Do I have a case for complaint?

MoscowFlyer

I took out a mortgage via a broker in 2006, on 2 year fixed payment option. I still have emails from the time this happened, as well as earlier this year, where the broker advised me that our two year deal comes to an end on 31st August 2008, with no early repayment figure payable after this date. Their Key Facts statement also said as much, a copy of which I still have.

They contacted me a few months ago to remortgage to a better deal, which we duly accepted and the offer was put in place. Completion was set for 2nd September and the funds from ourselves and the new lender transferred to the solicitors to complete. Due to !!!! ups from the solicitors, this had been delayed until yesterday. Now the current lender have issued a statement to say that we have to pay an early rapayment fee of over £10k until 31st October. Apparently their mortgage offer states that this fee is payable until that date, even though our 2 year fixed deal ran out on 31/8. The money from the new lender has now been returned to them, the mortage has fallen through and we're expected to pay interest on that money for the two days it was with the solicitors (about £160) on top of the interest on our current mortgage, and the money transfer fees.

So now we can't complete and risk losing our home as we cannot afford the £400 hike in repayments that this month (and next month) brings. I have checked the mortgage offer and the fixed rate did expire on 31/8, but the redemption penalty is payable until 31/10 (which I find rather odd), but I wouldn't have thought to look at this anyway due to the fact I have everything in writing from the broker stating we would not be liable for this fee after 31/8. Do I have a case for complaint against them? It's 'technically' their bad advice that has landed us in this mess.

dunstonh

On face value it does appear that the broker is at fault here and you have a valid complaint against them.

The broker should have been aware of the overhang on the original deal as they arranged it. All the details would be on your client file so there is no excuse for that. So, the costs involved in the aborted transfer should really be refunded to you by the broker based on what you have said. So you should aim for around £250 by the sounds of it.

The £400 increase is not something you can complain about. Nor is the overhang. Mortgage rates are not much higher than they were 2 years ago. You would have had a cheaper deal so an increase was inevitable. It was always going to go up. Interest rates are still historically low and the current level should be affordable still.

Who is your lender and what are the terms of the current deal? I sounds a bit sub-prime (due to size of increase and an overhang). If you can get prime now then it may be worth taking the hit, however undesirable, to get your monthly payments down. It depends if you could save money by Oct 2010 or not. Also, if sub-prime, what caused it to be sub-prime in the first place? A fairly common mis-sale is being sold a sub-prime mortgage when you could have got prime or near prime. If that was the case, then you could have a complaint there. Of course, these are just assumptions and info based on very little information that you have posted. Give us a bit more and we can see we can help.

MoscowFlyer

You'll have to excuse my ignorance, as I really didn't understand most of what you put there with regards to sub prime etc.

All I have with me at work is the initial Key Facts statement I was sent by the broker, check the following links.

http://i36.tinypic.com/10mof80.jpg

http://i37.tinypic.com/10fz5op.jpg


If you hover over the writing you should get a magnifying glass to enlarge the text!

The second one clearly states the redemption penalty up to 31/08/08
[IMG]file:///C:/DOCUME%7E1/ADMINI%7E1/LOCALS%7E1/Temp/moz-screenshot.jpg[/IMG][IMG]file:///C:/DOCUME%7E1/ADMINI%7E1/LOCALS%7E1/Temp/moz-screenshot-1.jpg[/IMG]

_Andy_

What was stated on the actual offer letter?

MoscowFlyer

The offer letter itself states a redemption fee is payable until Oct 31st, but as I said before, I know it's up to us to check this, but we were going on what our mortgage advisors 'advised' us. All we were worried about at the time was getting the offer letter and getting the mortgage in place. It's the fact they've contacted us to get us to remortgage through them and have misinformed us for a second time, having not given us the full details to begin with.

shed35

Contact the Finanical Ombudsman (FSA) to complain as they regulate mortgages. Find out their procedure for complaints

I to went brought a mortgage through a broker and I won't bore you with the details but when it got complicated, he did not know what to do (was not all his fault) and I wanted sought it myself but couldn't because I was tie in with him.

You seem have all paperwork and that is the important thing.

_Andy_

Well if the mortgage offer states you're tied in until 31/10/08 and you signed it without checking it, I think you need to take responsibility for that.

MoscowFlyer

_Andy_ wrote: »

Well if the mortgage offer states you're tied in until 31/10/08 and you signed it without checking it, I think you need to take responsibility for that.

And think nothing of the fact my mortgage advisor has given me poor advice, resulting in my remortgage not going through? I'm not an expert on mortgages and don't pretend to be, which is why I got someone to do it for me. The fact is that it's there in black and white to see they've given me the wrong information, and as I'm dealing with them and not the lender, I think I have every right to feel agrieved.

_Andy_

Can't your new mortgage offer be extended until the end of October?

MoscowFlyer

No, the brokers did it three months in advance and the offer is only valid until this month. Their silence over the whole thing has been deafening in the past 24 hours so maybe they're trying to sort something out with the proposed new lender, they do know they've messed up though.

_Andy_

Which lender is it (as in the new mortgage) ?