Broker mistake - mortgage worries from the off

sandinmytoes

Hi, can someone please settle my nerves. I'm a first time buyer and it will be my partner second. My partners property is nearly sold and the equity released will be used as a deposit.

We have made an offer on a nice new home and the seller has accepted.

However, we made our broker aware of an outstanding £4K credit card amount and that it would be settled when the above property was sold. However, our broker omitted (he forgot - sadly mistakes do happen) to pass this information onto the lender (Accord)

Apparently they are happy to lend us the money, but with different terms (over 35yrs instead of 25yrs) as they had flagged up the outstanding credit card amount of £4K.

The brokers mistake came apparent when he past on the details of the altered offer to us. He has since gone back to them to get it changed. This was three days ago. It's like living on pins and hoping for good news each time the phone rings.

The broker offered an alternative of taking the 35yrs deal and overpaying the rest via standing order. I don't claim to completely understand this (however my partner does) but I said I was not happy with it and insisted he went back with the error and hopefully a new offer.

The broker has assured us that the amount we want to borrow is not the issue, it is merely the detail in how we pay it back.

Does anyone know how long it should take Accord to come back to us with an amendment?

I fell I'm panicking at the very first hurdle :-( ....... hopefully unnecessarily

TrickyDicky101

Take the 35 year deal and overpay - that is more advantageous to you than taking the 25 year deal as you would retain the flexibility to limit overpayments in any month where finances were tight.

A reason why you might not want to do this is because you doubt your ability to stick to the overpayments (which would mean you would pay more overall interest than you would if it was a 25 year term).

sandinmytoes

Thanks for the reply. The 35yr old deal didn't appeal because I'm 40 and my partner is 36.

So I take it the over payments would still ensure we finish the mortgage at 25yrs?

Tks

Let_Us_See

Stick to your original request for a 25 year term. However, I am surprised a £4,000 credit card balance results in the necessity of an additional 10 year term.

You can run the figures yourself at

https://online.accordmortgages.com/public/mortgages/quick_enquiry.do

Just make sure the information you input is correct and then play around with the length of term and check how if affects affordability.

TrickyDicky101

If you made the overpayments each month then yes you would finish the mortgage at the same time as you would if the term was 25 years with no overpayments.

Are you sure that Accord would advance you a mortgage with a term of 35 years?

sandinmytoes

TrickyDicky101 wrote: »

Are you sure that Accord would advance you a mortgage with a term of 35 years?

My partner has been dealing with the broker and this is what the broker has told her.

Being honest, I felt really uncomfortable when it was put to us. Hence why we went back and wanted the 25yr mortgage.

I'm disappointed the broker has made the mistake, but these things do happen. I just hope it doesn't cause any issues now. Any thoughts?

Thanks again

comeandgo

Take the 35 year one and over pay on it. There is a high probability you will be remortgaging after a few years anyway.

haras_nosirrah

accord will count the credit card even if you say you are paying it off so it probably won't make a difference

they are bit like santander in that they will take the credit report as fact even if you say the credit card is being repaid - mainly because it can be shown that a number of people don't pay the cards off when they say they will.

take the 35 years and set up a standing order for the difference between the 35 and 25 year terms - that way it will be the same as if you were paying 25 years anyway

sandinmytoes

Let_Us_See wrote: »

link

Thanks for the link.The amount we can borrow is more than enough with or without the Credit Card debt included. There's only £16996 difference in the amount we can borrow over 25yrs with that calculator.

Let_Us_See

I don't quite understand your reply? Does the affordability calculator confirm you should be able to proceed with a 25 year term?

An adviser recommending a 35 year term when a 25 year term is proven to be affordable would incur the wrath of both compliance and FCA.

sandinmytoes

Yes it does, with or without the outstanding £4K Credit Card