Loan/Mortgage Mistake.

snowcat75

Hi iv read this forum for some years however this is my first post so go easy:cool:

Iv a question that dates back to 2007 involving Natwest,

Heres the story in 2007 I was renovating my house, I already had a small mortgage (50K) and plenty of equity (250K) in the house, So I wished to borrow against the property to so the works, I needed around 35K bringing my total Mortgage to around 85K, At the time and still I had my Mortgage with Halifax, It was Fixed (and still is) at a terrible 6.0%. Natwest who I bank with were pushing for trade and offering good deals so I booked an appointment..

I met on the Saturday and the Lady I spoke with said although she wasn't qualified to set up a Mortgage she could go through my options and advise.

So this is where I was duped, She "advised" that I met with there Mortgage expert on Wednesday but she said the best course of action was to take out an unsecured loan at around 7.3% until my new Mortgage was up and running in a month or so times, She could see no problem on landing me the 35K today (although I had stressed I didn't need it straight away) and then once the Mortgage was up and running then the whole lot would be rolled into it. Like a fool I agreed thinking there would be no issues.

So comes Wednesday, I met with the Mortgage guy who I spent around 3 hours with, I agreed on an offset Mortgage with no fees, at about 4.0% fixed for 2 years and then about 2% over base, We filled out both the longhand form and the computer version and did the credit checks, I even remember him joking saying I don't think we even need to if we've put 35K through for you unsecured. It didn't cause a problem and the Mortgage was agreed and settled all except taking the documents away for My wife to check and sign.

I dropped the documents back in branch 2 days latter and was given a receipt for them, I had already been given a date for the payments to be taken and was told everything would be transfered within 4 weeks.

So this is where it all went wrong, I waited 4 weeks no documents and nothing from the Halifax to say my current Mortgage was to end, So I went in Branch who told me it was on the system and was still being set up, OK so I waited another couple of weeks, No contact, tried in branch same story, tried phone the Mortgage man direct no answer, this went on for some weeks, I tried there call centres but no one could tell me what had happened and why the Mortgage had not been set up.

By this time life had got in the way, House was a building site, first child was on the way and Mother had severe dementia, (no excuse I know) but I sort of let it ride. About a year latter I was invited in for one of there cozy sale pitches, I accepted as I wanted to find out why/what or how had happened to my mortgage and why I was paying twice the interest not to mention some big repayments on an unsecured loan, The Girl simply answered "strange" and shrugged her shoulders, pretty much the same response I got from the Call centres when I also phoned them.

So to my point, Its clear that Natwest cocked something went wrong, I have been paying a big chunk of money because of someones error. I have BTW all the paperwork from the Mortgage including the signed agreement, which I'm positive is more than Natwest, So have I got a case to take Natwest to task on this, If so whats the best course of action, or is it a case of put up and shut up and let it ride.

Sorry for the rambling first post.

kingstreet

Write a letter of complaint setting out what went wrong, enclose any evidence you have to support your assertion and tell them what you want them to do to put it right.

They have eight weeks to investigate and provide a formal answer. If you are unhappy with their final response, you have the right to escalate the issue to the Financial Ombudsman Service (FOS).

Thrugelmir

You never received a mortgage offer. So there's no agreement in place.

5 years is a long time to wait to complain............

snowcat75

Thrugelmir wrote: »

You never received a mortgage offer. So there's no agreement in place.

5 years is a long time to wait to complain............

Actually if you read Id did complain several times just got know are, why shouldn't I complain now???

If I never received an offer then the loan should never have been sold I didn't want it, but actually the Mortgage was agreed subject to survey or so I understood, the loaning of the money was never a problem.

Thrugelmir

snowcat75 wrote: »

If I never received an offer then the loan should never have been sold I didn't want it, but actually the Mortgage was agreed subject to survey or so I understood, the loaning of the money was never a problem.

So what's the purpose behind your complaint now?

Have you got it writing that the mortgage was approved subject to survey?

After 5 years there'll be a lack of documentary evidence. So little to base a case on.

snowcat75

Thrugelmir wrote: »

So what's the purpose behind your complaint now?

Have you got it writing that the mortgage was approved subject to survey?

After 5 years there'll be a lack of documentary evidence. So little to base a case on.

I have the hand written Mortgage form, and the computerized Key facts printout, stating that I should be contacted within a couple of days of the form being handed back to arrange a survey, I have the receipt for this, the DD mandate, and the loan arrangement for 35K (dated four days prior). I would have thought as evidence goes that wasn't bad.

Which is why I'm complaining now, because I recently stumbled across the paperwork, when looking for something else, as I was living in a caravan whilst my house was a building site I thought the proof I needed had been binned.

My mortgage illustration shows a start on the 27/03/2007 at £634p/m for the £85K My P/L has made me find £480p/m + my Mortgage of about £600 My monthly outgoings therefore have been about doubled by Natwests Mistake.

_Andy_

Straws...clutching..

Leon_W

" I have been paying a big chunk of money because of someones error "

Yes, that will be yours. It was you that let it "ride" for 5 years. I'm not saying that Nat West could not have been a bit more forthcoming but it is ultimately your responsibility to ensure any financial transaction has been set up to your satisfaction in a reasonable timeframe.

snowcat75

Thanks, maybe IL use that "reasonable time frame" quote if HMRC want to do a VAT/S/A inspection.