Interest rate different on Mortgage Offer than the one signed for

amjad171

I applied for a 5 year fixed at 5.69% with Halifax around July through a broker for a remortgage. I got the offer through last week and the rate on there is 6.19%. I have got my broker to chase this up but he is saying its gone back to the underwriter now waiting for a decision.

Has anyone experienced this before and what are the chances Halifax will give me the 5.69% rather than the 6.19%.

If I complete this week and the rate is not changed will Halifax change it in the future if the underwriters agree?

Many thanks

dunstonh

Has anyone experienced this before and what are the chances Halifax will give me the 5.69% rather than the 6.19%.

Dont know the specific deals in question but usually fixed rates have to be accepted and mortgage be in place by certain dates. If that date passes, you can find the rate has been amended.

Other things that can affect it are valuations. If the rate is linked to a certain loan to valuation and the value of the property was less than expected, you can find yourself moving to the next interest rate tier based on LTV.

If I complete this week and the rate is not changed will Halifax change it in the future if the underwriters agree?

It shouldnt change after completion for the next 5 years.

amjad171

If the error was on the part of Halifax for the process getting dragged on, does this still mean if the old rate no longer exists there is no chance of me getting it as it has now expired? does the fact that I signed for a 5.69% not count for anything or is it all to do with timescales?

The LTV returned back fine, the property was valued at 130k and the amount borrowed is 108k.

I think i phrased the last part wrong, if the solicitors complete for the 1st of sept and this issue regarding the wrong rate still exists will halifax, will they change the rate to 5.69% from 6.19% if they believe an error occured from their side?

thanks

dwsjarcmcd

Did you pay any sort of committment fee with your application? If so, then that normally would guarentee that you have booked your rate.

Did this offer come as a complete surprise to you, did your broker not discuss this pretty fundamental change with you before you got this. Even if dunstoneh is right with any of his explanations, your broker should have let you know before you got the offer.

I suggest you ask him, rather than the Halifax, some pretty hard questions around when he submitted the application and what communication he has had from them, particulaly as it will not be 'underwriters' who make decisions on the price of the loan but their product people!

amjad171

To be honest with you my broker has been terrible throughout the whole process, I know for a fact he submitted the application late, but when the rate was still at 5.69%. I didn't pay any fee for this rate.

The offer with the higher rate did come as a suprise because everytime I spoke to him and went to see him I would confirm with him that I am still getting the 5.69% and he would say yes.

So in effect when he says the underwriters are looking at it he is lying or is he getting the underwriters confused with the product people.

By the sounds of it, I think there is no chance I will get the rate I signed for.

dwsjarcmcd

amjad,
Was there any sort of fee payable at the time of application? What did your broker say about any fee (if payable). If this was not your fault, and you did everything you were supposed to then either
1. The Halifax should move you to the lower rate - remember offers are valid for several months, so timing should not be an issue.
2. If the broker was late submitting the application, or it did not have the fee (because he didn't ask for it) or something else was missing, that he didn't ask for them you should consider a complaint against the broker.

You need to speak to the broker to establish exactly why this rate was not honered by the Halifax, inclusing when it was submitted, when the Halifax withdrew the original product and what communcation he had from them.

dunstonh

1. The Halifax should move you to the lower rate - remember offers are valid for several months, so timing should not be an issue.

It is if the offer is withdrawn. Most fixed rates have to have got to a certain stage to get that right. Typically, that can either be application in their hands and/or money advanced by a certain date.

That possibly gives query under your second point though.

dwsjarcmcd

dunstonh wrote: »

It is if the offer is withdrawn. Most fixed rates have to have got to a certain stage to get that right. Typically, that can either be application in their hands and/or money advanced by a certain date.

That possibly gives query under your second point though.

I agree, and lenders usually give 24/48 notice of these withdrawals to allow cases to be submitted, which is why I think the fault may lie away from the Halifax

amjad171

Thanks for your comments.

I think the broker is more at fault than halifax to be honest, but I do know that he did get the decision in principle when the rate was 5.69%, there are no fees with this as it is a remortgage and the fees(valuation and legals) were free.

Now remembering vaguely from what he told me last week the reason the offer was issued at a different rate was because to get it complete for this month end he got halifax to rush the application through and in doing so they gave their "current" equivalent rate, just reading this doesn't sound true and hearing it from him made me not believe him, although he did say this same thing happened with another client and halifax gave the original rate in the end.

Rick62

Either your broker doesn't know what he's doing or he is lying, but probably both. Rushing the application through is nothing to do with the rate, that rate was available or not. The only case in which the underwriters would be involved is if you breached the criterior (eg 0ver 85% LTV rather than below etc) but really they are interested in IF to lend to you, rather than which product.

Did you get a product Key Facts Illustration when you applied? This would clearly lay out the rates and fees etc.

Most likely is you applied about 12th July when they increased the rates on their Fixed products without warning and your broker didn't apply in time. He should have told you and reviewed the alternative options at the time though. If this is the case you would be very lucky to get the better product.

amjad171

Thanks Rick62

As an advisor who has more knowledge than me, do you know what day halifax removed their offer of 5.69% on remortgage rates, I know my broker is with the mortgage times, do they get "special rates"?

I didn't get any KFI from the broker as I thought this was normal procedure and didn't know if I had to ask for it. I am borrowing less than 85% the LTV, but I remember him saying it's with the underwriters. I am going to go and see him after work, can you advise of any questions that i can have ready for him to see what he has done?

Thanks