FTB: Bank or IFA - Bank lied about incentives - Tied in!!!!

silence12

Hi,

I am a first time buyer with a 30k deposit. I have had an offer accepted on a property and have decided to use my bank as my lender.

However, when I went ahead with the MIP, they did not advised me that the arrangement fee was £1495. Also they stated that I could get 1/2 of my yearly council tax paid. After the reasearch, I advised them that they did not inform me about the fee of £1495, or did they advise me that the the council tax offer had expired!

There reply was.......im sorry. They said they could offer me 1 month home insurance for free!?

The mortgage is on a fixed at 5.49.

I feel that I have been had! Today the bank arranged for a surveyor to attend the property, of which I paid £540 for.

Even though I am at this stage, would it be too late to look for a mortgage elsewhere? Nationwide are offering excellent incentives.

I am getting a headache with this, and dont want to loose out before I have even started. Please help.

opinions4u

How much did your Key Facts document say the fee was?

It was given to you in black and white.

If you back out, you will lose the survey fee IF the survey has taken place (put a stop to the survey quickly if you want the money back). You may also be charged the product fee (depending on the lender - if it's Halifax you probably won't be).

It sounds to me like you've had an agreement in principal a few weeks ago and the offers have changed since then. This isn't unusual, but you would expect the verbal conversation to make it clear exactly what is available now. I wouldn't expect an adviser to make any reference to what deals were available a few weeks back.

betmunch

Thats the danger of non-advised bank sales. The banks records will clearly show that you chose the product rather than being advised to take it so you wont have a leg to stand on.

If the surveyor has not yet attended the property you may be able to stop him and get your money back, but you will have to check with the bank for this.

Even if he has gone its not to late to change, although it may not be worth it due to costs.

If I was you I would phone the bank on monday and tell them to cancell the valuation and refund the cost to you, then see a reputable mortgage broker to see if it is worth changing to another lender.

silence12

opinions4u wrote: »

How much did your Key Facts document say the fee was?

It was given to you in black and white.

If you back out, you will lose the survey fee IF the survey has taken place (put a stop to the survey quickly if you want the money back). You may also be charged the product fee (depending on the lender - if it's Halifax you probably won't be).

It sounds to me like you've had an agreement in principal a few weeks ago and the offers have changed since then. This isn't unusual, but you would expect the verbal conversation to make it clear exactly what is available now. I wouldn't expect an adviser to make any reference to what deals were available a few weeks back.

They key facts state that there will be a fee of £149.00 Not £1495.00.

silence12

betmunch wrote: »

Thats the danger of non-advised bank sales. The banks records will clearly show that you chose the product rather than being advised to take it so you wont have a leg to stand on.

If the surveyor has not yet attended the property you may be able to stop him and get your money back, but you will have to check with the bank for this.

Even if he has gone its not to late to change, although it may not be worth it due to costs.

If I was you I would phone the bank on monday and tell them to cancell the valuation and refund the cost to you, then see a reputable mortgage broker to see if it is worth changing to another lender.

Thanks for your advice. I have a printed receipt, so will call the bank first thing on Monday morning. The surveyor has not gone to the property as of yet. They mortgage adviser stated that they will call the EA's on Monday to arrange a time and date. ...not if I can get to them beforehand.

betmunch

Does the key facts state it was an advised or non-advised sale?

If the key facts you were given doesnt show a fee of £1495 then you have a case to have the £1495 reduced to £149.

If you do not want to go ahead due to this fee and it is not the fee you were advised of then you should be able to get out of it without too much trouble

betmunch

silence12 wrote: »

They mortgage adviser stated that they will call the EA's on Monday to arrange a time and date. ...not if I can get to them beforehand.

Call the EA first thing (they are more likely to pick up at 9am than a bank) and tell them not to give the keys to the valuer as you are changing mortgage company.

They will be particularly keen to help if you offer to see their in house adviser - although you shoudl check what reputation he/she has.

Then get on to the bank to cancel the survey and get your refund. Dont forget to point out the reason you are considering going elsewhere is that they moved the goalposts re: fees

silence12

betmunch wrote: »

Does the key facts state it was an advised or non-advised sale?

If the key facts you were given doesnt show a fee of £1495 then you have a case to have the £1495 reduced to £149.

If you do not want to go ahead due to this fee and it is not the fee you were advised of then you should be able to get out of it without too much trouble

Hi, I am not too sure what a non-advised sale is. The fact sheet does not state that. However it clearly stated that the fee is £149.00

betmunch

Its should say on the front of the key facts.

Either way, if the fee isnt in the key facts then the Halifax is in the wrong!

opinions4u

silence12 wrote: »

Hi, I am not too sure what a non-advised sale is. The fact sheet does not state that. However it clearly stated that the fee is £149.00

What type of fee does it say the £149 is?

It doesn't sound like a product fee to me.

Are you looking at the Key Facts document issued when you applied most recently, and are we talking about Halifax?

silence12

opinions4u wrote: »

What type of fee does it say the £149 is?

It doesn't sound like a product fee to me.

Are you looking at the Key Facts document issued when you applied most recently, and are we talking about Halifax?

Hi yes, I am looking at the facts sheet which was given to me by the bank. In actual fact, this was given to me when I applied for the mortgage in principle, but they did not stated anything about the Product Fee...., which is what I researched on the net, only to find out that it was £1495.

Maybe I got it wrong. But its written down here...hmmm, it says "fee for our services...£149.

Im getting out of this one.