Under current Consumer Credit Act legislation, if a mortgage does not go through completion, the mortgage adviser must refund all fees to the client with the exception of £5.
Regardless of whether or not the mortgage completes, it is normal for a significant amount of work to go into arranging it. However, if the mortgage does not complete, the adviser has done it all for virtually nothing.
New rules from the industry regulator, the Financial Services Authority (FSA) will allow mortgage advisers to charge for the time spent on the application if it does not complete.
Our view:
This change has long been overdue. We do not believe that anybody, irrespective of what job they do should be placed in a position where if they do a significant amount of work they cannot charge for it. We are sure you would all agree with this basic principle. A fair day's pay for a fair day's work we say!