Mortgage Mis-Advice

moomoobonk

Hi

Really in need of some advice. We are on a fixed rate mortgage with Abbey National that is due to end at the beginning of November. Over a month ago, we spoke to the Abbey about remortgaging. They told us they could convert us at a good rate, reasonable arrangement fee etc. We agreed and they told me there was nothing to sign, it had been arranged and the paperwork would be in the post. We haven't received any paperwork but assumed all was ok since we were told it was being done there and then. Spoke to the Abbey today and they are now saying that we were given the wrong advice and that the mortgage was not available to us and there is nothing we can do about it. To switch to standard variable is going to cost a fortune, to switch to another fixed rate has a huge arrangement fee and again, the diff in interest rate they are now offering is a huge increase. Switching to another lender will be a nightmare because the value of our property has dropped.

Is there anything we can do? To me this appears almost fraudulent since they advised it was fine and was being actioned and have not contacted to let us know there has been a problem. At the time we were offered quite a good rate by another lender which has gone now....

Really grateful for any advice.

Thanks

Ian_Griffiths_Halifax

Ask them to provide copy of your telephone conversations with them, I think they save them as wap files, and then take them to the FSA.

They misled you and this has meant you have lost out on an alternative deal with another lender.

As far as you are concerned the transaction was done and dusted there and then over the phone. You weren't advised otherwise and a verbal agreement is just as binding as a written one if it can be proven AFAIK. The telephone transcript should give you this evidence.

Make them pay.

moomoobonk

At the moment, shell shocked and terrified but I am really going to try to make them pay, just don't know if we have a leg to stand on legally.

dunstonh

The FSA and the FOS understand that mistakes can happen. They will not penalise the firm for a mistake like this. It's different if an adviser had been used but not if a call centre giving out information is used. Had you acted on the information then that is a different matter. If doesnt matter if another deal with another lender was or wasnt available to you.

You can complain but you would probably only be looking at a typical goodwill gesture only and not the deal want.

Ian_Griffiths_Halifax

The 'mistake' cost the OP money and so they should be brought to task.

dunstonh

Maybe it did but impossible to prove. Picking the best deal with hindsight is easy. Proving your intention to look at that deal is harder. It a mortgage adviser had been used then its possible as they would have a record of the enquiry and the figures given. If a KFI was obtained then its possible.

However, did it cost any money with the mortgage at Abbey? No. And thats where it is likely to hit a dead end as the deal was never available. So, the OP is not financially worse off. The error cost a few weeks with more than enough time to find another deal.

Ian_Griffiths_Halifax

dunstonh wrote: »

Maybe it did but impossible to prove. Picking the best deal with hindsight is easy. Proving your intention to look at that deal is harder. It a mortgage adviser had been used then its possible as they would have a record of the enquiry and the figures given. If a KFI was obtained then its possible.

However, did it cost any money with the mortgage at Abbey? No. And thats where it is likely to hit a dead end as the deal was never available. So, the OP is not financially worse off. The error cost a few weeks with more than enough time to find another deal.

Not if they weren't told that it was an error, as in this case.

I agree it would be difficult to prove to what extent the OP 'lost out' but unless lenders are tackled on these issues, they'll continue to mess around with peoples lives.