Can I claim any money back?

dunstonh

I was aware that a lot of this was a strange way of doing things but I really didn't understand it and had trouble getting to grips with it all, so I pretty much left it all to him and believed that I had paid a reputable mortgage broker who knew what they were doing and who kept telling me that everything was fine and it was all above board.

You paid a mortgage adviser to get you a mortgage. The mortgage adviser is not a financial adviser or a legal adviser or commercial enterprise adviser (buy to let is a commercial activity).

Owning property and borrowing on property is not risk free. That is why you see so many risk warnings.

Yes I could afford the original quotes he sent me before the huge spike, not comfortably but I was prepared to struggle a bit to get out of that apartment.

Well there you go. No wrong doing. You made a choice. Its now a choice that you appear to regret.

Whenever you make a risk based judgment call you have to be prepared to accept the risks. The risks are called risks because they may happen. You cant complain after the event if a risk you thought was acceptable and may not happen actually happens.

I came here hoping for some helpful advice on a matter I am genuinely worried and losing sleep over, instead I get people having a go at me. Nice.

You are getting advice on which is basically saying that you don't appear to have any grounds for blaming others.

What you need to be doing now is looking at your budget and solutions to your predicament rather than try and blame others. That is where you should be getting advice.

GMS

Ian_iD wrote: »

Ok, I have major depression which in some people creates side effects that involve memory, concentration, learning & understanding and retaining information which is basically what I have and inccidentaly he knew that.

I was aware that a lot of this was a strange way of doing things but I really didn't understand it and had trouble getting to grips with it all, so I pretty much left it all to him and believed that I had paid a reputable mortgage broker who knew what they were doing and who kept telling me that everything was fine and it was all above board.

Yes I could afford the original quotes he sent me before the huge spike, not comfortably but I was prepared to struggle a bit to get out of that apartment.

I would hardly compare holding a bank up with a shot gun to signing mortgages I didn't properly understand, that is just stupid.

I came here hoping for some helpful advice on a matter I am genuinely worried and losing sleep over, instead I get people having a go at me. Nice.

The point is that you must have understood that living in a property which was for rental and renting out a property that was residential was wrong.

You still signed the paperwork agreeing to the terms and conditions which you fully intended to breach.

If you were badly advised then this is an issue to be addressed but be very careful as to how you go about it. YOU agreed to it all so you are complicit.

Your solicitor should have gone throught the mortgage with you so you cannot say you were unaware, nor can you say teh adviser told me it would be ok later on.

Sorry for being harsh and I have every sympathy for you for the way you were misled but you need to deal with it as best you can now. Take some advice from your adviser friends.

Ian_iD

kingstreet wrote: »

I've messed about with the figures you've given to see why the monthly payment difference was so high between 75% and 80% mortgages. I can only conclude the lender chosen for your 75% mortgage was ridiculously uncompetitive for the later valuation/LTV.

Looking at what you've said, you've no hope on the mortgage on the new property as it's been done as a BTL. Why weren't the two cases set up correctly with the existing property remortgage as a BTL and the new property mortgage as residential? It seems odd to do it the opposite way round, unless you were trying to get a bigger mortgage than your income justified?

The only issue you might have is the nature of the advice on the residential remortgage from the point of the valuation figure being known. What discussions went on between you and your adviser? Were you simply told you would get a new product and the payments would be higher?

In the circumstances you describe, I would personally re-source the case to ensure the new deal on offer was appropriate and still offered the best value for the revised circumstances. I'd produce a new sourcing report, a new KFI, new suitability letter and a factfind addendum which reflected what had happened and what I'd done to remedy the situation.

Did you get revised documentation confirming the adviser recommended the new product in the new circumstances?

Magpiecottage - if you read this, what do you think?

Thanks Kingstreet,

I presume that why they were the way round they were so I could lend more. As far as the disucussions go he said he said he had gone through everything and this was the only was it would work. I would would remortgage with a new lender, get the valuation and then the payments would be this, which with rental income seemed fair. As I say maybe I stuck my head in the sand a bit as I was desperate to move and he had what seemed like a way out. I was also legally tied in to buy the house so was just relieved that i wasn't going to lose my deposit and run a possibility owe more money.

So are you suggesting I get another financial advisor to look at my case and see if they came up with anything better? Excuse my ignorance but I don't know what a KFI and factfind addendum is?

The only documentation is the email that he sent explaining what I could do.

Thanks again

kingstreet

Clear your mind of all the other stuff.

Concentrate on the point you were told the property had been down-valued. At this point, best practice would be to;-

- check lenders to see which is the best deal for the new situation
- provide a key facts illustration for the new deal
- re-write suitability letter to explain old deal no longer available and key points of why new one now suits you best
- write a factfind addendum to record the new valuation and how that impacts your situation and your needs.

Did the adviser do this? Do you have multiple records to reflect the initial advice you were given, then later dated documentation to deal with the necessary change?

If the adviser has simply accepted another deal from the same lender without establishing the suitability of that deal for you in comparison with others, you may have an issue to complain about.

Ian_iD

kingstreet wrote: »

Clear your mind of all the other stuff.

Concentrate on the point you were told the property had been down-valued. At this point, best practice would be to;-

- check lenders to see which is the best deal for the new situation
- provide a key facts illustration for the new deal
- re-write suitability letter to explain old deal no longer available and key points of why new one now suits you best
- write a factfind addendum to record the new valuation and how that impacts your situation and your needs.

Did the adviser do this? Do you have multiple records to reflect the initial advice you were given, then later dated documentation to deal with the necessary change?

If the adviser has simply accepted another deal from the same lender without establishing the suitability of that deal for you in comparison with others, you may have an issue to complain about.

Well actually the day I learnt about the downvalue was the day he went on holiday (without telling me) and was suddenly landed with someone I had never dealt with before. This new guy, Chris, tried to find another solution for me but in the end said that was the best one, unless Joel could find something better when he came back (as I had been dealing with Joel for weeks and he knew my situation much better. Chris also wasn't sure Joel had picked the products he had). I had to wait a week for him to return, he then went straight off again on maternity leave but did ring me and say that was the only solution. I have never had an documentation at all from him, apart from a few emails.