Am I right to be annoyed! Mortgage application

SusanShaw

Hi All,

I was hoping to get your perhaps more experienced advise.

We have arranged a mortgage through a local broker. We had an agreement in principle. We had an offer accepted. We returned to the broker so get the ball rolling. The head of the company was on holiday so we spoke to her daughter who worked there. We explained we just wanted to submit the application and get the solicitors started. She said she would just check through the figures. We said no, it's fine. We spent three hours with the original broker and it's all fine. Before we knew it, she had changed this figure, removed another figure and hit submit. the response from the bank on the computer screen was that they would still lend us the money, but £10K less.

I paniced. She said don't worry, I'll get it sorted. It's only £10.
So this was two weeks before christmas. We have been ringing them everyday for news from the bank. always being told they'll get back to us tomorrow. IWe have sent them all the documents. I email them and they then email by husband with the response!! His email address isn't even on the email. We have not spoken to the Head or the daughter since. Feel like we've been passed to the underling. Hubby rang this morning and they said that the bank is valuing the house today. So does that mean they are going to lend us all the money, providing the valuation is ok? They keep saying we shouldn't instruct the solicitors yet either. The last email literally said 'fingers crossed'.

I'm really annoyed. She shouldn't have changed the figures. They've not contacted us enough and we're still not sure what is going on. The bank apparently aren't going to get back to us until the end of next week now!!

I've not spoken with the Estate Agent yet. Don't want to worry the vendor.

ugh. Am I right to be annoyed? I want to go back to the office and say how much more stressful this has been and really, should they still expect me to pay the brokers finders fee?

thanks
S

ACG

You dont know whether the original figures were correct or not.
Whoever is submitting the application has to ensure it is all correct as they are the ones giving the advice.

So you do not know whether to be annoyed at the daughter or owner as you do not know who has made the mistake.

She has probably said fingers crossed as its out of her hands as is every application. If it does not come back as expected we fight the corner and try to resolve it but the decision lies with the underwriter.

Dont forget, you are probably very tense and stressed by the situation and whilst it is her/their job to try to manage that and your expectations in 3 months time once its all resolved one way or another you will probably forget about it. I HATE taking over files other people have started, I have not been party to all of the information so its never quite the same as one you start yourself.

I would just try to sit back and stop stressing. It will get resolved, whether that be with this lender or another. It is only £10k and unless you are stretching all of the numbers already then its not usually too difficult to overcome.

They should be getting a date by which the underwriter will assess thecase and let you know so atleast you are not chasing on a daily basis but that can sometimes be difficult over xmas/new year.

Im not sticking up for the broker, it does sound like service wise they are falling short but sometimes we do get very poor updates from lenders that its difficult to give the client more accurate information.

amnblog

As ACG says you should not be panicking here.

Certainly the service you appear to have received from this broker is poor but the most likely position is poor communication and all will resolve itself.

My tip is do not contact the lender direct as anything you say to them can cause further complications to the case and anything they say to you may confuse you further.

Speak to the broker and make it clear that you are unhappy with the service you have received to date and give them a chance to put it right.

Thrugelmir

SusanShaw wrote: »

Before we knew it, she had changed this figure, removed another figure and hit submit.

Changed what figures? The "figures" have to be factually correct on the application made.

SusanShaw

We are not stretching numbers but we are certainly at the top of our budget.

With regards to the figures that were changed this was with respect to childcare payments and my husbands pay. I have been on maternity this past year and hubby also shared some of this with me, so the first month of bank statements were slightly off. Therefore, we sat and worked through loads of statements, income and budget to ensure that we put down a fair and honest submission. The daughter then took it upon herself to change what she calculated my husbands wages to be per annum and removed the childcare lump. Some banks take this into account and some don't.

I guess I'm just frustrated as we did spend such a long time making sure we could afford this, and realistically too, for someone to just come along and tap a few things into a computer and potentially threaten our mortgage. It does seem all so important and not having control over it does go against my control freaky nature!!

I appreciate your responses and feel better now. I shall try to remain calm. Thank you.

Thrugelmir

SusanShaw wrote: »

I have been on maternity this past year and hubby also shared some of this with me, so the first month of bank statements were slightly off. Therefore, we sat and worked through loads of statements, income and budget to ensure that we put down a fair and honest submission. The daughter then took it upon herself to change what she calculated my husbands wages to be per annum and removed the childcare lump. Some banks take this into account and some don't.

Evidence of income needs to be in the form of payslips or financial accounts or other documentary evidence. Something which is verifiable. Should be no need to look back over bank statements to derive figures.

Loopy28

I would be annoyed, our broker checked all figures for the agreement in principle. When we proceeded to the full application, the broker just continued the application with all original figures.

The broker should have ensured all figures were correct on the AIP or it wouldn't have been worth anything. So either the original broker is at fault for inputting the wrong figures or his daughter is for amending them.

I would certainly complain when the broker returns about the service.

SusanShaw

Hi all,

Well of course it all went through .We had a bit of a grumble regarding the service and we had an apology. Very relieved. Now, however, we have asked the vendor to knock off £2.5K as the central heating system and boiler requires work/replacing. They are desparate to sell so I'm hoping that they will agree. However, can we still have the mortage as £230,000 and then keep the difference, i.e. hand over £227500, and keep the rest for the works?

kingstreet

No. If the purchase price changes the loan to value will be based on the lower amount.

If, for example you are at a LTV limit, say 90%, you will be limited to 90% of the new purchase price.

SusanShaw

Is there no scope to ask for an 'allowance for work'?

I'm afraid I don't understand your answer. So would it be better to ask the vendor to pay for the works to be done instead?

It wouldn't be a problem for the bank thought, would it? We're are approved for more, so lending slightly less should be fine, no?

kingstreet

If you aren't at a LTV limit for the mortgage or the product, you should be able to retain the same mortgage amount but on the reduced purchase price.

If you are at a LTV limit already, when the purchase price falls, the loan to value will increase if you retain the same mortgage amount, so if the 90% is a lower amount, you'll have to take that lower amount.