FD 0.49% tracker and the completion fee issue

Locoblade

Hi All

As some of you may recall, Im remortgaging onto First Direct's +0.49% tracker having originally applied for their +0.99% (then subsequently +0.79%) fee free tracker. I made this jump the day after they announced the offer about 5-6 weeks ago, and when I phoned to confirm I wanted to change, I asked what fees were applicable and was told the only difference between the +0.79% and the +0.49% was the £999 fee, there were no other fees.

FD never sent us a KFI for the new rate as were were half way through the process when we changed, so just sent us the mortgage acceptance letter, the one you sign near the end of the process as the final go-ahead with a KFI style layout of all the mortgage details. This also showed the reservation fee as £999 and the completion fee as £0, with no other fees, so we signed this and sent it back a couple of weeks ago. After a follow up call with them last week to check they'd received it, they claimed not so were sending out new copies.

As I had 3 copies of the original acceptance document anyway (joint mortgage), I simply signed another one of the originals and sent that back to them, recorded delivery, so didnt really need the new documents sending out. When I received these new copies though, I noticed that they'd changed with the completion fee of £145 now listed on there! This backs up others on here who all said they'd been told about this fee when applying, but it wasn't what I was told or what my original documents detailed.

Yesterday I had a call from a team leader at FD saying they'd received our acceptance but they'd need to get us to sign another set of new documents as it should have had the £145 fee listed. I pointed out that I was told on the phone there was no other fee, I received documents to sign which confirmed there was only the £999 fee, and when they sent out the replacement documents they failed to point out there had been a mistake originally, so on the face of it appeared they were trying to sneakily rectify the mistake by claiming they'd not received the original to give them chance to sent me amended documents.

Anyway, although they've apologised, they claim both errors were the fault of the same helpdesk person (who deals with customers on the phone and raises acceptance letters?), and it boils down to the fact that they can't sign off the mortgage without the fee. I suspect in fact that either this fee was added to the deal shortly after it was launched, or it was intended to be on there from the start but FD didn't tell their staff. Either way though, it boils down to the fact that Ive got a choice of either signing the revised documents with fee, or change onto the no fee 0.79 offer.

To be perfectly honest its not a huge issue in the scheme of things, as its only charged if we leave FD and it's not a huge sum anyway, plus I'm still happy overall with their service and the offer so won't jeapordise it for the sake of £145, but I just wondered what the view is of them being able to do this, when they've said one thing, confirmed it in writing on official documents, then changed it in this way fairly late in the day?

atlantis187

There's nothing u can do man They pull all the strings. I think u should just change to the 0.79 rate and be hassle free.

Locoblade

Cheers, the 0.49% still works out best for me though so I'm not planning on changing for the sake of £145. Even if I did want to change at a later date, I suspect I'd quite likely change to another FD product anyway if I find out that offsetting suits our needs, so I wouldnt get charged the completion fee anyway.

ShowMeMoney

Still new to forum..You guys are all brilliant! Thank you!! I was so mortgage naive, its ridiculous...!
I've just spent an hour with FD Mortgage Sales Team. I have opted for 0.79% rate, just cos its hassle free! I am so excited knowing I could reduce my mortgage within 8 years! (currently 14 years with current bog standard A&L variable repayment mortgage).
Locoblade, dude, these are the breaks I suppose...Anyway, we can compare notes on the same but different FD products and see who fares better...!

jiggy2

hi locoblade,

after our valuation came through FD called me to let me know that I could borrow 80% of the valuation.As my property is a new build, I knew the maximum I could borrow was only 75% and the figure she was quoting was wrong...so whilst they would have sent me new offer documents with the 80% I did think that they would then turn round at some later date and say that it wasn't valid, so I actually told them that the percentage wasn't correct (and the person had to go check as she still thought 80% was correct)....she then said that it was something new that had been introduced (but it has been on their site since atleast when i applied - a month before the call - if not more)

also, with regards to the mortgage deed...i popped into HSBC as i was around one...and they said that it has to be signed by HSBC or solicitors(no one else)...whereas you were told it is fine for a friend to sign

so some differences between what the staff know and also what we have been told

overall they still beat any other bank I have banked with

Jig

Gorgeous_George

I think that when someone makes a genuine mistake, it would be harsh to penalise them. For locoblade, the impact is £145. For the FD worker it may well have been the sack.

Yesterday I ordered a part for the oven in my BTL. I wanted it delivered and was told the total bill was £10. I pointed out that I was quoted £10 for the seal some weeks ago and that postage was extra. The guy added the postage and I paid £20. I knew he was making a mistake and so I put him right. I wouldn't have felt too good about myself if I'd seen him off for a tenner.

GG

Locoblade

Yeh I agree, I certainly wouldnt want anyone sacked over it, I was simply enquiring as to when and where (or if) the documents they send you actually become binding. Also it seemed a little odd to me that people who answer the phone are also the same people who draw up the legal acceptance documents etc. I would have thought this type of document would go through a seperate department or at least be double checked before sending out, maybe not though.

atlantis187

Just wanting to know how far ur remortgage application has got Locoblade has it all been set up now?

I'm thinking i've made a mistake going for the 0.79 tracker deal should have gone the the 0.49 one instead because am thinkin of staying on this product for a long term.

With the rate cuts i've also reduced the term of my mortgage from 23 yrs to 20yrs saving me just over £10k in interest.:D

Locoblade

We completed Wednesday, all went nice and smoothly other than a couple of days delay compared to our ideal transfer day of Monday, meaning we were on Nationwide's SVR for slightly longer than we'd have preferred.