Mortgage problems

KeithLe

Hi all. First post here hope some body can help me. Me and my partner were looking to buy a property for the first time. We found a propery that we liked, went to a financial advisor, stated that we wanted to pay 15% deposit and the mortgage over 25 years. That was fine. Got our solicitor, and are 4 weeks through the process so just waiting on the financial advisor getting back to me to tell us the next step.

I got a letter through the post from the mortgage company last week approving the mortgage application, but on the letter it had 10% deposit over 35 years. So I got in touch with my financial advisor and he said he would sort it out. A week later I got an email from my advisor saying I would have go pay £200 admin fee to the mortgage company to amend the details...

I argued that I shouldn't have to pay anything as I stated from day 1 I wanted to pay 15%. My advisor claimed he had to try 10% to see if the company would accept my application.

So basically now I'm stuck and don't know what to do? Why should I have to pay £200 to pay the deposit I wanted? My advisor said he could cancel the mortgage application free of charge but would cost £200 to change it from 10% to 15%.

He tried to find a different mortgage for me but on the credit checks with the smaller company's my name doesn't show up as I have not built up enough points.

What do I do? I'm scared incase this causes the deal to collapse. I can't believe the mortgage company would be willing to loose the some of money for the mortgage over £200.

Any advise would be massively appreciated

Thankyou, Keith

Thrugelmir

Speak to the lender direct.

KeithLe

Ok, thanks. I'll give that a try

pjread

Is the rate quoted what you agreed/expected?

KeithLe

pjread wrote: »

Is the rate quoted what you agreed/expected?

Yes. The 15% over 25 years is what we agreed on. Didn't even consider 10% over 35 years as I had the money there. But my financial advisor said he had to try that with the mortgage company to see if they would lend us the money, and in order to change it to what I want I have to pay a £200 admin fee

amnblog

Did you receive a mortgage illustration from the adviser showing a 15% deposit.

(Was all your intended deposit in cash?)

KeithLe

amnblog wrote: »

Did you receive a mortgage illustration from the adviser showing a 15% deposit.

(Was all your intended deposit in cash?)

Yes and he also gave me a 10% illustration though, and yes I wanted to pay my full deposit in cash

georgan

Don't have the entire picture here but... If the two mortgages are on the same rate and cost why don't you progress with the product assigned to you now and as soon as you start your payments you make an overpayment equal to a further 5% asking to lower the repayment period instead of the monthly instalment. It used to work in the past with all main BSs or banks. The only problem I can see here is in the case Of the £200 being a standard cost for any in-life admin change of the mortgage.

A few thoughts to consider...

amnblog

KeithLe wrote: »

Yes and he also gave me a 10% illustration though, and yes I wanted to pay my full deposit in cash

Obviously someone has their wires crossed here.

What really happened?

KeithLe

amnblog wrote: »

Obviously someone has their wires crossed here.

What really happened?

This is what happened. I seen a house that I liked, I'm a first time buyer, didn't have a clue what steps to take. Went and seen a local financial advisor. They asked all the usual questions, how much I have saved, what I can afford how much I earn etc.
Made the bid for the house I liked, offer accepted. Advisor gave me mortgage options. Told them the lender I wanted to go with. Told them I wanted to pay 15% deposit and mortgage over 25 years. That was fine as I made enough and had enough in my savings for 15% deposit. Then about a week later got a letter from the lender with details of the loan. On the letter it was 10% over 35 years. So I immediately got in touch with my advisor, told them, and they said that's a mistake and to leave it with them. Another week passed and got an email from my advisor telling me I'd have to pay an admin fee of £200 to change the mortgage terms.
Surely I shouldn't have to pay that fee to get what I want? The advisor told me these fees are normal it's the lenders way of making money back from offering such low interest rates.
I'm not saying my advisor is trying to pull the wool over my eyes, I just don't know how the system works and obviously don't want to pay the £200 for the deal I always wanted.
Thanks for you're time

Wh05apk

If you are adamant that you asked for and wanted 15% then complain to the advisor, and ask them to get the offer changed free of charge.