Think I've been mis sold a mortgage

holly_hobby

Maybe this will help explain how the Accord offset mge works .... (which to be fair is generally how they all work (apart from 1 or 2 who operate a variation of the std format) ... e.g interest is charged on the difference between the os mge and linked savings. so in the case of a 200k mge with 50k linked savings, mge interest is charged on the 150k difference and equivilent borrowings)

http://www.accordmortgages.com/documents/accordOffset_how_it_works.pdf

what Point of Sale (POS) docs were you given regarding the mge and advice provided ?

If you were not made aware, or offsetting was not correctly explained to you (poss due to the fact the advisor themselves didn't understand it), and you have been financially disadvantaged by the advice, then complain in the first instance to the Firm, escalating to FOS if you aren't happy with the Firms defence and explanation.

Recompense, well its to put you back in the position you would have been if the proven poor mge advice hadn't occured ..... this would be to fund all costs associated with you securing an alternative mge which IS completely suitable, however you are of course subject to lenders criteria (inc your old lenders current requirements, if you attempted to return to them, which would of course be on a product from their CURRENT portfolio).

Hope this helps

Holly

kingstreet

It sounds like an interest-only offset was what the OP actually wanted and he's got a capital & interest offset.

The end result is the "floor" applied to his payments. Even if he equalised the debit balance of the mortgage account and the credit balance of the savings account, he'd still be paying the capital amount needed to repay the debit balance by the end of the term.

Does that sound about right?

r1cbm

The problem is that as I'm not an expert in mortgages, I trusted them to help explain to me the type of mortgage we were going to get. What I think has happened is that he has quoted on an interest only not repayment and therefore screwed up.

He is also ignoring me currently by not responding to any emails...

holly_hobby

r1cbm wrote: »

So, I re-mortgaged 3 months ago, we used London and Country to advice of thebest option for us.

I wanted to have the ability to access some savings with a view to payingoff the mortgage as soon as I could. Iwanted to lower the monthly amount, and pay what I would have paid into savingsto offset against it.

This is what I wanted to do, get a repayment mortgage for (example figureshere) 150k, and let's say I had 50k in savings. Rather than pay it offdirectly, I wanted access to it in case something went wrong... (jobs etc)

Although you say you are not an expert and wholly trusted the adviser to explain they type of mge required, you also confirm that you entered the appointment specifically seeking an offset arrangement on a C&I basis. And from what I can see, thats what you've been given.

As will be supported by the POS docs I would imagine.

r1cbm wrote: »

I understand fully now the mortgage I have got. It's not what I expected,and (I have it writing from L&C) not what I was sold / told.

But the above states that a repayment offset was what you wanted - nevertheless your argument appears to be that the illustrations he used were on an interst only basis, when you wished and indeed did effect your mge on a C&I basis.

So essentially the chosen repayment method is correct and as per your wishes, its his explanation and indication of your monthly repayments where it goes pear shaped ?

Notwithstanding the repayment method is correct, you feel that the benefits of the offset mge selected, don't outway the associated costs and loss of (net) interest of the capital being held in an alternative deposit account.

So I am guessing (if possible) that your complaint revolves around the fact that you wish to revert back to a standard C&I mge (with seperately held savings), is that correct ?

If so, and if L&G have already admitted in writing (as you say) that their adviser inaccurately evaluated the benefits, gave inaccurate illustrations and therefore inappropriate advice re the Accord offset, AND you have told them you are unhappy with the advice and recommended mge, what have they offered to do to resolve the complaint ?

Holly

Thrugelmir

r1cbm wrote: »

I've also explained to L&C that the interest offset, is lower then the interest I could get in savings. (

What mortgage interest rate are you paying?

r1cbm

They have not yet responses to my emails. YEs, I have been given what I wanted, but the advisor calculated the rates based on interest only not repayment and thats where my expectations are out.

We are on Accord – 2.69% above BOEBR

r1cbm

I have mailed them again today asking them to confirm that they have calculated incorrectly and that we actually have what we were wanting.

I will do some calculations later to confirm that this is no use to use. I originally asked them to compare 2 situations.

1. Mortgage stays the same, renew at the same repayment rate and move to offset. Then take the savings and offset.
2. I was going to use a %age of my savings to drop the overall mortgage, keep some as an emergency pot and go for a 2 year tracker with a view to paying off 10% a year.

Thrugelmir

r1cbm wrote: »

We are on Accord – 2.69% above BOEBR

You'd be struggling to better this by much if at all in the current savings market.

So you may have the right product at the moment........