we didnt we would have to cough up the E127.

Does this seem right? Should you have to get a valuation for every mortgage offer you receive? The only forms we signed with him was the initial Broker mortgage application form. He didnt advise us at any time that we would have to pay the valuation fee if we did not choose to go with him.

Any advise would be appreciated.

Dunner
 
Re: Valuation charge for mortgage we didnt take

Dunner,

You are liable for it I reckon... the banks don't pay for valuations generally and as the broker didn't get the biz (for whatever reason) he's not going to pay for it either... if you signed T&Cs with him it's probably in there somewhere...
 
Re: Valuation charge for mortgage we didnt take

Did he just get approval in principle from TSB or formal approval ? Wouldn't that impact as to when a valuation would take place. For approval in principle would they have even gotten to do a valuation - I would have thought not but lenders may differ on this . I know that we only had to concern ourselves with the valution once we requested broker to go ahead with this as we wanted formal approval. Also - not that you have chosen first active would they be able to use the previous approval ? You may need to check if the valuer is on their list and have the valuer send an updated valuation report on FA documentation.. Also - get an invoice from the broker to confirm who did the valuation and if you're concerned contact valuer directly.
 
If the broker came back to you with a full loan offer from PTSB, then a valuation would have been done, so why should he have to pay for the valuation, when you have not given him the business, he would have a some cost to bear already, i.e. time, admin etc in getting the mortgage approval, it would be only fair that this is paid for,
 
I have delted the inflammatory comments on brokers. Try to keep the discussion civil please and note our Posting Guidelines on use of profanities etc.

Thanks.
 
Ask him for a copy of the valuation report. It's possible no valuation took place and he is chancing his arm. If a valuation did take place, you may be liable for the fee. Perhaps offer to pay half.
 
The broker should have asked you for the valuation fee before instructing it thereby giving you the opportunity to accept it or decline. If I took it upon myself to arrange a valuation without the client's go-ahead (or more importantly the cheque!) and the client goes elsewhere then that's my mistake. Unless there is anything in writing (or email, etc) where you agreed to pay a valuation fee then I don't think you are liable.

As an aside if a lender approves a mortgage, a valuation is carried out on the strength of that approval but the mortgage is subsequently declined the lender will refund the valuation fee.

Sarah

www.rea.ie
 
If you did not request a valuation or instruct the broker to go ahead and recieve full approval you should not have to pay. However you may have signed something unknowingly which gave them the go ahead to value the property at your expense. Either way they should have explained to you if you were about to incurr the cost.
If you are liable you should ensure you get the valuation report before you pay. This can then be used to gain full approval with other lenders.
 
dunner said:
Hi folks,

Just wanted to see if I have any comeback with this.

When arranging a mortgage for our house we approached a mortgage broker. We filled in the necessary application forms specific to this broker and he came back to us with a mortgage offer from TSB. However he said there were no other lenders interested.
Any advise would be appreciated.

Dunner
Click to expand...

Dunner - what broker did this happen with as a matter of interest?
 
Dont think i'm allowed to say Candyman under the forum's rules and regulations. PM me if you like.

We're in discussion with him now. He has admitted that we did not sign anything to say he should request the valuation. All we needed from him was provisional approval whereas he proceeded to get us a mortgage offer when we never gave him any indication that we want to go with the PTSB offer he arranged.
If he had done his job correctly he should have been able to get us approvals from the same institutions that we did ourselves.
 
I just got an email back from our friendly broker. He's backed down completely and said he'll foot the bill for the valuation! What a bloody chancer... he obviously knew he hadnt a leg to stand on.
I wouldnt be at all surprised if PTSB had refunded him the valuation cost and he was trying to make a tidy profit by trying to charge us aswell.

People like this guy are what makes buying a house such a stressful experience... feel free to PM me if you'd like to know who the broker is.

Thanks to everyone for their advice.
 
I wouldnt be at all surprised if PTSB had refunded him the valuation cost and he was trying to make a tidy profit by trying to charge us aswell.
Click to expand...

just as well you did'nt name & shame, as i don't think the legal department would welcome this remark.
 
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