Are written mortgage quotes binding?

jpdc996

Our current fixed rate mortgage is coming to an end. We recently discussed options with our Bank and was given a writen quote for a 4 year fixed rate mortage, which we signed.

I have today received a telecon from the advisor to say that he has made a big mistake and that the rate isn't available to us, as it is only for customers moving to a limetime tracker.

I am obviously disappointed and bemused that system allowed the quote to be processed a s details of our current mortgage were included.

As we signed a written quote, isn't that legally binding?

Can I challenge this situation and what would be the consequences?

dunstonh

As we signed a written quote, isn't that legally binding?

No. The contract can be, once accepted but not the quote.

It is actually quite a common error. I guess with lenders having so many deals nowadays and the identifying information to churn out the deal KFI is fairly easy to get wrong if you are not careful. Some are even pull down menu options where a slight mouse move can change the deal.

Can I challenge this situation and what would be the consequences?

I would expect the FOS to accept this as a genuine human error and reject the complaint. It used to be a case that people accepted that errors could occur. Now some are just interested in getting compo.

property.advert

I don't agree. Pre contractual negotiations can legally form part of the contract. This is not a different lender. They know all about your circumstances and now wish to treat you worse than someone else. They have signed to offer this product and I would either request they honour that or offer compensation for it.

If you make a mistake and go overdrawn, they bloody well charge you for it.

jpdc996

We have now received 2!! identical copies of a new mortgage rate offer in lin with the quote we signed!!:doh:

benjaminM

I think dunstonhn is right on this one.

Annoying as it maybe lenders withdraw quotes and agreements in principles quite regulary. It is definatley a bone of contention. In normal circumstances the quote is withdrawn because all the funds have been taken. It seems in your situation it was just human error and there is unfortunatley not much you can do about it. Either way very annoying and I sympathise with you.