Was i miss-sold?

Thrugelmir

rjbell78 wrote: »

Yes i'm on the deal with their £172k valuation but weeks after they say its worth £250k.

More than likely an upgrade to their systems and the information provided. Your mortgage product offers would have been based on a desktop indexed valuation. As that's the method that has been used for some years. Indexed valuations are somewhat subjective. Given the level you've reached LTV wise, i.e. under 60%. Little point in asking for a formal valuation which will cost you money.

getmore4less

You missed off the important information to determine if you bought the wrong product.


Rate and fees.

Amount and term useful as well

Did you check intermediaries rate?
Some lenders offer better rates to brokers even on simple product switch.

rjbell78

charlie792 wrote: »

are you totally sure the rate you've been offered isn't based on the 40% LTV?

When I switched product rates with NatWest two years ago that's what happened.
House was originally valued at £135k and 80% LTV and at end of deal I applied for new deal. The rate I got was a recalculated LTV based on a indexed valuation of £154k (I didn't ask for that they just did automatically)

Yes, I'm sure. I was on a 2 yr fixed then another 2 yr fixed and now a 5 yr fixed. So when i took the current offer it was 4 yrs on from the first mortgage and first and only valuation. They've always used the original 4yr olf valuation.

rjbell78

getmore4less wrote: »

You missed off the important information to determine if you bought the rong product.


Rate and fees.

Amount and term useful as well

Did you check intermediaries rate?
Some lenders offer better rates to brokers even on simple product switch.

No i didn't check with anyone else.

the fixed rate started 30/4/2018 for 5 year fixed a 2.73% on a loan to value of 75% LTV valuation £172,000 loan duration 26yr.

Their own index valuation on my account shows £256k. This figure wasn't visible when i took the deal. It appeared weeks later.

haras_nosirrah

Anyone else reading this- Natwest is one lender where brokers get cheaper product switch rates than going direct so if you are will Natwest and your rate comes up consult a broker who can check the whole market and compare it to the intermediary product Natwest offer.

getmore4less

rjbell78 wrote: »

No i didn't check with anyone else.

the fixed rate started 30/4/2018 for 5 year fixed a 2.73% on a loan to value of 75% LTV valuation £172,000 loan duration 26yr.

Their own index valuation on my account shows £256k. This figure wasn't visible when i took the deal. It appeared weeks later.

next time check the intermediaries site

I don't have the data for April 2018 but rates have not moved that much in the last 2 years

base rates went up 0.25 so factor that into the current rates against yours.

a broker probably has the download for that period and could look them up.

still not said what mortgage size is and the LTV rate has changed between 70% and 75% in different posts
guess at loan size
£172k 75% £129k
£172k 70% £120k

for the 40% something ish
£256k 50% £128k
£256k 40% £102k

looks to be between £100k-£130k my guess is £125k


natwest current product transfer rates on 5y fix(intermediaries).
LTV..£995...nofee
60% 1.67% 2.07%
70% 1.76% 2.96%
75% 1.76% 2.98%

can't check the retail rates without an account.
for remortgage the rates shown are
60% 1.59% 2.97%


Now with a rate of 2.73% looks like you may have taken a no fee option
(with 0.25% added makes it close to the current 75% rate

on the broker rates the break even mortgage fee no fee on a 28y term is £56k well below what it looks like yours is.

Did you check the fee no fee for your mortgage.

look at the difference for that 60% LTV on £125k over 28 years after 5years

1 £125,995.00 1.67% £490.51 left at Y5 £106,287.65
2 £125,000.00 2.07% £490.51 left at Y5 £107,639.22

Even with the fee it saves £1,300.

rjbell78

getmore4less wrote: »

next time check the intermediaries site

I don't have the data for April 2018 but rates have not moved that much in the last 2 years

base rates went up 0.25 so factor that into the current rates against yours.

a broker probably has the download for that period and could look them up.

still not said what mortgage size is and the LTV rate has changed between 70% and 75% in different posts
guess at loan size
£172k 75% £129k
£172k 70% £120k

for the 40% something ish
£256k 50% £128k
£256k 40% £102k

looks to be between £100k-£130k my guess is £125k


natwest current product transfer rates on 5y fix(intermediaries).
LTV..£995...nofee
60% 1.67% 2.07%
70% 1.76% 2.96%
75% 1.76% 2.98%

can't check the retail rates without an account.
for remortgage the rates shown are
60% 1.59% 2.97%


Now with a rate of 2.73% looks like you may have taken a no fee option
(with 0.25% added makes it close to the current 75% rate

on the broker rates the break even mortgage fee no fee on a 28y term is £56k well below what it looks like yours is.

Did you check the fee no fee for your mortgage.

look at the difference for that 60% LTV on £125k over 28 years after 5years

1 £125,995.00 1.67% £490.51 left at Y5 £106,287.65
2 £125,000.00 2.07% £490.51 left at Y5 £107,639.22

Even with the fee it saves £1,300.

Thank you for taking the time to answer so detailed.

The loan amount £126,729

No, i paid a fee of £995 I paid this upfront and was not added to the mortgage.

ACG

No lenders have 40% deals, I think the lowest natwest deal is 60%.
The difference between a 60% and 70% product will not be significant.

However, no you were not miss sold. They told you what valuation they had at that point in time. You had the option to agree or disagree and if you disagreed then you could have followed their process to have it re-assessed. I am not sure what that process is btw, but presumably they have one.

Their system has improved over time like all IT systems. They were not holding off until you had tied in to a new deal, they have people coming to the end of their deal every month.

It is just bad timing.

rjbell78

ACG wrote: »

No lenders have 40% deals, I think the lowest natwest deal is 60%.
The difference between a 60% and 70% product will not be significant.

However, no you were not miss sold. They told you what valuation they had at that point in time. You had the option to agree or disagree and if you disagreed then you could have followed their process to have it re-assessed. I am not sure what that process is btw, but presumably they have one.

Their system has improved over time like all IT systems. They were not holding off until you had tied in to a new deal, they have people coming to the end of their deal every month.

It is just bad timing.

I didn't mean that website held off giving me the index value until i was tied in. Just that before giving us this information their system would have had these valuations. So why have they valued mine the same as 4 years prior? Because i was not changing lender i thought this was just the way it was done but now i've come to the realisation it is not.

getmore4less

rjbell78 wrote: »

Thank you for taking the time to answer so detailed.

The loan amount £126,729

No, i paid a fee of £995 I paid this upfront and was not added to the mortgage.

There is something well wrong there if you have a rate of 2.73% and paid a £995 fee.

I would have expected a rate between 1.5% and 2% for any fee based product at 75% LTV