Mis-sold a mortgage product

Lunamoon86

Hi All,

Looking for some advice on where to go after being mis-sold a product.

We have been with RBS for 8 years, the last 6 have been on a standard variable as it suited us.

We reserved a new build plot back in October 2015 - then rang RBS in January 2016 for mortgage advice as we were not fixed and would be buying a new house soon so what would our best option be?

The call handler bypassed advising us and offered a product which he felt best suited us as we would be moving and we could port the mortgage over to the new property. Great, we were happy so we signed.

Fast forward 2 weeks and, only by chance, I rang an independent financial adviser as the developer wanted financial clearance and he told me about the new-build 20% loan to value criteria!

We then spoke to RBS and they confirmed that that was the case and to exit the mortgage we would need to pay a 5 grand penalty fee. We filed a formal complaint citing being ill-advised, and the right questions not being asked regarding the type of property we were buying.

Today RBS have decided not to take the complaint further stating they had listened to the phone calls made by us and there was never no mention of a new-build and RBS cannot presume all circumstances when offering a mortgage product. The call handler read off script therefore he also isn't at fault.

We have stated that how are we to know there are different lending criteria depending on the type of property?

Planning on taking it to the ombudsman but wondering if you guys could advise me any further on what to do?

Thanks in advance

LM

kingstreet

You didn't specifically mention a newbuild to them and they didn't as there's no way they can cover every possible eventuality (short lease, non-standard construction, newbuild, above commercial etc.)

I wouldn't like to speculate on the outcome.

How come you reserved in October but only started mortgage planning in January, three months later? It's the wrong way round, speaking as a newbuild specialist broker.

Thrugelmir

Lunamoon86 wrote: »

The call handler bypassed advising us and offered a product which he felt best suited us as we would be moving and we could port the mortgage over to the new property. Great, we were happy so we signed.

Hindsight isn't grounds for complaint. The product suggested and that you accepted must have matched your expectations.

csgohan4

did you read the T+C before you signed? If not why not?

ACG

When you said you were moving, you did not say you were moving to a new build?

I was always told if you are intending to move soon, do not tie in to a new deal or any deal that extends beyond when you plan to move. Personally, I think it would have been prudent for them to delve a little deeper. Agree they can not cover off every eventuality but to ask what your plans are would have been an open ended question to get the information....I am not sure about your chances, but I would personally take it further as I think their process is lacking.

dunstonh

Today RBS have decided not to take the complaint further stating they had listened to the phone calls made by us and there was never no mention of a new-build and RBS cannot presume all circumstances when offering a mortgage product. The call handler read off script therefore he also isn't at fault.

Or putting it another way, you complained about something that the bank wouldnt have known about and you didnt mention yet somehow believe they should have known.

Planning on taking it to the ombudsman but wondering if you guys could advise me any further on what to do?

It is impossible to judge these things on limited info but typically the ombudsman rule on what is known at the time by the adviser. They didnt know and you didnt tell them. So, in that respect, it works against you. On the other side, it would depend on what they did ask and what was mentioned about portability.

For example, if they said your could port the mortgage and left it at that, then you may find the ombudsman goes your way. However, if they said you could port it subject to eligibility then they have warned you of the possibility of it not being allowed.

To be honest, I find it very strange that either you or the lender entered into a long term tie in knowing that you were going to be moving very soon.

amnblog

Very frustrating story which highlights the need to think carefully before locking into a mortgage product when a move is on the cards.

I have no idea what the ombudsman will say here, but it certainly sounds like the Lender has it covered.

Can you not find a way to raise the extra deposit to stick with RBS?