I`ve been stitched up on my mortgage!!!

Arijha

Hi, i`m new to this, so if I`m in the wrong place please accept my apologies. Now, 4 years ago, me and my partner decided to take out a mortgage. We had saved up a nice £15,000 deposit so it was time. We went to lloydes tsb to talk about mortgages and how much we could borrow. The mortgage adviser was really good, put us straight and told us how much we could borrow. We started looking and found the perfect house for 120000. I rang William H Brown to make an offer. The guy on the phone told me I would have to talk to the mortgage adviser, I said I already done that with lloydes. But It wasn`t good enough, he insisted I spoke to William h brown adviser witch would make the transaction much easier. I wanted the house so bad, I didn`t want to lose it. Got an appointment with the William h brown mortgage adviser and took all our payslips bank statements and so on, like we did before in the bank, and she said she would look for a mortgage for us, she said the bank only tells u what they have to offer she will look the entire market to find the best deals. Not knowing a great deal about buying a house, I trusted this woman. She sorted everything for us, life insurance, mortgage protection, mortgage... According to her she found us the best mortgage on the market at 7.25%. We`ve bought the house for 118000 she told us to use £13,000 deposit so we had £2000 to pay for solicitors and other bits we needed. So far so good. We borrowed 105.999.00 for 29 years and a month. Mortgage payments where 723.10 per month, mortgage payment was £45.61 per month for both of us and critical life insurance for my partner 47.26 per month and £10.92 for me and house insurance £25.61 per month. And she even said we still have money left after paying all this, many people don`t. After 3 years of paying all this money, my partner was talking to a mate at work about his life insurance and the guy could not belive how much money he was paying. He said he only pay about a 10 a month and he took a mortgage a month after we did with the same people and same adviser and his % is nothing like ours.Bells started to ring... so my partner started to look into cancelling our policies and look for cheaper ones. We r now paying much much less on everything and we cancelled the mortgage protection that we didn`t ask for. We wrote to William h brown to complain as we were "forced" to have mortgage protection but they say we didn`t have no other way of paying for the mortgage if we lost our jobs. We`ve now decided to pay 1,000 to get out of this mortgage, so, off to the bank we go to see the mortgage adviser at rbs (that`s who we got our mortgage with) and the adviser COULD NOT BELIVE HOW MUCH THE PERCENTAGE WAS...:eek: he said he never heard of such high percentage. he said she cost us 9 years on our mortgage, :mad: . We also went to Santander and they said the same, it is too high. For each product she sold us, William h brown got paid £400/£500 so, for selling us the most expensive products in the market they got paid :mad:£2000+. Is there anyone who can tell me if and where I can complain? we`ve trusted William h brown to help us get our lovely home, yes we knew it was going to cost us money, but we didn`t expect to be robed!!! Thank u

angelsmomma

Could you put the above into paragraphs as most people won't be bothered reading blocks of text.

ACG

- Interest rates in 2009 were higher than they are now.
- If you go through a tied broker then you will be paying higher rates on your protection than an independent broker - this may or may be the case for you.
- What was the rate that lloyds were offering at the same time as this broker? Surely if it was less you would have picked up on it?

dunstonh

my partner was talking to a mate at work about his life insurance and the guy could not belive how much money he was paying. He said he only pay about a 10 a month and he took a mortgage a month after we did with the same people and same adviser and his % is nothing like ours.

His "mate" paying £10 is probably only paying for life assurance. Nothing else. You have a more comprehensive package. Some people choose not to protect themselves for risks but take the chance and risk the house in the hope they dont suffer a claimable event.

so my partner started to look into cancelling our policies and look for cheaper ones. We r now paying much much less on everything and we cancelled the mortgage protection that we didn`t ask for.

You did ask for it. The adviser tells you what your financial needs are and how to cover them and you say yes or no. How much coverage have you lost since you made these changes?

We wrote to William h brown to complain as we were "forced" to have mortgage protection but they say we didn`t have no other way of paying for the mortgage if we lost our jobs.

A common response and almost certainly right. If you have a financial need for the policy then the advice to have the insurance is correct.

Forget the insurance side. You are effectively complaining that they sold you a comprehensive package when you have now decided years later that you only want a basic package and are prepared to accept the risks. The adviser has to tell you what you need to protect yourself. Otherwise if you just took out the basic on their advice and suffered an event that was claimable on the comprehensive coverage, you would no doubt be complaining about that. You dont buy a BMW to only complain three years later that a Ford Ka was cheaper.

It should also be noted that the banks are almost certainly more expensive on insurance on a like for like basis. Banks are up there as being one of the most expensive distribution channels.

However, the mortgage is more interesting. 7.25% is high. However, in your post, you dont actually mention who the mortgage is with and what type of deal it was (i.e. fixed, discount, variable, tracker etc). We need to know this to offer opinion. We also need to know when in 2009 you did this. Interest rates didnt drop heavily until mid 2009 onwards. So, if you bought early 2009, then 7.25% on a fixed rate deal would not be unusual or unexpected. You cant compare todays mortgage rates with 2009. Only those in 2009 can be compared.

_Andy_

Put much more simply for people put off by the extraneous details and bold font:

The OP took a mortgage out and went via estate agent advisor.
Advisor sold them appropriate products.
OP now feels because someone they know who has different circumstances is paying less for a totally different product, they have been wronged.

Georgiegirl256

_Andy_ wrote: »

Put much more simply for people put off by the extraneous details and bold font:

The OP took a mortgage out and went via estate agent advisor.
Advisor sold them appropriate products.
OP now feels because someone they know who has different circumstances is paying less for a totally different product, they have been wronged.

Thanks for that Andy! Geez that font goes for my eyes, and is hard to read with no paragraphs.

Arijha

ACG wrote: »

- Interest rates in 2009 were higher than they are now.
- If you go through a tied broker then you will be paying higher rates on your protection than an independent broker - this may or may be the case for you.
- What was the rate that lloyds were offering at the same time as this broker? Surely if it was less you would have picked up on it?

Thank you for your reply, I didn`t know I had to pay for it as nothing was said about it until the end, they just said I had to do the mortgage through them as it was easier for both parties. I don`t know what Lloyds were offering I`m afraid.

kingstreet

If you make a subject access request to the adviser, under S7 Data Protection Act, they will provide you with the sales documentation which will explain how the mortgage and protection suited your needs.

This is the first step to making a complaint, if such an action appears necessary after you have seen the sales documentation.

They may charge you £10 for the trouble.

Arijha

Georgiegirl256 wrote: »

Thanks for that Andy! Geez that font goes for my eyes, and is hard to read with no paragraphs.

If u don`t have nothing good to say, why say anything? I only come here for some advice not to be told how to write in paragraphs. I did say I`m new to this!!!

Arijha

_Andy_ wrote: »

Put much more simply for people put off by the extraneous details and bold font:

The OP took a mortgage out and went via estate agent advisor.
Advisor sold them appropriate products.
OP now feels because someone they know who has different circumstances is paying less for a totally different product, they have been wronged.

No!!! I didn`t know better, I didn`t know what I needed to buy. She saw me coming and taken every penny she could. I didn`t ask for mortgage protection, she suggested the most expensive one. She didn`t show me any cheaper ones at all.

kingstreet

They are required to recommend a mortgage and cover which is the most suitable product for your needs, taking into account cost/affordability.

If you agreed with the recommendations made and those recommendations were correct for you, you got what was appropriate and affordable at the time.

You need the sales documentation, as already mentioned.