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FTB chosen Abbey and want to pull out
nomnomnom
Posts: 229 Forumite
I know this sounds stupid. We went to a broker in dec who showed us some affordable deals for 10% deposits. We worked out we could afford £650 repayments a month on a tracker as a basis for rates to increase over the next 2 years.
However in Feb we found a property and made an offer which was accepted. So we went to the same broker who then showed us deals that started at £715 a month and we were surprised and worried then as we'd hoped to pay around the 650 mark.
He said it's because lenders change their deals all the time and things may change in a few weeks but that's the cheapest right now.
Stupidly we said go ahead with it because we felt that we had no choice and paid out a 995 application fee on an Abbey mortgage (they haven't taken it yet but we signed forms and the small print said non refundable)
In the mean time they are asking for proof of dep so things are being held up, and we've also seen that other lenders are doing lower rates.
We thought the broker saw what was available but now we realise he doesn't see some of the better deals from banks like Natwest. The same royal bank of scotland deal he showed us in dec wasn't on his list but is in fact still available (just not through him)
So we asked him to phone Abbey and check to see if we can cancel as no money has been taken, but they say no. They are going to take it if we cancel.
We've worked out that we save around 1K over the 2 years if we went with Natwest or RBS (2K saving really but lose a grand to Abbey for cancelling)
Feel annoyed and need to hear what you would do - lose a grand to go with the cheaper option?
Cheers,
nomnomnom
p.s we know rates will go up we don't think it's going to be 650 forever please don't think we are that stupid!
However in Feb we found a property and made an offer which was accepted. So we went to the same broker who then showed us deals that started at £715 a month and we were surprised and worried then as we'd hoped to pay around the 650 mark.
He said it's because lenders change their deals all the time and things may change in a few weeks but that's the cheapest right now.
Stupidly we said go ahead with it because we felt that we had no choice and paid out a 995 application fee on an Abbey mortgage (they haven't taken it yet but we signed forms and the small print said non refundable)
In the mean time they are asking for proof of dep so things are being held up, and we've also seen that other lenders are doing lower rates.
We thought the broker saw what was available but now we realise he doesn't see some of the better deals from banks like Natwest. The same royal bank of scotland deal he showed us in dec wasn't on his list but is in fact still available (just not through him)
So we asked him to phone Abbey and check to see if we can cancel as no money has been taken, but they say no. They are going to take it if we cancel.
We've worked out that we save around 1K over the 2 years if we went with Natwest or RBS (2K saving really but lose a grand to Abbey for cancelling)
Feel annoyed and need to hear what you would do - lose a grand to go with the cheaper option?
Cheers,
nomnomnom
p.s we know rates will go up we don't think it's going to be 650 forever please don't think we are that stupid!
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Comments
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I phoned the FSA and they confirmed that you have no cooling off period if you go through a broker. So we have to decide whether to lose the money now. In any case, hopefully this will help others to decide not to use a mortgage broker and go straight to the lender (Abbey give 90 days cooling off they say) where you are prb entitled to a cooling off period.0
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Normally you assess the options and YOU (not your broker) give the go-ahead. The broker did nothing wrong.
You can get as many accept in principals as you want but when you confirm with one, thats it. If you want to change, thats your problem. The fees paid cover the setting up the of the mortgage which have to be paid regardless - if you chose not to take it they still went ahead and set it all up for you!0 -
Without knowing how much you are borrowing it is hard to give advice, but make sure your broker is whole of market, if he is giving advice it may be that he is sourcing the best deal for you that may have lower set up costs than the other deals you have mentioned so he may be looking at total cost over the term? Also ask him about direct only deals.
I am a mortgage broker and I am giving an opinion not advice0 -
TrickyDicky wrote: »Normally you assess the options and YOU (not your broker) give the go-ahead. The broker did nothing wrong.
I didn't realise I gave the impression in my post that I was blaming him in any way. I am annoyed at myself for not doing my research beforehand.TrickyDicky wrote: »If you want to change, thats your problem.
Yeah, thanks.
What I was actually trying to say in my OP was that I wondered what other people would do if you were saving 2 grand over 2 years with another lender, but losing 1K to the old one in cancellation... am I being daft to stick with Abbey or switch to save that grand?
Or will going direct to a lender (not through a broker) be a lot more hassle? Is there any advantage of going through a broker?0 -
What are the fees for the other deals?
Your losing 1k to gain 1k!
Also check the paper work about the fee, it may not be taken?"Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00 -
The abbey deal usually offers you the chance to add to the mortgage upon completion. If you haven't made the payment yet, then there is nothing for them to keep.
They have several deals that offered a free basic survey and possibly a £250 cashback aswell. Obviously, if you didn't go ahead with the mortgage you won't get the cashback, but they shouldn't then take the £995 from you if you pull out now.
If you paid the money up front, I am confused as to why they haven't taken it. Phone Abbey up and say you do not wish to proceed and you do not want them to take the payment.
Did you pay for a survey and has it been carried out already?I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Well I'm losing 1k to save 2K but gaining only 1K if you see what I mean.
Hindsight is a wonderful thing ! I know how you feel, I'm on 1% above base for life of mortgage - wanted to port my mortgage and COULD'VE done IF I ported BEFORE I changed my name on the deeds first. Now I will need to remortgage and lose the 1% ABOVE BASE :mad:If you don't have 'owt important to say then don't say 'owt ...
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