told fixed rate offer was mistake - advice please

welshboyk

Hi all,

my current 2 year fixed rate deal with Halifax @ 4.79% ends on 31/12/08.
my LTV is 87%

I have been approved for a 5yr fixed rate deal with HSBC @ 6.27% and have paid my £599 admin fee.

Halifax have offered me a new 2 year fixed rate deal @ 4.69%, admin fee being £1200.

So I phoned HSBC to see if they could lower their offer, bearing in mind my current lender has offered me a very competative rate. They phoned me back and asked me if I would accept a 5 year fixed rate deal at 4.69%. of course I said yes. The operator then asked me to confirm that I have accepted his offer of 4.69%, I agreed I accept the offer, following which he said he would work out the figures and get back to me.

I was over the moon etc. He phoned back 1hr later to say that he had made a mistake and that he'd read his email wrong, and that the best rate they could offer me is 6.99%.

My question is, do they have to honour the rate offered to me, i.e have we made a verbal contract, bearing in mind the conversation will be 'recorded for training purposes' and he is likely to have documneted the info on his system??

I would be be very grateful for any comment on this topic.

Hope you all have lovely Christmas and all the very best for 2009.

Kind regards

Matt

dunstonh

My question is, do they have to honour the rate offered to me, i.e have we made a verbal contract, bearing in mind the conversation will be 'recorded for training purposes' and he is likely to have documneted the info on his system??

No. They have no requirement to honour that rate.

Not until you receive the Key Features Illustration and have signed the offer letter do the terms get confirmed. Even then they can withdraw them. The only time you know for sure is when the lending has been completed.

_Andy_

Hi Matt

As Dunston says there's nothing meaning they have to honour it.
Seems like the person you spoke to made a legitimate mistake - on the website the 5 year fixed 'special' is the rate you were eventually offered.
Not sure where the CSR got that rate from but put it down to an error. Not ideal but there's not going to be any point in complaining.

Something that did occur to me reading your post is that you're now looking at a 2 year fixed rate - are you sure you're happy paying £1200 for such a short period, especially as it seems you wanted longer term stability originally?

Thanks

welshboyk

Thankyou for your replies to my query, much appreciated.

I am going to stick with 5 year HSBC deal @ 6.27%.

I have 2 young kids and I could go onto my current lenders SVR of 4.75%, however I want the security which a fixed rate offers me, as I potentially could lose the equity I currently have in my house to falling house prices, therefore reducing my mortgage product options in the future.

All ther very best everybody for Christmas and the New Year.

Matt

Rick62

Hi Matt,

Stay with Halifax, they now have 5 year Fixed rates for existing borrowers of 4.99% and 5.19% (eg, 95%, 4.99% with £1249 fee).