grounds for complaint/compensation? misadvised on mortgage

Simon_gloster

If it was me i'd be slightly peeved if i'm honest. Inexperince is probable.....but they are human and everyone makes mistakes.....even mortgage pros balls up massively sometimes.

Complaint, possibly but at the end of the day they aint getting a mortgage with them so use their time wisely in sourcing another lender should they fit any criteria.

suered

Thrugelmir/holly hobby

Grounds - because they are self-employed and therefore would need much higher deposit for starters. It seems everything the 1st advisor told them has been refuted - the ltv rate, the interest rate, bank would do this/that/other.

holly hobby - I know they haven't lost out bigtime financially, but given their precarious position in their current rental, they are seriously stressed out about having somewhere to live.

Obviously I'm biased - they're my mates - but to me it just seems absolutely wrong that one mortgage adviser basically says, yes - go for it, not a problem and then the 2nd one just laughs and says what on earth made you think we'd lend to YOU??? Don't even bother completing the formal application form because there's no chance.

Thrugelmir

suered wrote: »

then the 2nd one just laughs and says what on earth made you think we'd lend to YOU??? Don't even bother completing the formal application form because there's no chance.

I would be surprised if that's how it was phrased.

GMS

The Natwest letter literally isn't worth the paper it is written on.

'Based on the information YOU'VE given us I'm pleased to tell you that we MAY be able to lend you UP to £150,000'

Biggest load of nonsense ever written. It goes on to say subject to credit checks, full application etc.

Absolutely no grounds for complaint. Unfair yes. Misleading possibly.

Typical bank 'adviser'. More concerned with scoring points for bonus than assisting customers.

suered

Thrugelmir wrote: »

I would be surprised if that's how it was phrased.

I paraphrased, but that was the gist of it. They gave exactly the same info to Advisers 1 and 2.

Simon_gloster

Self employed do not incur higher ratea or have to put bigger deposits anymore.

Their affordability and credit score is assesses just like any PAYE person. Taxable income declared and a minimum trading period is key.

Dave_Ham

As above, human error probably based upon inexperience.

Complain to receive a £25 or £50 apology, but no more.

The letter reads as it is no more than what you can print on the internet based upon income, I could probably pull one from the website...

As said above, being self employed does not stop them getting a mortgage - declaring lower income to save tax may make their position harder mind you...

Handing in their notice was unfortunately stupidity, but sure they know that already.

Good luck

holly_hobby

suered wrote: »

Thrugelmir/holly hobby

Grounds - because they are self-employed and therefore would need much higher deposit for starters. It seems everything the 1st advisor told them has been refuted - the ltv rate, the interest rate, bank would do this/that/other.

That doesn't tell me why the 2nd adviser said they had no chance of a mge. What did the 1st adviser tell then, that was wrong regarding the banks lending criteria and your pals situation ?

suered wrote: »

holly hobby - I know they haven't lost out bigtime financially, but given their precarious position in their current rental, they are seriously stressed out about having somewhere to live.

Their rental position, is not the responsibility of the bank or a basis of compensation I'm afraid.

suered wrote: »

Obviously I'm biased - they're my mates - but to me it just seems absolutely wrong that one mortgage adviser basically says, yes - go for it, not a problem and then the 2nd one just laughs and says what on earth made you think we'd lend to YOU??? Don't even bother completing the formal application form because there's no chance.

I can understand completely you're empathy for your friends, indeed I also feel for them - but this isn't the first time I've heard of this, and in all honestly, unless they had paid out monies for conveyencing, or other associated purchasing costs - they are on a hiding to nothing with this.

£50 from the bank as D&I may be the absolute best they could hope for (with a robust enough complaint) ... and I mean hope .... TBH it wouldn't be worth the hassel and time taken IMHO.

Best for them to spend their time more productively with a broker, whom will know pretty much off cuff if their app is a goer given their SE status, deposit, credit history etc.

Sorry if not what you want to hear ... but hope helpful anyways.

H x

suered

Simon_gloster wrote: »

Self employed do not incur higher ratea or have to put bigger deposits anymore.

Their affordability and credit score is assesses just like any PAYE person. Taxable income declared and a minimum trading period is key.

Simon, sorry, my bad - have just checked. It was that adviser 1 told them that it was their GROSS income that mattered, not net.

They had no idea about mortgages and so (naively) assumed that they were being told the truth.

Thrugelmir

suered wrote: »

It was that adviser 1 told them that it was their GROSS income that mattered, not net.

Then possibly a misunderstanding. They gave the incorrect figures at the first meeting?