Mortgage Broker - poss incorrect info?

chrispier_2

I've been dealing with a mortgage broker (independant + whole of market) to obviously sort out a mortgage on a flat, I originally stated that I wanted a product which had no early repayment charges, but was then led towards a 3 year tracker (A+L), which did have early repayment charges if the mortgage was paid off within the 3 years, but I was told that I could pay as much as I liked off in this period, as long as it wasn't the full balance, with no extra charges. However, having been on the A+L site for myself, looking at what I believe is the same product, it says that there is a 2% early repayment charge for overpayments over 10% of loan value within the 3 years. I told the broker quite clearly that I had another property to sell, and that when it does, it is my intention to either clear the mortgage or a large chunk of it.

I have already instructed them to go ahead and paid for the property valuation - this was before I saw the above on A+L website.

Do mortgage brokers have different offers available to them than are available to the man in the street?

Senior_Paper_Monitor

Check ...

1) Your KFI which will include information about overpayments and Early redemption Charges.

2) Your 'Record of Suitability Letter' (if your broker has issued you one - not all compliance processes currently require the use of this document on low risk mortgages) which will state your preferences and the brokers advice.

3) If 2 not available ask for a copy of your 'Fact Find' document which would have been used to collect your information including preferences (again some compliance processes require that you would have seen and signed this but not all)

It is possible that your broker has access to something different to the product you have seen on the lender site (I can't recall whether this is currently the case for A&L - and the broker's company/network may have different deals to us anyway).

TMSL

Sometimes we do but I think on this occasion your broker may have it wrong as I know of no such product.

chrispier_2

On the key facts document it covers early repayment charges but it reads like it applies only if you clear the full balance within the lifespan of the tracker deal, and there's no mention of extra charges in the overpayments section, only that the interest will be recalculated monthly if under £500, daily if over £500.

chrispier_2

Their product recommendation/suitability letter does not mention anything about my intention to sell another property/overpay etc. I haven't yet signed this to send back (arrived this morning).

Senior_Paper_Monitor

I suggest you advise your broker in writing (email, fax or post - or combination) at the earliest opportunity of your concerns.

His/her response will 'tell all' and then you can see what can be done - if it becomes a complaint (and hopefully it won't) then your earliest written advice is vital - and gives the broker and lender most chance to sort it out before any damage done.

VIGILANT22

[QUOTE=TMSL;29058355]Sometimes we do but I think on this occasion your broker may have it wrong as I know of no such product.[/QUOTE]

A&L DO offer flexible mortgages direct and intermediary !?!?

What are the benefits of a flexible mortgage?

With an Alliance & Leicester fully flexible mortgage you can vary the payments to suit your circumstances. If you’ve got extra cash, use it to pay off more of your mortgage. Keep up the overpayments and you could pay off your mortgage years early. And that could save you money, subject to status

http://www.alliance-leicester.co.uk/mortgage-information/flexible-mortgage.aspx

chrispier_2

Ah, I didn't see the flexible mortgages, although it still doesn't look right because they've quoted me the rate from the 3 year non flexible tracker (base + 2.19%). I'll call them tomorrow and ask them, and get them to put it in writing.

Thanks everyone. Might be back tomorrow!

VIGILANT22

chrispier wrote: »

Ah, I didn't see the flexible mortgages, although it still doesn't look right because they've quoted me the rate from the 3 year non flexible tracker (base + 2.19%). I'll call them tomorrow and ask them, and get them to put it in writing.

Thanks everyone. Might be back tomorrow!

Check your KFI under section 4. Description of this mortgage (Mortgage product)

Call by all means to reassure yourself..:)

3 Year BRT BBR +2.19% (Flexible) Max 70% LTV
Min:£25000
Max:£550000

https://www.secure.intermediary.co.uk/Product_Navigation/Unsecure/Products/Common/Products_QuickReferenceSheet.asp?stream=Prime

chrispier_2

Ah ha! You're right, it does state that it's both fully flexible and the interest rate is correct. Now why didn't I see that yesterday, dur.

Thanks Vigilant!

Leon_W

Yes. That deal is only available exclusively through brokers and not available either directly from Alliance and Leicester or through their website.