The borrowers sought a second loan of £8000 to pay off the arrears from a mortgage broker after falling behind with their mortgage payments. . The lender, Hurstanger Ltd, provided the borrowers with documents that included a document that authorised payment of the broker’s arrangement fee of £1000 out of the loan. Another stated that the broker was acting as the borrowers’ agent and that “in certain circumstances [the lender] does pay commission to brokers/agents…We will pay monies to your broker strictly in accordance with your signed authority by the deduction from this advance”. The borrowers signed the documents and the lender
