Were we mis sold mortgage?

GMS

Was the lender Virgin Money?

Surely the terms and conditions were checked prior to proceeding? You stated...

We were happy with the mortgage that we got offered and started the build

Now you aren't?

dunstonh

Whilst you haven't had a very good service from the mortgage adviser, you have ended up on the terms you should have had from the start. So, financially, you are no worse off than you would have been had the correct information been in place from the start.

Self builds are notorious for costing more than planned. Valuations on final outcome are also usually different to early projections. So, paying more is normal.

It sounds like the terms differed because the valuation came in different and took you over the 75%.

I contacted financial ombudsman who is writing complaint to mortgage lender on our behalf.

Thats a shame. It would have been better to complain directly. Anyone who has viewed third hand written complaints via the FOS will know that they are normally filled in by people who don't know what they are writing about and won't write down the key points or get many of the issues recorded.

I spoke to advisor stating I'm not happy about how he failed to provide us with accurate terms and information.

probably as the terms you originally signed said something along the lines of "subject to valuation" or words to that effect. Revised offers tend to come out via the lender.

You will have to wait and see now. It will really come down to what advice your solicitor gave you, what advice the adviser gave you and what has been documented. Hopefully, you didnt bypass legal advice (many do to try and save money). The solicitor is the one that would explain risks in the contract and things to be aware of.

Moneyidiot

Thrugelmir wrote: »

Given the nature of the transaction. There is an obligation on the borrower too. As the contract you signed with the builder would have clearly specified the stage payments. Not defending the advisor per se. However the fact you seemed oblivious until the solicitor made contact doesn't make for a robust case.

No solicitor made contact. Stages were agreed with contractor, yes. Time limit, yes - based on misinformation from advisor. What I'm trying to point out is that our interest rate was changed and we were not informed by advisor nor agreed to change. We only found out because I phoned lender about higher monthly payments. We did not receive the new offer from advisor or lender and were lead to believe by advisor that the only thing tht changed was final amount. He admitted that he should have twigged on that interest rate would increase when LTV increased. He accepted responsibility for that.

Moneyidiot

dunstonh wrote: »

Whilst you haven't had a very good service from the mortgage adviser, you have ended up on the terms you should have had from the start. So, financially, you are no worse off than you would have been had the correct information been in place from the start.
[COLOR="rgb(244, 164, 96)"]we certainly would not have opted for a 85% loan to value mortgage and wouldn't be on the interest we are on now - we will be out £30000 by the end of the 25 years - this annoys me as I have 2 children who would benefit of that in savings[/COLOR]

Self builds are notorious for costing more than planned. Valuations on final outcome are also usually different to early projections. So, paying more is normal.
[COLOR="rgb(244, 164, 96)"]are you saying that there will be a valuation on completion and our final amount is based on that? Do we not get the full loan amount that was "agreed"?[/COLOR]

It sounds like the terms differed because the valuation came in different and took you over the 75%.
[COLOR="rgb(244, 164, 96)"]correct
[/COLOR]



Thats a shame. It would have been better to complain directly. Anyone who has viewed third hand written complaints via the FOS will know that they are normally filled in by people who don't know what they are writing about and won't write down the key points or get many of the issues recorded.
[COLOR="rgb(244, 164, 96)"]i think it's obvious that we were clueless going into this - that's why we went through the fin advisor[/COLOR]



probably as the terms you originally signed said something along the lines of "subject to valuation" or words to that effect. Revised offers tend to come out via the lender.

You will have to wait and see now. It will really come down to what advice your solicitor gave you, what advice the adviser gave you and what has been documented. Hopefully, you didnt bypass legal advice (many do to try and save money). The solicitor is the one that would explain risks in the contract and things to be aware of.

[COLOR="rgb(244, 164, 96)"]no we didn't seek legal advice [/COLOR]

Moneyidiot

GMS wrote: »

Was the lender Virgin Money?

Surely the terms and conditions were checked prior to proceeding? You stated...

We were happy with the mortgage that we got offered and started the build

Now you aren't?

Yes. First offer was great. We didnt realise however that completion date was 16 weeks from offer. We asked advisor about it and he said 6 months. He admitted he got this wrong. The terms changed with the second offer. We did not receive the second offer to look through.

Thrugelmir

How did you arrive at the possible valuation of the property when finished?

Moneyidiot

Thrugelmir wrote: »

How did you arrive at the possible valuation of the property when finished?

Lender sent surveyor out

Thrugelmir

Moneyidiot wrote: »

Lender sent surveyor out

So you didn't seek independent advice as to its final valuation when constructed, before signing the build contract.

Moneyidiot

If f advisor admitted he made mistakes which affect our mortgage payments, is that the same as accepting negligence? If so, can anything be done?

Moneyidiot

Thrugelmir wrote: »

So you didn't seek independent advice as to its final valuation when constructed, before signing the build contract.

Sorry, don't understand what the final valuation has got to do with the build contract.