1st time buyer - feel misled on deal

DeadCat

Kyrae wrote: »

Hiya! We're also in the process of buying a Barratts home and at first we agreed to use their recommended broker, New Homes, but after problem after problem we've told Barratts that we want to use our own broker.

When we first enquired about the property we did as Barratts recommended and called New Homes to check that we could afford a mortgage, and they said yup fine no problems there's plenty of options with that size deposit and income, and quoted some options from various companies and the rates were good.

Month or so later, deposit paid, and New Homes send an advisor out to arrange our mortgage. He looks on his computer... and it says only one option... we say errr what about all the other ones quoted over the phone? Turns out they'd only quoted based on my partner buying the property on his own, when we had clearly stated I was unemployed at present and we wanted a joint mortgage based solely on his wage. We applied for the one option he gave, and were turned down. We also applied for life and critical illness insurance, and New Homes managed to screw up the application and put my partner down as working 0 hours when he has a full time job. As if that isn't bad enough, we've been charged a £99 fee by New Homes for giving us mortgage advice.

Things are looking up now, I found a job and there are plenty more mortgage options, but the moral of this story is... whatever Barratts say, find our own broker.

Do not use New homes Mortgage Helpline. My 'broker' tried to rip me off by charging the lifetime membership fee of £295 instead of the standard fee of £95. When I confronted him about this he became agressive.

They do not keep you in the loop over your mortgage application and prefer to keep the developer updated instead.

GDB2222

Kyrae - why did you want a joint mortgage? If the lenders were not insisting on you being on their hook, why are you insisting on being on it? Or were the lenders insisting that you couldn't be a joint owner if they were only lending to your partner?

sri

kyrae, thanks for the advice.

Despite asking the sales person twice if I only had the option to go through their broker, the answer was yes. This is outrageous.

The Barratt recommended broker called me and said that he had got the lender to process my application (which he has as I can see it on my experian account) and that the lender is happy to mortagage the amount I am looking for.. he would like to proceed further (appointments, docs, fees, etc)...

I think this is the right time I switched over to a different broker... if I go directly to the lender, will they run a credit check on me again? Or am I tied into this broker now to avoid another search on my report?

Kyrae

We want a joint mortgage as myself and my partner will each be paying half the mortgage and putting down half the deposit, and yup it seems my name cannot go on the deeds unless i'm on the mortgage. Glad to say its sorted now though hopefully

GDB2222 wrote: »

Kyrae - why did you want a joint mortgage? If the lenders were not insisting on you being on their hook, why are you insisting on being on it? Or were the lenders insisting that you couldn't be a joint owner if they were only lending to your partner?

Kyrae

Sri... not sure of the answers to your question sorry as i'm still pretty new to mortgages, but might be worth checking the 'key facts' document they hopefully gave you during your appointment that details all the fees and what you're expected to pay for. Ours said that we owed them an extra £250 payable on completion of our mortgage, unless we arranged life insurance with them as they use the commission paid by the insurer to offset the fee. Our advisor didn't tell us about this he just handed over the sheet and carried on talking in the hope we wouldn't read it!

sri

Thanks again Kyrae for the heads-up to the life insurance.

I have the option of either getting the price down (and put up with the really misleading sales pitch) or to back off and try to get my reservation deposit. I have spoken to my partner and it is most likely it will be the latter.

I will be speaking to the builders again and will post you all on what the outcome is.

Thanks

sri

silversaxman, it is the South East if you want to guess.

Also, I pulled out of the deal and mentioned to the builders that the conduct of the sale was not correct as I have been misled

looks like I might have to fight it out the hard way as I was told that my deposit will not be returned. I am drafting a letter to be sent to the builders head office.

Fingers crossed...

sassy88

Please be gentle this is my first post but i need some help & advice!

I have just gone through a similar process with Bellway. Put a £500 reservation fee down which is to hold the plot from what i can work out. Then paid £300 for a Valuation fee for a mortage through the Halifax.
The valuation came back at £140K but bellway wanted £160k for the house. So after them trying to get us to have a loan for the difference (crazy talk!) and trying all sorts of different splits of part ownership we had no choice but to pull out. Which has left us rather annoyed at loosing money. I realise we cant get the valuation fee back but has anyone a idea of how to get the reservation fee back? We have written too them and called but so far we are just getting fobbed off. This isnt really a surprise but so frustrating!!

sri

sassy88, I am a step behind from what you have gone through as my letter would have reached them today (spcial next day delivery). Did you explicitly mention that you will pursue this further with the trading ombudsman?

Also, I spoke to consumer direct who mentioned that they do not deal with property matters. I spoke to the property ombudsman who adviced me that they would take a complaint only if I have exhausted the complaints procedure with the builder. You are in a situation where I think you have exhausted your attempt to get the money from the builders. Speak to the property ombudsman - the number is 01722 333306. Keep a copy of all correspondences with the builder.

Keep us posted on how it goes.

puddy

sassy88 wrote: »

Please be gentle this is my first post but i need some help & advice!

I have just gone through a similar process with Bellway. Put a £500 reservation fee down which is to hold the plot from what i can work out. Then paid £300 for a Valuation fee for a mortage through the Halifax.
The valuation came back at £140K but bellway wanted £160k for the house. So after them trying to get us to have a loan for the difference (crazy talk!) and trying all sorts of different splits of part ownership we had no choice but to pull out. Which has left us rather annoyed at loosing money. I realise we cant get the valuation fee back but has anyone a idea of how to get the reservation fee back? We have written too them and called but so far we are just getting fobbed off. This isnt really a surprise but so frustrating!!

i think phone calls to bellway (and other builders) in these circumstances should go like this:

hello bellway, this is sassy here, we've had our valuation back for 140k and therefore we are happy to proceed based on that figure as the purchase price, minus of course our reservation fee and the valuation fee as a measure of good will, therefore we now owe you 139 200 quids for the property. i will give you until the end of the day to inform me that you will proceed on the figures above otherwise the sale will regrettably have to be made with another mug or buyer, speak to you later, goodbye