Remortgage shortfall - advice urgently required

archie1

HI - I hope someone can help me as I recently was advised to remortaged my home and also to add on any existing loans I may have within this re-mortgage. I asked the broker to include a personal loan I had taken out the previous month of £4k to be included. Therefore in December, I redeemed my existing mortgage and took out another mortgage with another provider. The advice from my mortgage broker was all well and everthing went through ok or ....so I thought!

I have now realised that the calculations the broker provided was not as accurate and they have not included the £4k loan within the mortgage. The mortgage has now been completed through the solicitors and the first payment was £690 instead of £475. I still have to pay an extra £92 per month as the monies to pay of the loan was not included as well as pay a new higher mortgage figure which has obviously caused me a problem financially this month.

Has this happened to anyone and is there any advice regarding my situation? Do I complain and if so to whom? Please help!!

Trying_to_be_good

The first mortgage payment is always larger than a normal monthly payment as it includes the interest for the month in which the mortgage was taken out, plus a normal month's interest (e.g. if taken on 15th December, would include interest from 15 to 31 December and 1 to 31 January). This should be detailed on the offer or other documentation.

Check the Key Facts Illustration and offer from the mortgage company. Check your Maths and the written instructions to the mortgage broker/financial adviser. Phone and ask them, though I don't know how succesful you'd be at getting the mortgage company to lend you the extra £4k (you don't know unless you ask).

Good luck