Incorrect Settlement Figure Given - URGENT HELP PLEASE

NorthernTony

Bottom line up front - Mortgage company 'A' gave me a settlement figure for 01 Jan 15 of £101K in Oct. Today they have told me that was incorrect and they should have said £103K.

What can I do? What are my rights?

Detail. I am remortgaging at the end of a fixed deal and as part of that process I asked for a settlement figure in Oct as at 01 Jan 15 when I would be able to leave without penalty. I was told it would be £101K and I confirmed this at the time. I then went through a broker and have a new mortgage ready to go, clearing that one on 01 Jan 15. I today telephoned Mortgage Company 'A' to check when they would want the transfere etc and I was given a settlement figure of £103K! After some discussion they have played back a recording of my call to them in Oct and they have agreed I was given an incorrect figure. I have remained calm and polite (goodness knows how as this is going to sink me) and I understand the chap on the end of the phone is just doing his best.

Their 'complaint resolution team' are going to call me next week to discuss it but their advisor today said it would be unlikely they would agree to honour the figure given in Oct. If that is the case I cannot afford to move as my new mortgage will be short by £2000. This is a disaster as I have the mortgage in place and gone through all the credit checks etc, hence there are now 'footprints' all over my credit reference etc.

Where do I stand legally? Surely this isn't fair that I am given one figure in Oct (which the company agree was given to me) only for it to become £2000 more a couple of months later. What do I say on the phone? What is my course of redress should Mortgage Company 'A' say 'tough, you now owe us £103K'.

Thank you in advance for any advice ... I could cry at the moment. I have worked bloody hard to buy my house and keep a decent credit score, this feels at risk now :-(

I will name 'Company A' should I not get resolution but at the moment I am keeping their name off this as they might just do the decent thing.

Thank you :-(

kingstreet

You'll need to increase your new mortgage to take into account the error. The solicitor handling the remortgage will obtain a redemption statement closer to the completion date (within a few days) to ensure there's enough money.

A redemption figure provided in October wouldn't be reliable for a January settlement.

The current charge won't be lifted if the current mortgage isn't fully repaid, preventing your new lender from taking a first charge, so the solicitor won't be able to complete in these circumstances.

A complaint escalated to FOS will probably see you offered upto £250 inconvenience money.

Thrugelmir

Was the settlement figure quoted in writing?

NorthernTony

Thrugelmir, No, the figure wasn't quoted in writing but it isn't being disputed by Company 'A'. They agree it was the given in October but I realise that it doesn't strengthen my case that is isn't in writing.

Kingstreet, I will speak to the mortgage company next week to warn them there is an issue but it feels really unfair. :-/

Thanks to both for your comments though.

McKneff

Exactly the same thing happened to my daughter, she was refused a mortgage when an unknown default had appeared on her credit file. The same as happened here but she had moved house and didn't get any default letters to warn her.


She missed out on the mortgage and OH had to get the mortgage on his own, luckily it wasn't a big mortgage they needed.


But she did manage to get the default removed and if memory serves me right she got about £150 compensation, but she would have much rather have had her name on the mortgage

Thrugelmir

NorthernTony wrote: »

Thrugelmir, No, the figure wasn't quoted in writing but it isn't being disputed by Company 'A'. They agree it was the given in October but I realise that it doesn't strengthen my case that is isn't in writing.

Mistakes happen. Your lender will only stand by a settlement figure if they are given through the correct internal channels and procedures followed. Not least that the figures quoted are correct.

NorthernTony

Thrugelmir wrote: »

Mistakes happen. Your lender will only stand by a settlement figure if they are given through the correct internal channels and procedures followed. Not least that the figures quoted are correct.

I get what you are saying but I feel I made every reasonable effort to get an accurate figure from my current mortgage provider. Thank you for your comments and advice though

NorthernTony

kingstreet wrote: »

A complaint escalated to FOS will probably see you offered upto £250 inconvenience money.

I was offered £200 from the company but I have pushed it to the ombudsman. :-(

NorthernTony

The company is Nationwide. They changed the resettlement figure again and it is now back closeted to £103K. I am going ahead with settling the mortgage and adding addition funds from savings/family as I would have had to pay a significant amount should I have withdrawn from my new mortgage deal.

Whilst very polite and charming on the phone Nationwide have basically washed their hands of it, accepting the figures have changed several times for no real reason. The whole saga has made be VERY wary of Nationwide.

Goldiegirl

When I worked at a big lender, occasionally a mistake was made with advising a customer of the figure to redeem the mortgage.

When this happened, it was resolved with an apology and normally a goodwill payment.

Very rarely, the solicitor acting for the borrower would insist that the only money they would pay was the amount in the WRITTEN redemption figure. After several months, if the issue couldn't be resolved amicably, the remaining amount would be written off.

But this only happened with written redemption statements. As this was a verbal advice, I honestly think the £200 offer is reasonable.

You haven't made a financial loss due to the error, and you aren't being asked to pay more than you actually owe.

They have held their hands up to the error and have proposed a ex-gratia payment for the upset and inconvenience.

Accept it and move on would seem to be the best course of action