Confused got our mortgage but not what we asked for

buppy

We got a mortgage offer of 120k over 33 years at 2.9% fixed for 5 years. Found a house got the survey done then this morning got sent the mortgage agreement which is different!

It's now 3.4% making it more expensive each month obviously.
It says if we don't take the offer then we will have to pay the valuation which we got free.

Is this normal for it to come through different to the oip?
Nothing has changed our end, the survey was fine valued bang on what we are paying all proof of income is proved as asked etc.

Is this normal or has our broker cocked up? He tried to say that's the one we got the oip for but it's not we have it in black and white what was offered.

It's not a huge amount more but I don't see why we should be paying extra really .

opinions4u

What's the purchase price?

What's the valuation?

Who is the lender?

If the property has downvalued your LTV will have risen. This could mean that the 2.9% product isn't available.

ACG

Have you spoken to the lender or your broker? That should really be your first port of call.

buppy

Purchase price 200k
120k is mortgage
It's with Santander
Valued at 200k

We couldn't get hold of anyone to discus it face to face today but the broker is saying its the one we were offered even though the paper work we have in front of us says different. Nothing has changed from getting the oip it just seems to be a different mortgage product. This one doesn't have the £995 fee but is more expensive % wise.

Thrugelmir

Looking at Santander website your broker is correct. The rate without a fee is actually 3.29%.


The overall cost for comparison for both over the term of the mortgage is an identical 4.2%

In effect your broker is saying that paying the product fee is of no benefit. Even less so if you borrow the money to pay fee and add it to your mortgage.

kingstreet

An agreement in principle does not reserve a product. That happens only when a full application is submitted and accepted by the lender. If the property values up and the other application data is verified and accurate, an offer is issued which reflects the requested product.

There was an L&G Abbey Exclusive product available upto 70% LTV fixed for five years at 2.99% with no booking fee and free valuation and £250 cashback. Product code was K793H - you can see this on your key facts illustration. This product was withdrawn on 31/5/13 and its replacement is 3.29%.

Is this what happened? What was your application date?

kingstreet

I can't see any 3.4% products on the Abbey range. Are you sure it's 3.4%? That's not the APR is it? Please tell us the notional rate instead.

Thrugelmir

kingstreet wrote: »

I can't see any 3.4% products on the Abbey range. Are you sure it's 3.4%? That's not the APR is it? Please tell us the notional rate instead.

There's a 3.29% 5 year fix .

kingstreet

Yeah. And no 3.4%, that's why I think the OP is quoting the APR and it is the 3.29% both you and I mentioned in the other posts.

buppy

Yes sorry 3.29 % was typing with a toddler wailing at me.

Kingstreet maybe thats what happened with the date thing , we got the OIP about a month ago but the actual mortgage came through yesterday .

It just confused me and worried me yesterday that we were expecting one thing and got a different one. I would have expected our broker to tell us at least that it might look slightly different on paper but is roughly the same.

I think the main problem came about that we were told the £995 was added to the mortgage and that our repayments per month would be £481 including that, then this new mortgage comes along and bumps it up to £497 a month not a huge different but we dont have a lot left over each month anyway so makes a difference to us.

Had we known the £995 was payable upfront then I wouldnt have panicked so much when this one came through.

From now on im reading every bit of paperwork to within an inch of its life.

Thanks for your help everyone its put my mind at rest

Im sure I will have more mortgage questions soon, hope you dont mind.