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Mis-sold mortgage advice

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Marshemma
Marshemma Posts: 1 Newbie
edited 30 October 2016 at 9:17AM in Mortgages & endowments
Hi

I recently enquired with my mortgage provider about borrowing extra and although we didn't go ahead with moving I was informed that I could take a cheaper fixed rate on 1 part of my mortgage (I have 4 parts to it) this sounded great as the advisor told us that we could halve the payment from £175 - £84 on this part of the mortgage. He proceeded in setting up a telephone appointment for us, I had a half hour telephone interview and they requested our payslips to proceed. I then had the hour long more in depth interview arranged. When it come to having this appointment I was told that I wasn't actually eligible for the product as this part was already on a fixed rate. I looked back over my paperwork and actually this was true I was on a fixed rate, however I'm really stumped at how I was offered a product I can't actually have, and then the mortgage company got so far down th process to offer me appointments to set up the mortgage and ask for payslip proof.

Needless to say I have made a complaint to the mortgage company, they have listened to the tapes and agreed with me and offered me £150 compensation. Should I take the £150 or persue it further? I know a friend of mine works in a building society head office and told me for them to investigate it will cost them £500 so it feels like they are trying to pay me off cheap for their mistake. I'm not sure what would happen with a query like this if I refused the compensation and took them to the ombudsman, they have agreed they were in the wrong in offering me a product I wasn't entitled to.

Thanks
«1

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What exactly have you been mis-sold?

    You don't seem to have been sold anything.

    all that has happened is both the lender and you have wasted each others time.
    £150 for a bit of wasted time seems reasonable.

    I suggest you familiarise yourself with what mortgage products you have and when you will be able to change things to reduce costs.
  • Dobbibill
    Dobbibill Posts: 4,193 Ambassador
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    You were given wrong information, so they have offered you compensation to apologise for that. That is fair.
    You have not suffered any financial loss.

    What your friend is referring to is the bank's cost to go to FOS. This has no bearing on your complaint. I hope your friend also told you FOS could award you less money.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    Why have you entitled this "mis-sold" when nothing was sold, let alone mis-sold ?

    It wouldn't surprise me if you took it to the Ombudsman, apart from saying this was trivial, they downgraded your award, this was just a trivial honest mistake someone made that cost you nothing monetarily. Apart from a couple of hours of your time, you've lost nothing, £150 seems ample.
  • zagubov
    zagubov Posts: 17,938 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OP, the very fact you're considering wasting more time on this undermines your claim to have suffered from wasted time already. I'd quit while I was ahead, and move on.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
  • I would take the the £150 and waste no more time on it, no harm has really been done as you haven't been sold anything you still have the same product you had before and you get £150 from the inconvenience of the time you lost.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
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    Op so your on a fixed rate is this right? and you enquired about remortgaging to borrow more??
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • So you have been paid £150 for 1.5 hours of wasted time and no financial loss? Unless you earn nearly 300k a year and can therefore prove that your time is worth more than £100 an hour after tax I would quit while I was ahead. I would have expected your compensation to have been more like £25 - £50 for inconvenience so you have done rather well
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Marshemma wrote: »
    however I'm really stumped at how I was offered a product I can't actually have, and then the mortgage company got so far down th process to offer me appointments to set up the mortgage

    An individual make a mistake, an oversight. You've been offered compensation for your wasted time. Take it. As you've nothing to gain.
  • dunstonh
    dunstonh Posts: 119,687 Forumite
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    No mis-sale here. It appears that the person failed to check early on enough the terms of your existing mortgage. A simple error that resulted in a bit a waste of time. The employer has decided that £150 compensates you for the time. A very reasonable amount to be fair.

    I know a friend of mine works in a building society head office and told me for them to investigate it will cost them £500 so it feels like they are trying to pay me off cheap for their mistake.

    It doesn't cost them £500 unless you take it to the FOS. However, if it is a goodwill gesture, they can withdraw the offer if you do that. Plus, the FOS could consider your referral to them as frivolous and decide not to charge the lender the FOS fee.
    they have agreed they were in the wrong in offering me a product I wasn't entitled to.

    You were not offered a product you were not entitled to. It was identified late in the process that it was not suitable for you to proceed on that product. It should have been identified earlier. You were inconvenienced by the length of time it took and it shouldnt have taken that long. That is what the redress was far. You were not mis-sold.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
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    If it is the mortgage that you currently are on, don't you know when your fixed rate is ending?


    As much responsibility lies with you as well, ensuring you can switch and whether paying the ERC is worth it with the new deal.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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