Key Facts

john1002

Can someone please help put our minds at rest, we recently recieved our mortgage offer but it excluded the fees we are due to pay, but in the key facts this was included, so if there was a chnage should our FA not have included a new key facts, as it is if it is not reolved we look set not to be able to proceed as well be 7600 less for flooring etc. The FA says it is an oversight and we shouldnt worry.

Any guidance appreciated

john

Mr_helpful

you have £7600 in fees???

SantanderAbbey

john1002 wrote: »

Can someone please help put our minds at rest, we recently recieved our mortgage offer but it excluded the fees we are due to pay, but in the key facts this was included, so if there was a chnage should our FA not have included a new key facts, as it is if it is not reolved we look set not to be able to proceed as well be 7600 less for flooring etc. The FA says it is an oversight and we shouldnt worry.

Any guidance appreciated

john

Any Key facts should mirror the offer, the lender could use an amended offer if the IFA has submitted it but you should still have a key facts to match the amended offer.

john1002

So we can rest,we have had no revised key facts. Must be an error.

If things went wrong, could we claim our expenses ie solicitors etc from the IFA for poor advice/guidance if we had to pull out due to the non adding of fees?

With regard fees, the mortgage is with SPML for 230,000 we have xxx for idemnity and arrangement fee and I think as well broker is getting fees from spml and we have to pay packager 1995 on completition.

Were on there almost prime 2yr fixed deal.

John

MortgageMamma

Sounds like you've been ripped off fee's wise. did you not look for a broker who doesnt charge fee'? do you have adverse credit? Is the property non standard construction? is this self cert?

Milky_Mocha

John, was the rate v. good to compensate for the high fees maybe? I'm just curious.

john1002

Yes the rate is good for what we saw for our circumstances,the best one that was found out of the whole list he presented was SPML 5.94 we only have satisfied defaults but I have had a repossession but over 6 years ago.

This fee is to the packager we've been advised. The problem is we are so close to exchange now we cant afford to switch. Also our exsisting company derbyshire would not give us the income ratio, they only did 3. We needed somebody to look at affordability.

John

Rick62

john1002 wrote: »

So we can rest,we have had no revised key facts. Must be an error.

If things went wrong, could we claim our expenses ie solicitors etc from the IFA for poor advice/guidance if we had to pull out due to the non adding of fees?

With regard fees, the mortgage is with SPML for 230,000 we have xxx for idemnity and arrangement fee and I think as well broker is getting fees from spml and we have to pay packager 1995 on completition.

Were on there almost prime 2yr fixed deal.

John

I'm not sure what is going on here. You have 2 documents with different fees. You suggest £7.600 of fees. You mention 'indemnity' - what is this? You have arrangement fees AND a 'packager' fee. It sounds like you are being completely ripped off. The packager gets very well paid directly by the lender. If you are near prime you have lots of options.

From what you have said it sounds like you are going to get charged the higher fees. I think the Key Facts included all the extra fees the broker has added, while the offer only includes the lenders fees. There is no need for him to be charging you anything, he will be getting about £2,000 from the lender.

Spend today posting the full details, what fees and what amount (xxx is not very helpfull) get some advise from this site, you might well save yourself several thousand pounds. Who is the broker?

john1002

Rik,

We have a key facts document that said the fees would be added to the mortgage, yet when we got the offer letter it said the fees would not be added, hence why I first posted just to see if that was right.

Right the fiqs are as follows:

purchase price 249950
mortgage 230,000 plus the following

Arrangement fee 3450.00
Chaps 40.00
arrangement for not taking there bldgs ins 50.00
Higher lending charge as 92% 3804.09

Broker fee(he says goes to packager) 1995.00
Valuation fee 99.00 although we have paid 250 for the valuation direct to broker so hopefully this will show on final statement.

he then later says in offer letter broker to recieve 1150 in cash/or benefits.

Only problem we need to complete 16.04.07 so even if we have been screwed,which I hope with all the following we haven't then theres not much we can do.

Hope that helps, also the rate is 5.94 for 2yrs.

John

The IFA has over 20 years experience, hence why we went with him.

Rick62

Arrangement fee £3450, based on 1.5% of mortgage and can be added to loan (so long as within 95%).

Higher Lending Charge £3,804, based on amount over 75% of house value at a rate of 8.95%. Cannot be added to loan according to my product criterior (i.e. you will need to pay this in cash).

Valuation, £250, I would expect this to be £330, I don't know where the £99 comes from.

Broker Fee £1995. This sounds like what it says, a fee the broker is charging to you, in addition to the £1150 he gets from the lender. It does not go to the packager.

The rest sounds fine, but I think the £1995 is a rip off, and obviously so does your broker as he is lying about who gets it. Was this detailed in their initial terms (Key Facts About Our Service)? I would challenge him on this. Tell him if he doesn't waive it (or at least reduce it substantially) you will look elsewhere. A lot of brokers would be more than happy with the £1150 from the lender.