Were we mis sold mortgage?

Thrugelmir

Moneyidiot wrote: »

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

I'll rephrase the question. On what basis did you decide that the purchase price was reasonable.

Moneyidiot

Thrugelmir wrote: »

I'll rephrase the question. On what basis did you decide that the purchase price was reasonable.

The price coincided with sale prices of similar new builds in the area.

The fin advisor has admitted to making mistakes. We had the right to receive sound reliable advice from him and he did not fully explain the terms and conditions of the second mortgage offer to us. That is unprofessional and negligent on his part, is it not?

WellKnownSid

Moneyidiot wrote: »

The price coincided with sale prices of similar new builds in the area.

Sale price of new builds or cost price of self builds? From the way you word it, it sounds like you were willing to pay the inflated sale price of a new build but take on the all the risks associated with a self build project?

The point of self-building is normally to save money, not pay the full price.

Blackbeard_of_Perranporth

Moneyidiot wrote: »

no we didn't seek legal advice

And here endeth today's lesson

Thrugelmir

Moneyidiot wrote: »

The price coincided with sale prices of similar new builds in the area.

The fin advisor has admitted to making mistakes. We had the right to receive sound reliable advice from him and he did not fully explain the terms and conditions of the second mortgage offer to us. That is unprofessional and negligent on his part, is it not?

Negligence - is a failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

You walked into this transaction with your eyes wide open. Seems to now be a case of "People in glass houses shouldn't throw stones" as they say.

As the buyers you must accept a huge part of the responsibility. As you failed it appears to read and comprehend the contracts yourselves or seek any advice as to the possible value of the property. The FA isn't in anyway connected to the property itself. Other than sourcing a mortgage. May have made mistakes. However none contributed to your financial loss. Those belong to you.

Sounds as if you have overpaid for your dream home. But does it really matter? As it's been built to your specification.

dunstonh

The mortgage adviser is there to provide advice on the mortgage. The solicitor is there to provide advice on the risks of the contract. The lenders own surveyor/valuer is there to provide the lender with an opinion on valuation so it can issue the applicable terms and make sure the lender can keep check on progress.

You chose not to seek legal advice. So, you did not get told anything in relation to the risks of your transaction. Only the solicitor can give legal advice as no-one else in the process is qualified to supply legal advice. They can only give specific risk warnings in relation to their area. You saved yourself about £300 by deciding not to take legal advice. However, looking at what you now say it is costing you, that appears to be false economy.

The mortgage adviser may have made mistakes but they dont appear to have changed any outcome and they were corrected at no cost to you (i.e. you got what you should have had at the cost you should have had it). So, you are not financially worse off because of the actions of the mortgage adviser.

You appear to have misunderstood how valuations work and didnt employ a valuer of your own to give you a value but relied on your personal opinion. An opinion that turned out to be wrong. You should have sought a professional valuer to give you an opinion if you wanted a more likely figure of what it would end up with.

You are financially worse off because of things the mortgage adviser has no control over. So, it would be unreasonable to expect the mortgage adviser to pay for those things. Based solely on the limited information we have and one side of the story, I would expect rejection of the complaint but perhaps a goodwill payment of £100-£250 for inconvenience for the errors. Note, we only have what you are saying to go on. If the audit trail from the mortgage adviser is good then even with the mistakes, if they were sorted quickly with without inconvenience, there may not even be a goodwill inconvenience payment. Remember you are looking at financial loss the mortgage adviser has created but nothing you have said indicates the mortgage adviser has created any financial loss.

Moneyidiot

The lender had the right to amend the offer if completion had not taken place before completion date.
The fin adv told us we had 6 months - we had 16 weeks.
He misinformed us. That was negligent.
The terms of the offer were changed. The fin adv did not provide us with the new offer. He did not realise that the interest rate had changed nor the repayment amount so we were not told of these changes. This is also negligence.
If we had understood the ins and outs of mortgages we would not have gone through a fin adv and gone straight to a lender.
We depended on him as a professional, to provide us with correct advice and explain the terms to us. He failed to do so and myself and my family have to pay the price, literally, for his mistakes.

kingstreet

IMHO this is not an advice issue, its an admin one.

The advisor should have issued a revised KFI, but that should also have been provided as part of the revised mortgage offer from the lender.

The offer sets out the terms and conditions, so the expiry terms of the original offer should have been visible, in the original offer.

The idea of the KFI system is the applicant can see at each stage that the product and terms applied for were the same. If they are changed, a new KFI should be issued and that should be done by broker and lender.

Finally, the solicitor acting for the borrower should be covering the mortgage offer before completion to ensure it meets the borrower's needs and matches their expectations.

I still think there is a valid complaint here, but it's not about advice.

kingstreet

Moneyidiot wrote: »

myself and my family have to pay the price, literally, for his mistakes.

To be fair, you are paying the price you would have paid, not a higher price. I understand that you feel you should have got what you were "promised," but if you'd had the revised offer a few days earlier, would you have proceeded, or would you have terminated the transaction?

Moneyidiot

The advisor should have issued a revised KFI, but that should also have been provided as part of the revised mortgage offer from the lender.

The advisor says that he did not receive the revised mortgage offer. The lender did not send it on.