Shocking: changing the mortgage rate after the survey paid for!!!

terrencetrentderby

Can they get away with this? I have a Decision with the earlier advertised lower rate on it. Survey sorted now but the rate has now gone up! Seems appalling?

dunstonh

It depends on the reason for the increase. However, it is normal and fair in a number of cases:

1 - valuation fails to come in high enough and you dont meet the criteria for that deal any more
2 - fixed rate withdrawn before offer letter issued and replaced with another.
3 - money not advanced within required timescale and deal no longer available.
4 - capped rate, discount rate, variable rate, tracker rate is chosen product and rate increase occurs (discount/cap etc is based on a variable rate and not fixed and will go up as well as down at times)

Seems appalling?

Seeing as you havent said what caused the rate to increase, we cannot make any judgement on whether it is appalling or not. I suspect it is not appalling but more you not understanding why at this point. Tell us why it increased and then we can agree or disagree with you

terrencetrentderby

dunstonh wrote: »

It depends on the reason for the increase. However, it is normal and fair in a number of cases:

1 - valuation fails to come in high enough and you dont meet the criteria for that deal any more
2 - fixed rate withdrawn before offer letter issued and replaced with another.
3 - money not advanced within required timescale and deal no longer available.
4 - capped rate, discount rate, variable rate, tracker rate is chosen product and rate increase occurs (discount/cap etc is based on a variable rate and not fixed and will go up as well as down at times)



Seeing as you havent said what caused the rate to increase, we cannot make any judgement on whether it is appalling or not. I suspect it is not appalling but more you not understanding why at this point. Tell us why it increased and then we can agree or disagree with you

The mortgage decision is dated 5th November. On the companies website there is a rate change published dated 28th Nov whereby the rate associated with this mortgage has increased.

kingstreet

Can you clarify...

You applied for a mortgage on a particular date and expected the rate to be reserved for you when you applied. Your application was in the course of processing and the rate has been changed?

You keep mentioning "decision" are you talking about a full application decision or an agreement in principle decision, as the latter has no rate, or product attached to it.

Only a full application should see a product reservation.

A note of the lender concerned would help, too.

terrencetrentderby

The paper says "your mortgage decision (subject to valuation)" and has a rate clearly displayed on it. That's why I (and forgive me if I am being naive here won't you) "keep" referring to "a decision"

dunstonh

The mortgage decision is dated 5th November. On the companies website there is a rate change published dated 28th Nov whereby the rate associated with this mortgage has increased.

That doesnt sound like the contract but an agreement in principle or even just Key features illustration. The contract is what you sign and is issued to you after the valuation takes place.

What mortgage deal did you apply for? We really need to know this as many deals require the money to be advanced or have the contract issued by a certain date.

Did the valuation come in with the required figure to get that deal or did it fall short?

kevelesopnic

terrencetrentderby wrote: »

The paper says "your mortgage decision (subject to valuation)" and has a rate clearly displayed on it. That's why I (and forgive me if I am being naive here won't you) "keep" referring to "a decision"

Did the valuation put you into a higher loan to value bracket. i.e the original rate quoted was for 80% ltv but after valuation put you into the 75% or less rate

terrencetrentderby

dunstonh wrote: »

That doesnt sound like the contract but an agreement in principle or even just Key features illustration. The contract is what you sign and is issued to you after the valuation takes place.

What mortgage deal did you apply for? We really need to know this as many deals require the money to be advanced or have the contract issued by a certain date.

Did the valuation come in with the required figure to get that deal or did it fall short?

Applied for 90% 4 year fixes with Woolwich. Still 90% albeit the valuation came in ten grand under; the deposit is still 10% but the loan is 9k less

holly_hobby

terrencetrentderby wrote: »

The paper says "your mortgage decision (subject to valuation)" and has a rate clearly displayed on it. That's why I (and forgive me if I am being naive here won't you) "keep" referring to "a decision"

That is not an offer, but an AIP/DIP based upon the lenders agreement to accepting you as borrowers for the noted amount. Of course this is subject to survey, as for many reasons the property may not value up, or be suitable for mge purposes - upon whicn the formal offer of mge is based.

The only time a rate is reserved from submission, is if a booking or reservation fee is chargeable and paid - as this essentially reserves a tranche of the funds available at that rate for your mge should it go through to completion.

Unfortunately, if no such reservation/booking fee was requested and paid, and the lender has revised their product portfolio between your initial application and offer/completion - there is little to be done. Indeed, if you flip it over, if their rates had reduced (instead of increased) you may well have wished to apply for a product switch, to benefit from the now lower payrates available (notwithstanding suitable LTV etc) .... so swings both ways I'm afraid, and whilst you and others, will have been unlucky being caught mid-way by the portfolio changes, its just one of those things.

Hope this helps

Holly

Wutang_2

terrencetrentderby wrote: »

Applied for 90% 4 year fixes with Woolwich. Still 90% albeit the valuation came in ten grand under; the deposit is still 10% but the loan is 9k less

Can you start making your responses shorter please with less information?

Would help:D

cotswoldhealth

Looks as though Andrew Georgiou is still harrassing people and being rude!