Speaking to Mortgage Introducer, a broker, who wished to remain anonymous, said C&G had attempted to back-track on paying him a procuration fee after he had completed a remortgage case. The broker was told the offer would not go forward if he insisted on a procuration fee and stated: “I felt like I was being blackmailed.”
The broker introduced the client to C&G in August last year on a tracker mortgage for £950,000. The client then wished to change to a fix because of rising interest rates and because there were no redemption penalties.
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The broker was told the mortgage the client wanted was an intermediary exclusive and the case would have to be resubmitted as a remortgage. The application was submitted on 22 January.
The broker said: “After several weeks, the business development manager told me that it was going to be done as a straight conversion rather than a remortgage because C&G didn’t want to pay the procuration fee, as I had been paid once before for the case. C&G doesn’t work for nothing, so why should I? It’s a dreadful situation. I’ve been in the industry 10 years and never had this.
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“If it was a conversion, the client could have been moved onto that rate on 22 January. My client is unhappy and waited two months because of internal wrangling. C&G is now prepared to back-date my client’s payments, but it was not prepared to pay me a procuration fee. There’s no logic to it, as it’s going to pay out one way or another.”
The case has now been resolved, with the broker receiving his procuration fee and his client the offer. However, he said: “I’m still disgusted. People ought to be aware of this.”
A spokesperson for C&G said: “Without knowing who the broker is, it is hard to comment, but we’re pleased the case has been resolved.”
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