Mis-sold a mortgage

sarah69696pink

Hi All,

I recently got a mortgage agreed from a major High St bank, anyway after much worrying that it was not right for me (won't bore you with all the details was very pushed into signing and taking the mortgage at the time and did not feel I was given any advice or listened to) I went to bank. They asked me to complain about the mortgage advisor, I did and I was given an independant person to review case.
Turns out I was wrongly advised (so new person says) and have now been correctly advised.
Original mortgage cost £599 in fees.
The new one is £99.

Someone is calling me back next week to discuss the possibility of paying for the new one. (was told if they agreed I was wongly advised they would cover any new costs).
As I was mis-sold in the first place I would ideally like the oringal one refunded and then I just pay for the new one.

Just wondered what every thinks about this. Is there any guidance on mis-sold mortgages?
Thanks!

GMS

Why do you think the mortgage was mis-sold?

sarah69696pink

Was advised tracker best for me not a fixed....worried about this lots as don't not like knowing exactly how much paying each month etc.
When independent went through my case he said as I was not ever on planning on over paying the fixed was better.
In fact as fixed has cheaper fees and is less than £20 per month more than tracker (at current rates) and is fixed for 2 years it is basic maths to go for fixed as even with fees it will cost less that the other mortgage.

dunstonh

did not feel I was given any advice or listened to

Its a bank. Most banks are non-advised sales route. If you wanted advice then you should use an adviser. Typically a whole of market or independent mortgage adviser.

They asked me to complain about the mortgage advisor, I did and I was given an independant person to review case.

That is not how it works. if you complain, the complaint is passed to their customer relations department and they look at what you say, ask the person involved their side of the story and then write to you with an outcome. They either uphold or reject your complaint and tell you that you can go to the ombudsman if you disagree.

What you describe is nothing like the complaints process. It just sounds like a different sales person offering you different terms and as the first one hasnt been advanced, there is nothing stopping then doing a refund.

Is there any guidance on mis-sold mortgages?

How were you mis-sold?
Did the terms of business issued state you were getting advice?

edit: posted before your reply appeared...

When independent went through my case he said as I was not ever on planning on over paying the fixed was better.

Who is this independent? If they are independent, then they wont work for the bank. So, what is their relationship with the bank, this complaint or anything else?

GMS

Did the 'adviser' assess your attitude to risk? If you made it clear you wanted to know payments then they have mis sold. Unfortunately banks tend to 'sell' rather than 'advise'.

If you have completed paperwork indicating otherwise then you could be in for a fight for a refund of fees.

I hope you manage to get your money back.

Good luck

ILW

If you were not sure, why did you sign the agreement?

sarah69696pink

dunstonh wrote: »

Its a bank. Most banks are non-advised sales route. If you wanted advice then you should use an adviser. Typically a whole of market or independent mortgage adviser.

That is not how it works. if you complain, the complaint is passed to their customer relations department and they look at what you say, ask the person involved their side of the story and then write to you with an outcome. They either uphold or reject your complaint and tell you that you can go to the ombudsman if you disagree.

What you describe is nothing like the complaints process. It just sounds like a different sales person offering you different terms and as the first one hasnt been advanced, there is nothing stopping then doing a refund.

How were you mis-sold?
Did the terms of business issued state you were getting advice?

edit: posted before your reply appeared...



Who is this independent? If they are independent, then they wont work for the bank. So, what is their relationship with the bank, this complaint or anything else?

Firstly I did not want advise on the whole of the market - just the products offered by this one particular bank. I ensured the appointment I had was with a financial advisor and not just a sales person.

Secondly this was the complaints process. I went into the branch for a new appointment (arranged by call centre when I said I felt unhappy with original advice) and when I told them why I wanted to meet with someone new they got the branch manager who said I should formally complain. I said I was unsure I simply wanted extra advise but they asked if they could type an email to said person's manager about my case, I sat there whilst they worded email and they wrote in email I was there and assisted with composition of email - I was told this email constituted a formal complaint.

Thirdly I was mis-sold as I was advised a tracker best for me in my circumstances. I could not understand this as I felt it was be a fixed, but was told it was a 'no brainer'. I took this advice. However the new person was clear this was wrong and a fixed is much more appropriate for my circumstances.

The independent is someone from another branch in another area, therefore has no knowledge of the other people who I have previously met with.

sarah69696pink

ILW wrote: »

If you were not sure, why did you sign the agreement?

Good point, and I know I should have been more assertive. I do take responsbility for this, but this is part of my inital complaint really, I asked if I could take the forms to think about it, but was told if I did take the forms away it would take weeks before someone could see me again and I was told I was not able to simply drop the signed forms back into the branch.
Also I suppose I trusted an advisor with more knowledge of mortgages to know more than me.

sarah69696pink

GMS wrote: »

Did the 'adviser' assess your attitude to risk? If you made it clear you wanted to know payments then they have mis sold. Unfortunately banks tend to 'sell' rather than 'advise'.

If you have completed paperwork indicating otherwise then you could be in for a fight for a refund of fees.

I hope you manage to get your money back.

Good luck

He did ask if whether I was comfortable taking risks at all and gave the example that higher risk savings often provide best interest rates. I said I was not at all and I would prefer a guaranteed low interest rate with no risk.

The new person asked lots more questions - for example about my views about potential increases in rates etc.

I hope I get my money back too!! I guess at least I get to have the best product for me at the end of this, the money back would be a great bonus though.

dunstonh

Secondly this was the complaints process. I went into the branch for a new appointment (arranged by call centre when I said I felt unhappy with original advice) and when I told them why I wanted to meet with someone new they got the branch manager who said I should formally complain.

That is not the complaints process. They have basically made an attempt to sort it out in-house without registering it as a complaint. Personally, I see nothing wrong with that in this case but it is not being handled under the regulated complaints process.

I was told this email constituted a formal complaint.

Have you received the letter in the post (typically within a few days after contacting them) outlining the complaints process and your right to go to the FOS if you disagree with their outcome or if they do not resolve it within 8 weeks?

Thirdly I was mis-sold as I was advised a tracker best for me in my circumstances. I could not understand this as I felt it was be a fixed, but was told it was a 'no brainer'. I took this advice. However the new person was clear this was wrong and a fixed is much more appropriate for my circumstances.

Product choice isnt necessarily a mis-sale. Only time will tell which option turns out best. Of course, security of fixed rate is sensible if you say you have concerns so you are right on the product front.

The independent is someone from another branch in another area, therefore has no knowledge of the other people who I have previously met with.

That doesnt make them independent. Its probably just another mortgage adviser protecting the first one from a formal complaint.

Also I suppose I trusted an advisor with more knowledge of mortgages to know more than me.

Dont. They are bank sales reps. Banks work in a sales environment. product choice shouldnt have any impact (which is why its a bit strange) but it does explain the pressure they can put on you at times. Plus, banks are the training ground nowadays. So, you do get a lot of inexperienced and low skilled "advisers". Also, banks tend to overuse the term "adviser". This can muddy the water at times. Especially when so many are not giving formal advice but information only.

sarah69696pink

dunstonh wrote: »

That is not the complaints process. They have basically made an attempt to sort it out in-house without registering it as a complaint. Personally, I see nothing wrong with that in this case but it is not being handled under the regulated complaints process.


Have you received the letter in the post (typically within a few days after contacting them) outlining the complaints process and your right to go to the FOS if you disagree with their outcome or if they do not resolve it within 8 weeks?




Product choice isnt necessarily a mis-sale. Only time will tell which option turns out best. Of course, security of fixed rate is sensible if you say you have concerns so you are right on the product front.



That doesnt make them independent. Its probably just another mortgage adviser protecting the first one from a formal complaint.



Dont. They are bank sales reps. Banks work in a sales environment. product choice shouldnt have any impact (which is why its a bit strange) but it does explain the pressure they can put on you at times. Plus, banks are the training ground nowadays. So, you do get a lot of inexperienced and low skilled "advisers". Also, banks tend to overuse the term "adviser". This can muddy the water at times. Especially when so many are not giving formal advice but information only.

Thank you for this advice...they are currently considering whether to refund the money....if they don't I will certainly speak to them about the 'complaint' I made. Clearly it was not as formal as I originally thought!!