Mortgage Illustration and Offer discrepancy

confusedftb

Hi All,

I have just noticed that the mortgage illustration i received from my broker and the mortgage offer i received from the lender are slightly different.

I have contacted the broker and waiting to hear back from them.

Has anyone else faced the same situation? and what happens in this case?

the illustration was slightly cheaper than the offer, 0.1% but thats ££££'s

worried :huh:

ACG

See what your broker says.
Was there a gap between the illustration and the application?

You should know which product you are applying for, it either means he has chosen the wrong product (can be easily done on natwest site for example) or the product had been pulled between providing the illustration and making the application.

confusedftb

ACG wrote: »

See what your broker says.
Was there a gap between the illustration and the application?

You should know which product you are applying for, it either means he has chosen the wrong product (can be easily done on natwest site for example) or the product had been pulled between providing the illustration and making the application.

there wasn't a lot of time difference. it was a week or 10 days at the most.

i have got in touch with the broker and waiting for them to respond. i was applying for the product on the illustration, not the one which i got in offer. the difference one might say is just 0.1% APRC but its £1000+ on overall cost.

Hoping that this gets sorted out really soon. Anyone has had this experience before?

What can i do if the broker does not seem helpful?

confusedftb

Update:

so i have been told that as long as the

fixed fee rate and the remaining rate remains same the APRC does not matter.

the offer does have the same rate as per illustration, its just the APRC which changed but i am told that the APRC changes all the time.

ACG

Ah. APRC is something that calculates the cost of the 20-30 year term. Realistically you are not going to keep your mortgage for that period without switching lenders/products. Your SVR rate also wont remain at the rate given for the remaining 15-25 years after your initial deal finishes.

If the initial rate/fees are the same and you plan on switching product or lender at the end of the deal then you do not need to worry too much about APRC.

Good to see you have read your offer and illustration though, I dont think I have met more than a handful of people 7 years or so who have.

confusedftb

ACG wrote: »

Ah. APRC is something that calculates the cost of the 20-30 year term. Realistically you are not going to keep your mortgage for that period without switching lenders/products. Your SVR rate also wont remain at the rate given for the remaining 15-25 years after your initial deal finishes.

If the initial rate/fees are the same and you plan on switching product or lender at the end of the deal then you do not need to worry too much about APRC.

Good to see you have read your offer and illustration though, I dont think I have met more than a handful of people 7 years or so who have.

thanks for the clarification. got the same response from the broker so its nothing to worry about. in any case i will be overpaying and switching products to take best offer. thank you

and yes i did read all the documents very carefully because small things matter if left unnoticed. just like this, would have costed me £xxxx if i did not act on it

:T

kingstreet

The illustration would have an assumed payment date each month and presumably you chose an actual payment date at application stage for the offer? This can affect the APRC, which as ACG alludes to, is about as much use as the proverbial chocolate fireguard as a means of comparison on such long-term borrowing.