Poor Advice

Rickoza

Wondering if someone can advise. About three years ago our financial advisor said we should go with a new fixed mortgage with the Halifax which was about 6.09% or something like that. That meant our mortgage was up to £454. I just got a letter from the Halifax (no word in the following years from the advisor) telling me the deal was coming to an end, and that from next month our mortgage drops to £369. I can't recall when interest rates began to drop, but I know that the difference over a year is nearly £1000! Anything I can do about this, or do I just have to put it down to never dealing with this person again?

saverbuyer

Rickoza wrote: »

Wondering if someone can advise. About three years ago our financial advisor said we should go with a new fixed mortgage with the Halifax which was about 6.09% or something like that. That meant our mortgage was up to £454. I just got a letter from the Halifax (no word in the following years from the advisor) telling me the deal was coming to an end, and that from next month our mortgage drops to £369. I can't recall when interest rates began to drop, but I know that the difference over a year is nearly £1000! Anything I can do about this, or do I just have to put it down to never dealing with this person again?

Unless your advisor was called Mervyn King there's little you can do.

Rickoza

I suspected as much! Cheers, not to worry..........-)

Thrugelmir

Rickoza wrote: »

Anything I can do about this, or do I just have to put it down to never dealing with this person again?

You made the final decision.

Leon_W

Some people are under the impression that a mortgage adviser/brokers job is to second guess the market and ensure that the client is on the best possible rate at all times. It isn't.

If I remember correctly, when you took out your mortgage the credit crunch was not in full swing and there was even talk of interest rates rising, so to have the certainty of a set monthly payment you took a fixed rate. I did this myself at the time. With 20/20 hindsight I would have been better off taking a tracker as soon after interest rates plummeted. BUT, at the time I couldn't afford rates to go up so fixed was the best way for me to go.

So, a mortgage brokers job is to tell you the difference between trackers, capped, fixed etc but the deal you go for is ultimately up to you. You may be guided by the adviser as, in my opinion, first time buyers are probably better having a fixed rate in order for them to budget effectively within the first few years, but if they disagree and want a tracker, who am I to argue ?

Hope this helps.

holly_hobby

Well said Leon .....

H x

GMS

I am considering suing my doctor. I went there with a headache which he diagnosed and cured for me. However 3 months later I had a problem with an ingrowing toenail. Surely he should have seen this coming?

As ridiculous as this sounds it is what you are expecting your broker to do. Had bank rates risen instead of fallen you would be more than happy. The fact is the broker can only deal with what is there at the time and what the customer wants.

dunstonh

Anything I can do about this, or do I just have to put it down to never dealing with this person again?

I'm sorry but I really take offence at this sort of complaining.

You buy a fixed rate mortgage to give you certainty of monthly repayment. Not to be on the cheapest deal. There will be periods when the variable rates fall below the fixed rate and will be periods when the variable rate goes above the fixed rate.

Would you be complaining if interest rates had gone to 10% and you were still paying your 6%?

Advisers do not have a crystal ball and will make recommendations based on the information you tell them. A fixed rate would have been recommended probably as you gave concerns about fluctuating mortgage payments.

yet here you are calling the advice bad and trying to get compensation. The mortgage adviser is probably a lucky person that they wont have to deal with you again.

opinions4u

We were entering very uncertain financial times 3 years ago.

One way of managing that uncertainty was to fix your mortgage rate.

alexlyne

FWIW, we got a mortgage in 2009. 6.4% it is and still has 3 years left... ho hum. If you find someone I can blame for this shocking rate (other than myself), then let me know!

Oxid8uk

Any mortgage, be it fixed or tracker, involves an element of risk. With a fixed you risk paying more when interest rates drop, with a tracker you risk your monthly payments going up if interest rates rise. People can 'advise' you but ultimately you are the one that makes the decision as to what mortgage product is best for you. You cannot blame anyone.