Mis-Sold Mortgage

mwinlow

Hi,

I have recently applied on-line for a new mortgage as my existing one expires on the last day of May 2017 - with the same company, Nationwide. Having found a product that appeared suitable on line, I rang Nationwide to confirm it was suitable as I am about to sell the property and rent and obviously did not want to pick a product that had an early redemption fee. I then went abroad for a few days and on my return found correspondence relating to the new mortgage. On reading it today I have discovered that the new mortgage *has* an early redemption clause which will result in a fee of about £4k. Needless to say I was not happy and rang Nationwide to cancel the new mortgage intending to try again with a suitable one. Their representative stated that I can cancel the new mortgage but only after paying the first months payment of the standard variable rate, some £670. The monthly fee for the new mortgage was supposed to be about £270.

Are Nationwide correct that there is no 'cooling off' period for new mortgages?

Is there no way of seeking redress against them for effectively miss-selling me a mortgage?

I could understand their position if I had left this until the new mortgage had started but I still have more than 2 weeks of the old one to run.

Regards, Martin Winlow.

dunstonh

Are Nationwide correct that there is no 'cooling off' period for new mortgages?

yes.

You are sent a contract to sign and return. The contract sets out in plain easy language all the costs and tie ins.

Is there no way of seeking redress against them for effectively miss-selling me a mortgage?

They didnt mis-sell it. You applied online and then signed the contract. Unless you have a recording of the telephone call you are not going to get anywhere.

David_White

mwinlow wrote: »

I have recently applied on-line

You have received no advice therefore can't really say you've been mis-sold.

Did you specifically ask them on the phone "does this product have an early redemption fee" and if you did was their answer "no"?

minimike2

The online process would have involved presenting you with all the information about the product, including a key facts illustration, which will have told you about the ERC.

Did you not read this?

Also, if you didn't choose a new rate and left it to on onto SVR, you would have paid that amount anyway? If there is no other product with no ERC then you would be no worse off, as I presume you would leave it on the SVR (I don't know if this is the case or not - you would need to check).

robatwork

Not sure if Nationwide are the same as the others that I have spoken to, but I think this depends on if you had advice or just chose yourself.

For example I called one company, let's call them Coventry for the sake of argument. They took me through lots of questions about myself, then an affordability check, THEN a different person - an advisor. She asked questions and then advised a particular mortgage to meet my needs. Just one. I had as it happened already mentioned ERCs and this one didn't have them - was one of my requirements.

I then called another company - let's call then HSBC. Similar affordability questions but then when asked if I wanted advice I declined as I knew the product I wanted. I was told to apply online.

If your conversation was the former then you have grounds for complaint, and they will have a recording.

If the latter or similar it's your mistake

csgohan4

robatwork wrote: »

Not sure if Nationwide are the same as the others that I have spoken to, but I think this depends on if you had advice or just chose yourself.

For example I called one company, let's call them Coventry for the sake of argument. They took me through lots of questions about myself, then an affordability check, THEN a different person - an advisor. She asked questions and then advised a particular mortgage to meet my needs. Just one. I had as it happened already mentioned ERCs and this one didn't have them - was one of my requirements.

I then called another company - let's call then HSBC. Similar affordability questions but then when asked if I wanted advice I declined as I knew the product I wanted. I was told to apply online.

If your conversation was the former then you have grounds for complaint, and they will have a recording.

If the latter or similar it's your mistake

Op still signed the contract clearly documenting the charges and fees. Whether they are mentioned or not in the phone call is irrelevant. You cannot expect the call handler to mention every single T+C on the contract.