Possible mis-sold mortgage

BobbyLy

Hi

I recently applied for a mortgage through a broker for a fixed rate product with an offset account attached. I was accepted for the mortgage and after exchange of contracts I asked my broker why I hadn't received any details about the offset facility.

It turns out the mortgage didn't have an offset facility. This apparently was a c*ck-up from where the broker sourced his mortgage deals, ie the offset account shouldn't have been advertised with the deal that i chose.

Question: Can i redress the broker to sue/recover brokerage fees as what i signed up for I didn't get??

somethingcorporate

What has the broker said about this? Are you actually any worse by not having the off-set? non-offset rates tend to be better.

ACG

Did you want an offset mortgage or was this just an addition that was part of the mortgage?

If you didnt specifically want an offset mortgage but you wanted the cheapest then its not miss sold if this was the cheapest.

More info is needed really.

Have you completed? If not it could still be changed to an offset.

dunstonh

Can i redress the broker to sue/recover brokerage fees as what i signed up for I didn't get??

What brokerage fees have you paid?
What has your broker said about this when you broght it to their attention?
Why would you want to sue the broker when there is a free of charge complaints process?
Did you actually want and need the offset account or was that just coincidence (the mortgage broker factfind stating your needs will be key to that and will be recorded - so no point making it up if you didnt need it)?
Can the mortgage be changed? if so, no harm has come from it.
Are the product terms better or worse than the offset product?

holly_hobby

If you haven't yet completed, and there is no reservation fee on the fixed - then a switch to an offset product with the same lender should be no issue.

If you have completed ....

It all depends what you asked him for ...

A fixed/cheapest product OR an offset mge ?

Hope this helps

H x

BobbyLy

What I wanted from the mortgage was a low rate 3 or 5 year fixed rate with the possibility of an offset facility. The best rate available to me was one which offered an offset facility.

Brokerage fees: £199

The difference in application fees between the offset and non offset mortgage is now £1000.

I complete next week.

On the Key Facts illustration Section 4 Description of this mortgage it says Fixed Prime Offset.

I have savings to put against the mortgage although my priorities were firstly a low rate then secondly the offset facility.

I have spoken with the broker and lender, broker says when he sourced the mortgage it was advertised with the offset facility, lender says that the product never had an offset facility.

Thrugelmir

BobbyLy wrote: »

The difference in application fees between the offset and non offset mortgage is now £1000.

and before?

Offset products tend to come at a higher cost than straightforward ones.

holly_hobby

Ok crux is, the product recommended for whatever reason isn't available (was that because it never existed or was pulled before the app was submitted), and whether by broker fault or lender mis-info to them, or a bit of both, its a non-starter. Essentially the lender can't offer you what they haven't got, and can't create a product for you to suit.

You say the difference in fees NOW is £1k, is that the simple fee difference between a std mge and offset with the lender OR are you saying the OS application fee has actually increased by 1k since you submitted your app ? (I have a suspicion this may be an Accord product, whom between some of their std fixed to comparible term offset arrangements, have an additional £1k fee differential).

Setting that aside, it hasn't been mis-sold if you haven't yet completed, as you haven't yet been financially disadvantaged (notwithstanding the situ surrounding the above fee) and/or if OffSet products available now have higher rates, either fixed rate or a higher tracker loading or a reduced discount avilable, from point of offer until now.

So, your choice is (pre completion, which you may want to delay) either stick with the current lender and a fixed rate (utilising the usual 10% ERC free annual lump sum reduction facility), OR you choose an offset from their actual range OR source the market again for a suitable offset product with an alternative lender ...

What costs will be forfeited if you choose an alternative lender ? Who is the current lender you're having the ruck with ?

Hope this helps

Holly x

Let_Us_See

Something quite not right here.

Basically, there are too many “safeguards” in the mortgage process to stop this kind of error occurring. Whilst I am sure the whole picture is yet to be posted (is it ever on these forums?), the simple fact remains the OP was provided with a KFI that confirmed a fixed rate offset – whether this was produced via lender or Trigold/Mortgage Brain isn’t confirmed.

In practice both the subsequent mortgage application and mortgage offer should mirror the terms and conditions of the KFI, including fixed offset, and the checking of the offer against KFI is one of the primary requirements of a mortgage adviser. This is further re-inforced by the adviser’s Suitability Letter that again confirms (amongst other things) the details of the mortgage offer and why it was selected and how it met the applicant's needs. Despite all these safeguards exchange took place before anyone raised the alarm?


Normally, I am a staunch supporter of advisers, but despite all the various steps in the mortgage process something appears to have gone wrong.

dunstonh

Normally, I am a staunch supporterof advisers, but despite all the various steps in the mortgage process something appears to have gone wrong.

You are right that it does seem to have got to a late stage before being raised given all the safeguards that exist in the process. The KFI, the offer letter etc, the solicitor verifying the terms before exchanging contract......

It would be good if the questions asked on this thread were answered as we need to know those answers to offer opinion.