Why is brokers key facts illustration so different to offer?

tupre323

I am a first time buyer and using a whole of market broker. The broker sent me a key facts illustration a couple of weeks ago and today I received the offer from the Halifax. There are a number of differences which surprised me as I thought they would be identical. As I'm new to this I wondered if anyone could comment on them:

- It is a different interest rate and product code
- The term has changed from 30(KF) to 25(offer) years
- The valuation fee has increased by £40 (which I've already paid without realising)
- The offer mentions an arrangement fee payable to my broker on application but the broker's KF make no mention of this. Both the offer and the broker's KF do mention the amount that the Halifax will pay the broker if I take the mortgage but this other arrangement fee appears to be something else.

Are big changes like this normal or have they just messed up my application?

MortgageMamma

Sounds like they have messed up your application. If the interest rate and product code are different then either the wrong product has been applied for or the original product was not reserved and this is an alternative product - either way your broker should have explained this to you.

On the original key facts illustration which reflected the product you actually wanted, on the back couple of pages there should be something that starts "for advising and arranging this mortgage halifax plc will pay (broker name) a sum of £xxxx upon completion.

If the original "key facts about our services" document your broker handed to you said they were not going to charge you a fee for their services, there should be no fee added into your mortgage on the mortgage offer. ALso normally when a broker is going to charge you a fee they would ask you to sign something called a fee agreement which I am sure you will remember if you signed one.

There might be a geniune reason for all of this but based on what you told me this does not sound compliant and I think it stinks (mainly of shoddy service)

Take it up with your broker tommorow and get the broker to put all of this right.

D2007

The product might have expired as a Key Facts Illustration isn't a firm offer but like a quote. So if you've taken a while to sort your mortgage out you may have ended up with a new product. HOWEVER this shouldn't have happened without you being told (and should have most likely involved you goingback for a second meeting with the broker to discuss your options). It is common for a new KFI to be produced in these circumstances, however your broker should still have found one with the same Term and one without you having to pay his fee's. The interest rates can change depending upon what the banks are doing so that can go up or down.

If I was you, I'd go and speak to the broker about your queries and let him/her know you won't be proceeding unless you are happy about the changes. Don't let them just fob you off with some banking jargon as you need to make sure you have the best product available to match your needs. A mortgage is a big commitment after all!

Always best to go with someone else if you are buying alone as it gives you moral support and also means the broker can't just try and bombard you with too much information that you do what they want. Always good to take someone who's not a first timebuyer as they've been through it beforeso have a better idea of what to ask.

Leon_W

If ANYTHING changes between quote and the actual application, a new KFI HAS to be provided to the client illustrating exactly what mortgage they are applying for.

The accuracy of the contents of the KFI are the responsibility of the BROKER not the lender.