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  • FIRST POST
    • Em_hornet
    • By Em_hornet 8th Jan 18, 5:56 PM
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    Em_hornet
    Surplus from mortgage - broker
    • #1
    • 8th Jan 18, 5:56 PM
    Surplus from mortgage - broker 8th Jan 18 at 5:56 PM
    Good evening all,

    We’ve recently remortgaged with a new provider and had additional borrowing and the arrange,ent fee added to the mortgage. Our broker advised us that we would receive the difference between the new mortgage amount and our redemption figure, however now it has completed we have only received the additional borrowing and have been informed that our monthly payments will be reduced. I understand that FCA rules have changed which is why we haven’t received the additional money we were expecting. Do we have any rights on this given we based the additional borrowing figure on advice given to us by our broker? We would have applied for a higher amount for additional borrowing had we known.

    Any help/guidance would be appreciated.

    Thank you.
Page 1
    • ACG
    • By ACG 8th Jan 18, 6:06 PM
    • 16,094 Posts
    • 8,277 Thanks
    ACG
    • #2
    • 8th Jan 18, 6:06 PM
    • #2
    • 8th Jan 18, 6:06 PM
    How much were you expecting to receive in your bank account?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Em_hornet
    • By Em_hornet 8th Jan 18, 6:11 PM
    • 5 Posts
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    Em_hornet
    • #3
    • 8th Jan 18, 6:11 PM
    • #3
    • 8th Jan 18, 6:11 PM
    We were expecting £7,450 but actually received £5,750. Interest rate is 1.99% so we wanted to use the mortgage rather than getting a loan.
    • dunstonh
    • By dunstonh 8th Jan 18, 6:23 PM
    • 90,325 Posts
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    dunstonh
    • #4
    • 8th Jan 18, 6:23 PM
    • #4
    • 8th Jan 18, 6:23 PM
    The solicitor would normally give a breakdown. Any indication of that of the difference?

    Did you add fees to the mortgage?

    The amount is an exact figure of £1700. Can you think of anything that it could refer to?

    I understand that FCA rules have changed
    Nothing recent.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • TrickyDicky101
    • By TrickyDicky101 8th Jan 18, 6:28 PM
    • 2,884 Posts
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    TrickyDicky101
    • #5
    • 8th Jan 18, 6:28 PM
    • #5
    • 8th Jan 18, 6:28 PM
    So presumably you have quite a large mortgage and the difference between expectation and reality is down to the rate of interest on the old mortgage thus accruing interest (which needed to be paid from the new mortgage proceeds)?

    If you provide full information such as redemption amount, date redemption figure issued, rate of interest on old mortgage, completion date (or when old mortgage actually repaid with new mortgage) and your normal monthly repayment amount (on old mortgage) and date you normally paid it, we can work out the maths.

    EDIT: Or as dunstonh says, is it the fees?
    • Thrugelmir
    • By Thrugelmir 8th Jan 18, 6:34 PM
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    Thrugelmir
    • #6
    • 8th Jan 18, 6:34 PM
    • #6
    • 8th Jan 18, 6:34 PM
    Could you provide some detail behind the numbers. As I'm sure there's self explantory reason.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • Em_hornet
    • By Em_hornet 8th Jan 18, 6:58 PM
    • 5 Posts
    • 0 Thanks
    Em_hornet
    • #7
    • 8th Jan 18, 6:58 PM
    • #7
    • 8th Jan 18, 6:58 PM
    Thank you for your replies so far. Breakdown of numbers is as follows:

    Amount of remortgage: £238,000
    Arrangement fee (added to mortgage): £650

    This amount shows on our new mortgage account.

    Redemption figure from Halifax: £231,232.66
    TT fee: £30.65

    Surplus would therefore be £7,386.69
    Actual amount received: £5,752.35

    So we have a difference of £1,634.34 which is the difference between the redemption figure we based our mortgage application on and the actual redemption figure. We were told that they can’t refund this because of changes to FCA rules. I have an email from my broker confirming that we would receive the difference between the two amounts.

    Hopefully that is a bit clearer.
    • TrickyDicky101
    • By TrickyDicky101 8th Jan 18, 7:01 PM
    • 2,884 Posts
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    TrickyDicky101
    • #8
    • 8th Jan 18, 7:01 PM
    • #8
    • 8th Jan 18, 7:01 PM
    Interest rate? Dates? If it is due to interest accrual we can't calculate that impact without these pieces of information.
    • Em_hornet
    • By Em_hornet 8th Jan 18, 7:10 PM
    • 5 Posts
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    Em_hornet
    • #9
    • 8th Jan 18, 7:10 PM
    • #9
    • 8th Jan 18, 7:10 PM
    The redemption figure quoted is the actual redemption figure. That is what paid the previous mortgage. There will be a few days interest which was quoted as £25 per day (between the 2nd January and the 5th January) - this is the interest payable between our last monthly payment and the date of redemption.

    I’m fine with the actual amounts, it’s more the incorrect information we were given, I.e that we didn’t need to apply for a higher additional borrowing amount as the extra we would have paid off on our mortgage would cover us. It has meant that we are down on where we expected to be.
    • Em_hornet
    • By Em_hornet 8th Jan 18, 7:51 PM
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    Em_hornet
    Just to also add that the £1,634 amount is being used to reduce the mortgage amount on the new mortgage so it isn’t a discrepancy in interest owed but that we can only do a like for like transaction. Our broker told us differently hence we were expecting the additional amount in our bank account.

    In essence we’ve already paid the booking fee plus some of the loan amount which kind of defeats the object of putting the booking fee on the mortgage.
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