Mortgage Broker lied to us

Panch

My husband and I are both in the forces. We bought our house Jan last year and we currently have a 3 year fixed rate mortgage with Birmingham Midshires. Both my husband and I are posted roughy every 2 years.

We were told by our broker we would be able to temporarily rent our house on our current mortgage and would only have to pay BM a fee of £200. Due to probably being posted soon we decided to ring BM to confirm we would like to rent our property very soon. They told us they would not be able to do this unless we changed to a buy to let. To do this we would have to pay another 15% of our mortgage and also pay an ERP of £9500.

We have contacted our brokers company and they have confirmed we have this on our file.

So far, they have tried to tell us that BM may have changed their policy
- They haven't BM have informed us they have never allowed this.

Also they have told us maybe we should rent without informing BM
- To which we told them a definate no. They have now said to write in a letter of complaint.

Now we are both wondering where we stand. Thanks for any replies.

unite79

BM have told you they never used to give consent to let - Think they may be telling you porkies!

Apologies, allow me to retract that, BM have always insisted on amending a mortgage onto a Buy to Let basis which means in the event you have an ERP (redemption penaly) they will charge you this!

Dan_1976

I think unite79 is correct. double chekc op.

dunstonh

I wonder if the broker based their comments on the following: (copied and pasted)

Mortgage is Portable

You can keep this product if you move to a new property and take out a new mortgage with Birmingham Midshires, provided that the new mortgage is for the same amount and is taken out within 6 months of repayment of this loan. If this occurs, any early repayment charges (detailed above), will not be payable.

However, if the new mortgage is taken out in different names Birmingham Midshires will not waive or refund these early repayment charges without the written consent of all original borrowers.
If either the scheme or your circumstances change, you may not be able to keep this product, and any early repayment charges (detailed above), will be payable.
When moving house you will be unable to keep this product if your level of adverse credit increases beyond the maximum allowed.
　
Let to Buy accepted on the condition that the mortgage placed with BM Solutions is intended for the residential property. For applications based on properties to be 'let' please see the BM Solutions Buy to Let product range.
The maximum LTV for Buy to Let new build flats and apartments including newly converted (within 12 months of application) and previously unoccupied flats is 75%.

koexelek

I don't think the broker necessarily lied, but it was foolish to tell you something like that when lenders are currently chopping and changing their lending policies almost daily.
I'd want something in writing from the lender before I committed to telling someone something like that