When Does an Application Start?

Lisa35_2

I'm in dispute with my new mortgage provider over when I applied for the mortgage.

In short we got a DIP then switched current accounts to them to be eligible for our preferred mortgage. When the switch completed we applied for the mortgage. We should have been eligible for £250 cashback as a current account customer but they are saying we applied before the account switch. Their viewpoint is the application process started with the DIP.

I am challenging this as I found a document on their website which outlines the application process as:

1. Decide how much you want to borrow
2. Get a DIP
3. Reserve your product and apply

This has been ongoing since October but unfortunately for them I am not one of those 'give up and go away types'. They turned down my original complaint. Armed with the above document from their website I've asked them to look again.

But I am now at the stage where I can refer it to the financial ombudsman. Do I give them a bit more time to respond (they've had two weeks since I sent them the above) or do I go to the ombudsman? Will the ombudsman do anything? If I go to the ombudsman and then the mortgage provider settles my complaint will this cause me any issues?

And what's your understanding of when the mortgage application starts?

chelseablue

Who is the lender?


We sorted our mortgage through a broker and were told that getting a DIP is not a full application.


We got a DIP back in August but didn't submit a full application until we had an offer accepted on a house in November

Lisa35_2

Thanks for the reply.

The lender is Nationwide. This was a very straight forward remortgage. No debts, LTV around 40%, borrowing about 1.4x joint income.

However I've already received £200 compensation following a month's delay in getting the mortgage after they 'forgot' to process my paperwork!

My opinion is a DIP is not an application. And I found a document on their own website that (I believe) supports that opinion. Just wondering what others thought or if anyone else has encountered a similar issue.

Berger_3

You cant choose a product with Nationwide until you apply IIRC, so presumably you would've already had your current account with them at the point you progressed to application stage and then selected the cashback product.
It appears they are possibly just being petty having already given you £200, which of course is not an excuse.

betmunch

You can choose a product with nationwide before you apply.

Does your KFI state you will be getting the £250? I believe it begins and ends there.

In the incentives section, its either noted or it isnt

Lisa35_2

Thanks for your comments.

When you apply online you choose your product and then apply. I completed this as one stage after the current account switch completed. I did not reserve a product before the current account switch completed.

As always the full story is slightly more complicated as the website wouldn't allow me to apply for the current account customer rate - an issue I spent more than an hour on the phone trying to sort out and led to my submitting my complaint in the first place.

And also why the question of when does an application begin is so important.

betmunch

They should have a recording of your hour long phone call which should have either confirmed the incentive or not.

In the phone call did they say you were right and should have had the incentive?

amnblog

An hour here, and hour there - this is working out as below the minimum wage for our OP so a complaint to the EU may be in order.

Thrugelmir

As far as Nationwide are concerned.

A DIP certificate is a free, no-obligations confirmation of whether we’d be prepared to lend you.

So one can see their point of view. The process had already started as far as they are concerned. Whether you decide to proceed or not is down to you.

Lisa35_2

During the phone call they did not confirm I could have it but nor did they say categorically I could not. However I was on with a trainee who didn't seem sure of anything which is why I submitted a complaint in writing immediately after.

Dealing with them in writing seems the only way of getting any sense out of them.

David_White

betmunch wrote: »

Does your KFI state you will be getting the £250? I believe it begins and ends there.

This is a key question.