Morgage broker nightmare!!!

trophs

I'm just in the process of upsizing house. Have agreed to swap with someone who is downsizing. To cut a long story a bit shorter, I filled in a few things online while comparing mortgages. A mortgage broker phones and offers the Woolwich 2.89% Offset Tracker, looked good to me and I could offset my savings. He said over the phone I wouldn't have to pay the Valuation, so got him to send an e'mail saying so. Six weeks later I ask him how the process in going and he forwards an e'mail from the Alliance and leicester saying my mortgage has been approved??? Alliance and Leciester Lifetime Tracker 3.06%, no facility to offset which was the box I checked on his website. I asked if he had mixed my up with someone else, and he says `Didn't you get the revised mortgage offer we sent out, the Woolwich deal was no longer available by the time we got your paperwork`
Is it even legal for him to do this? At no point did he mention the Woolwich deal falling through, or mention Alliance and Leicester. I bank with the alliance and leicester so had obviosly checked out their products.
I got him to send the info on the mortgage illustration anyway which had me borrowing correct amount £235000, and got straight on the phone to first direct for their offset £234000 id 65% LTV, they do a 1.99% above baserate tracker. My thinking was I could fall back on the A&L one if the First Direct was rejected, even though I would be about £3000 out of pocket over 3 years.
All looked rosyish again till my other half phoned tonight and said that the offer from Alliance and Leicester had come through offering £190000, Eh!!!! So now I have a useless mortgage and a great dirty footprint on my credit rating. I had already agreed to swap houses on the 1st of October, so it's going to be a bit embarassing telling them I probably won't be ready. First direct told me it taked 4 to 5 weeks, but up read up to 12 elsewhere.
HELP!!!! What should I do??

betmunch

Before applying for a mortgage you should have recieved a Key Facts Illustration about the mortgage. From your post it looks like this didnt happen so the Broker should not have applied for the A&L mortgage. You specifically asked for an offset as well and this was not available on the A&L mmortgage.

In my opinion you should have been consulted on any change of lender, and the lack of offset should have been discussed.

If you continue with this application and it goes wrong after this point then I dont see how you can have any comeback though as you are being made aware of the issues and chosing to proceed.

What have you actually paid out in real cash money terms?

Another thing to take into account is that Woolwich and A&L are quite generous lenders but First Direct is not so much, make sure that your income covers what you are asking for

sebtomato

trophs wrote: »

First direct told me it taked 4 to 5 weeks, but up read up to 12 elsewhere.
HELP!!!! What should I do??

Mortgage application with First Direct is currently 5-6 weeks, assuming you send all the papers on time, and there are no issues.

See the First Direct thread for some recent experiences:
https://forums.moneysavingexpert.com/discussion/2567711

trophs

Thanks guys, I did recieve an illustration at the start, but that was for the Woolwich mortgage that I wanted. So throughout the whole process I was expecting to get this mortgage. The broker didn't indicate any different. I filled ot the Woolwich application and copied the signed sheets and sheets with any relevant figures on them.
Once he e'mailed to say my mortgage had been approved I told him to send me the info on that mortgage. He sent an illustration with £235000 mortgage. The final approved offer A&L have sent through the post is only for £190000.
I'll check out that First direct post. 4-5 weeks might be ok for me, but I'm worried my credit rating is too bad now. I've had 3 checks recently including this A&L one I didn't ask for.