Difference in wording of morgage offer letter and morgage conditions

rowan62

We have been told by our morgage company that there has been a difference in their morgage offer letter and the morgage conditions. They have also advised that they might have given inappropriate advice .Is this morgage valid?

kingstreet

Inappropriate advice?

About what?

You're going to have to spell it out a little clearer. What has been said and done and what are you trying to achieve?

rowan62

kingstreet wrote: »

Inappropriate advice?

About what?

You're going to have to spell it out a little clearer. What has been said and done and what are you trying to achieve?

Their letter states that following an internal review they have become aware that the advice they gave us about our morgage options may not have fully established what was affordable based on our personal circumstances and incoming and outgoings at the time they gave it.As a result they may have recommended a morgage that was not in fact affordable to us, their words.

Wh05apk

Do you mean, can you stop paying the mortgage? if so I suspect not, although if you wanted to repay them, I suspect you could probably get away without paying any redemption charges.

kingstreet

Going back to your original question, "Is this mortgage valid?" the answer would be yes. You have executed a contract and that culminated in a mortgage deed tying a loan to a property as security.

If the question should have been "Am I likely to receive some form of redress for my lender's actions?," I would say that is likely, although how this might be quantified I'm not sure.

You will need to establish what your lender proposes to do about this situation. If unhappy with the proposed solution, you have the right to escalate to the Financial Ombudsman Service (FOS).

rowan62

Wh05apk wrote: »

Do you mean, can you stop paying the mortgage? if so I suspect not, although if you wanted to repay them, I suspect you could probably get away without paying any redemption charges.

No certainly not asking if i can stop paying them .But wondering how they can get away with recommending an inappropriate product and also with a difference in their morgage offer letter and the morgage conditions.Surely they should be liable for some kind of compensation to their client.As inappropriate advice of this magnitude can have serious consequenses for people.

kingstreet

How did you purchase this mortgage?

Did you actually request advice, in the sense it is meant by the FSA?

Lenders, more often than not, provide information and you choose a product from that.

Brokers tend to give advice, based on an analysis of your circumstances and followed-up by written reasons why the recommended product best suited your needs.

How did the process work in your case?

Did you receive an Initial Disclosure Document from the lender/adviser?

rowan62

kingstreet wrote: »

How did you purchase this mortgage?

Did you actually request advice, in the sense it is meant by the FSA?

Lenders, more often than not, provide information and you choose a product from that.

Brokers tend to give advice, based on an analysis of your circumstances and followed-up by written reasons why the recommended product best suited your needs.

How did the process work in your case?

Did you receive an Initial Disclosure Document from the lender/adviser?

It was a broker who gave advice, no initial disclosure document

kingstreet

So, the broker advised you which mortgage lender/product to take. You weren't given an IDD, so you had no idea of the service offered, how the broker was paid, compensation arrangements etc?

Now, the lender has said it has erred, mentioning the word advice, when it actually gave you none, it merely accepted the case from the broker?

This gets odder and odder...

Wh05apk

rowan62 wrote: »

No certainly not asking if i can stop paying them .But wondering how they can get away with recommending an inappropriate product and also with a difference in their morgage offer letter and the morgage conditions.Surely they should be liable for some kind of compensation to their client.As inappropriate advice of this magnitude can have serious consequenses for people.

If you can show you have been dis-advantaged, then yes, you would be entitled to compensation, how do you feel you have been dis-advantaged?

rowan62

kingstreet wrote: »

So, the broker advised you which mortgage lender/product to take. You weren't given an IDD, so you had no idea of the service offered, how the broker was paid, compensation arrangements etc?

Now, the lender has said it has erred, mentioning the word advice, when it actually gave you none, it merely accepted the case from the broker?

This gets odder and odder...

I have to admit iam no expert on the technical name for documents and wonder if there is another name for an Initial Disclosure Document, but to the best of my knowledge i have nothing by this name in my possession.Iam sorry iam not more knowledgable on those things.