Example 1 – Incorrect arrangement fee

An Introducer produces a Mortgage Brain Premier Plus⁺ KFI for a mortgage that states that the lender’s arrangement fee is £399. When the application is submitted to the lender the arrangement fee is confirmed as £599 for the same product.

If a materially similar product can be re-sourced to meet the client’s requirement of a product with a £399 arrangement fee and the same or lower rate the expected redress will be an ex-gratia payment representing the non-refundable fees that have been paid less £50 excess.

However, if the product cannot be resourced or the non refundable fees are greater than the £200 difference between the incorrect £399 arrangement fee and the £599 actual fee the expected redress would be an ex-gratia payment of £200 less £50 excess, i.e.£150.

Example 2 – Initial payment amount incorrect

An Introducer produces a Mortgage Brain Premier Plus⁺ KFI for a mortgage that states the initial monthly payment for an interest only mortgage is £550 whereas it should have been £575 and the client completes the mortgage.

Assuming another product cannot be resourced the client will be entitled to a payment calculated as the loss incurred in the first 12 months and in this example this would be for 12 months at £25 per month, i.e. £300 less the £50 excess resulting in a payment of £250.

This payment would be made following receipt of proof that the mortgage had completed and payments had commenced.Payments made payable to the broker's client and sent out via the broker. 

Example 3 - ERC

An Introducer produces a Mortgage Brain Premier Plus⁺ KFI for a mortgage that states that the early redemption charge is £800 whereas it should have been £1,200.

Providing that this has been notified to Mortgage Brain within 3 months of the date of the mortgage offer and that the client redeems the mortgage within 18 months from the date of the KFI being produced the difference equating to the actual loss sustained by the customer would be due, i.e. £400 less the £50 excess.

This payment would be made following receipt of proof that the mortgage had been redeemed and that the loss had been incurred.

Example 4 – Product not available

An Introducer produces a Mortgage Brain Premier PLUS⁺ KFI for a mortgage that, upon application to the Lender, is not available. In this instance the application for the product applied for would not be progressed by the lender and, in the event that rates/fees etc. had risen there would be a loss of expectation by the customer but no actual financial loss. The guarantee does not cover product availability.

Example 5 – Incorrect information provided to Mortgage Brain by the Lender

An Introducer produces a Mortgage Brain Premier PLUS⁺ KFI for a mortgage where the fees/rates are incorrect due to the Lender providing incorrect information to Mortgage Brain. In this instance the error is with the Lender and any recourse should be agreed between the Lender and the Introducer.