Urgent Advice on Mortgage Advisor Practice Required

maxxy

My existing fixed rate mortgage period is due to expire end of September 2007, at which point I will revert to the lenders standard rate. With this in mind my wife and I approached the mortgage advisor that we used last time as we had had a good level of service (that was or first mortgage).

After looking at our requirements, our mortgage advisor was confident that we could reserve a good rate even though we weren't due to change until September (redemption fees are liable before September). My wife and I queried at the time that the projections we were given by the advisor all appeared to be valid for 3 months only, but were told "Oh, don't worry about that"!

Having taken the advice we have now been informed by the mortgage lender and their solicitors that the deal we thought we had reserved expires end of June. I have recently discussed this with the mortgage advisor who is adament that everything will be alright (despite the fact that the offer we have had from the lender initially is a 2 deal year rather than the 5 year deal we thought we were getting, the advisor is alledgedly resolving this). I am not as confident as the advisor and am eager to know if I have any recourse against the advisor if the rate on the deal expires in June and I have to look for another rate. I am in an awkward position as I feel a rate of 5.49% is a good one, however I may have to pay a redemption fee if I take it before the alledged expiry offer of the offer in June. The other option is to let the deal expire and hope that any future deal is as good a rate.

I am keen to hear from any advisors to determine if this is common practice or whether my concerns are founded. As an aside it would be beneficial to me to hear other people's suggestions on this issue.

The details of our situation are below:

Mortgage amount required: £140000
Property value: £165000
Term required: 28 years
Mortgage type required: 5 or 10 year fixed rate, capital repayment.
Rate offered: 5.49% for 5 years, giving a montly repayment of around £822 (Cheltenham and Gloucester)
Redemption fee payable in June: £350ish (£0 at end of September)

As an additional note, I rang London and Country at the same time as I enquired with my existing mortgae advisor and was told it was too early to get a rate and to ring back in late June, which I will do soon.

Any help or advice on this will be gladly recieved.

Maxxy

JoeK_3

Mortgage offers can be extended for another 3 months.

You need to resolve the 2 year and 5 year issue with the advisor.

Check what you have applied for with the lender, as it would seem that you have applied for a 2-year deal.

Check the keyfacts of the mortgage that was originally given to you by your advisor.

Be quick

JoeK

maxxy

Thanks for the prompt reply.

The keyfacts sheet I was given was for a 5 year deal, so I think I may be ok with that aspect. It is good to hear your comments regarding the extension. I am expecting a call from the advisor tomorrow to resolve the issues, however I am also looking round elsewhere in case it cannot be resolved.

Thanks again,

Maxxy