Mortgage is short!

Hutch100uk

I used a mortgage broker to buy a new build property.

He sent us the mortgage information etc and applied for both the mortgage and help to buy loan.

We are just about to complete on Friday and discover (via solicitor bill) that the mortgage is actually short by £1000!!!

I know I should have picked this up earlier but that is what I employed a broker for.

I don't know what to do as I will struggle to pay this extra £1000 and feel its the broker's fault. I'm waiting for the broker to come back to me.

Where do I stand? I'm kind of assuming I'll have to suck it up and pay it or delay the completion........ so angry.

[Deleted User]

Can't you just contact the mortgage firm and ask to borrow another £1k?

Or.. find someone to borrow it from?

Hutch100uk

ringo_24601 wrote: »

Can't you just contact the mortgage firm and ask to borrow another £1k?

Or.. find someone to borrow it from?

If I ask the Halifax to increase the mortgage now, I can only assume this will mean a whole new application process.

I'm supposed to complete on Friday and can't afford to delay that as we need to be out of our current property.

Yes I could borrow the money but, its not really the point. I feel that the broker is to blame.

kingstreet

Yes, the broker does the initial arithmetic and works out the deposit + the equity loan + the mortgage = the purchase price. I'm surprised it wasn't picked up earlier as all the figures are clearly shown on the HTB calculator and authority to proceed for the HTB loan.

However in the months since the applications, the solicitor will also have exchanged contracts with copies of the mortgage offer and authority to proceed in hand and your deposit funds. They should also have reconciled the figures.

If your affordability is alright it should be possible to change the mortgage amount, get a new offer issued and faxed to the solicitor but not on Wednesday for completion on Friday of the same week.

Finally, I know this may be cold comfort, but this extra £1,000 isn't a fee, but is extra equity in your new home, so it's not all bad news.

Hutch100uk

kingstreet wrote: »

Yes, the broker does the initial arithmetic and works out the deposit + the equity loan + the mortgage = the purchase price. I'm surprised it wasn't picked up earlier as all the figures are clearly shown on the HTB calculator and authority to proceed for the HTB loan.

However in the months since the applications, the solicitor will also have exchanged contracts with copies of the mortgage offer and authority to proceed in hand and your deposit funds. They should also have reconciled the figures.

If your affordability is alright it should be possible to change the mortgage amount, get a new offer issued and faxed to the solicitor but not on Wednesday for completion on Friday of the same week.

Finally, I know this may be cold comfort, but this extra £1,000 isn't a fee, but is extra equity in your new home, so it's not all bad news.

I'm kicking myself because I didn't check the figures myself and pick this up before now. But then, why the heck use a broker???

I suspect I will have to suck up this money but will be putting in a formal complaint to the broker for their incompetence.

[Deleted User]

Our broker was an absolute waste of space. He forgot to submit our papers correctly, he didn't manage the mortgage companies inability to receive a fax... I spent so long doing stuff myself, when it came to move house last time I just did it all myself.

Don't expect brokers to be rocket scientists - it's not a job that needs a lot of qualifications.

kingstreet

I take your point but there should have been a lot more people in the process who picked up a simple arithmetic error like this.

Is your ATP correct? Does the purchase price = mortgage + equity loan + your contribution?

Doesn't the £500 reservation fee being refunded help or had you already taken that into account?

Hutch100uk

ringo_24601 wrote: »

Our broker was an absolute waste of space. He forgot to submit our papers correctly, he didn't manage the mortgage companies inability to receive a fax... I spent so long doing stuff myself, when it came to move house last time I just did it all myself.

Don't expect brokers to be rocket scientists - it's not a job that needs a lot of qualifications.

Thank god their service was free as I'd be telling them where to shove their bill!!

Hutch100uk

kingstreet wrote: »

I take your point but there should have been a lot more people in the process who picked up a simple arithmetic error like this.

Is your ATP correct? Does the purchase price = mortgage + equity loan + your contribution?

Doesn't the £500 reservation fee being refunded help or had you already taken that into account?

I can only assume that both the solicitor and the help to buy people probably thought we were stumping up an extra £1k. Maybe they assumed that was the max we could borrow. I really don't know how these things work.

The solicitor doesn't give two hoots, they just want their money.

Unfortunately the £500 reservation fee has already been deducted leaving us with a bill of £1500. Ouch.

[Deleted User]

Hutch100uk wrote: »

Thank god their service was free as I'd be telling them where to shove their bill!!

It's not free! I'm guessing you paid a mortgage arrangement fee? Guess what that pays - the brokers fees. Do it yourself and you'll find deals without arrangement fees.

lee111s

If you haven't got a spare grand when moving house I would be quite concerned about your finances in general.