Mortgage benefits changed after offer accepted

Brodiebobs

Saw a broker about a remortgage.

We were offered a deal with free legals, and cashback, but after the valuation came back slightly under what we needed, it was re-offered on a different deal with same lender which we were happy with. Broker told me verbally the free legals would still stand and the cashback is shown on the revised illustration they sent so we instructed them to proceed.

4 days later the broker has sent me an e-mail stating that between the two mortgages being offered the companies deals had changed and they no longer offer free legal... but as a 'goodwill gesture' because the solicitor had already started the work believing it was free they would honor this. However because of this they wont be offering the cashback.

Its not a deal breaker by any means as we think we have got a great deal which is reducing our term considerably, but £500 is a lot of money to us and out of principle I don't think we should just walk away without challenging it!

My belief is that any offer we accept is legally binding? if the mortgage company of the broker made an error in producing the illustration then they would have to honor it?

amnblog

When you say offered a deal. You don't mean you have ever had a formal mortgage offer do you? We are talking about figures provided prior to application.

Is this a Nationwide deal?

Brodiebobs

It was an illustration/key facts information from the broker, but we signed all the documentation to accept it on the illustrated basis.

Not Nationwide no...

amnblog

Key Facts are not an offer and Lender's can and do change products without notice.

Most Lenders require full application submission to 'book' the product.

Brodiebobs

What is classed as a full application?

We signed documents accepting the offer, a direct debit mandate and solicitors documents. This was on the first offer, but then the valuation came back lower so a second offer was issued.

I haven't had to sign anything else but the solicitors advised on 21st July we will complete in two weeks, and confirmation of compeltion will follow.

amnblog

Did your document headed 'Mortgage Offer', not match your Key Features Illustration?

Brodiebobs

yes but it was the first offer... at the lower rate.

After the valuation came back lower another illustration was provided but i was told nothing else needed doing it was for information only.

we haven't had to sign anything else and the solicitor and the broker have both advised its all in progress until the update e-mail i received.

I've actually just received an e-mail from the solicitor with a completion date of next Thursday, & settlement figure from existing provider.