Broker promised rate would NOT change but it has!!!

kelvinwebb

Hi,

My Broker - MoneyQuest, promised me that the rate we had agreed with the lender - Advantage, would be honoured throughout the application process because they had such great links with the lender, but now he tells me that they are not going to honour it and the rate has gone up to 6.04% (self-cert) (from 5.84%) which means an extra £13 per month and an extra £230 on the arrangement fee and the rate fixed for only two years as opposed to three years

This now means that they are not the most competitive but I have already forked out £430 for the survey/valuation.

The broker said "sorry" but that doesn't do anything for my £430.

Anyone have any experience in a matter like this and what to do?

Ta

betandjon

Hi,
It seems the norm that we always end up paying more,i suggest you take whats on offer as to start again will cost even more money, it's a good rate for self cert and you can always look for another deal in 2years John.:beer:

dwsjarcmcd

Submitting an application with any lender should guarentee you the rate that you applied for. So if the 5.84% was live when you did this, Advantage should honor the rate.
Either your application was not in time, or your broker is not telling you something (probably that he/she did not submit it on time!) I hope your not paying the broker a fee.
Personally I would push it further and ask your broker a few questions, like why are they not honoring the rate.
But as betandjohn say, just make sure you don't cut your nose to spite your face

JoeK_3

It sounds like the 5.84% rate was for being able to prove income and the 6.04 is a self cert product.

Either the broker used the 5.84% rate to attract you to them or they failed to spot that it was not a self cert product.

Have you had a mortgage Keyfacts illustration handed to you by the broker?

JoeK

kelvinwebb

Not sure that i do have the original KFI.

As it happens the first rate quoted was 5.44% but we lost that one because it was around the time of the interest rate hike.

I have to be honest and say that even though I feel like someone has let me down (the broker and/or the lendor) I'm gonna have to go with it.

the offer of 5.84% was definately self cert too.

K

IHateDida

This happened to me but the mortgage company held the rate (5.57% for 10 years) - our mortgage advisor assured us that they would and they even had the name of a supervisor at the Woolwich that said they would hold it at the time. The rate went up to 5.99% and the Woolwich kept it at 5.57% for us.

I would speak to your mortgage advisor again and say that you will go elsewhere unless they go back to the mortgage company - as they can do this, and sometimes the mortgage company will be ok about it. But you have to have started the application process I believe.

luckyfool

Advantage have withdrawn and/or increased rates several times in the last couple of months and each time there has been a short notice period within which the full application has to be 1st submitted to the lender, and then a 2nd deadline about 7 days later when it has to be offered by. As far as I am aware these deadlines have been held to without any exceptions.

I believe Moneyquest package directly for Advantage so it be that something has delayed your application being offered before the deadline.

You could take it further but I think it is very unlikely that Advantage will budge on the interest rate. I also think it is very unlikely you will get a better rate elsewhere if you went for the advantage deal based not just on self cert but also some minor credit problems as the rate sounds pretty good. If you did want to switch you might still be able to reuse the survey as moneyquest package for a number of lenders and have control over the survey, but again I suspect you will not improve on the product you have currently.