Remortgage issue

Scuf

Hello everyone,

I am in the process of remortgaging with Santander, but after 5 months from receiving the offer and after so much paperwork I have sent and I have paid for all the fees,my solicitors is telling me that the offer wasn't available for me, because my application was for a Shared Ownership and Santander dind't know that.That offer was only for normal residential. My question is : how can Santander issue an offer without knowing that. Before they sent the offer to me, I had to fill in an online form and there was a section regarding this e.g. ( who is the Shared ownership, how much I own of the property). This is very weird. And now, basically, I have to accept another offer with a bigger rate.

What should I do? Someone done a mistake down the line and I have to pay for that and is not fair!

Any advice would help.

Thank you!

jamielutz1987

@scuf Is this through a broker or direct? If through a broker then you should raise a formal complaint in the first instance.

If you went direct, was it a non-advised application (where you just select a product and get on with an online application) or did you get advice from a Santander mortgage adviser who recommended this product to you?

In any event, if you want to try recover any additional costs incurred, the first step would be to quantify your loss (extra interest paid on SVR for example) and then file a formal complaint with the broker/Santander asking that you be made whole as a remedy. I don't have an opinion on what your chances of success may be, that would need more information.

Scuf

It's through a broker. He presented this offer and I accepted, I paid him ...and then Santander came in with all the forms to fill in and then Santander sent me the official offer.
Where should I complaint? to Santander or to my broker.
I called Santander to ask what is happening, but they said that I should speak with my broker as he has all in information. I emailed my broker few times to send me the information from Santander, I want to see, black on white , what Santander said.

jamielutz1987

@scuf

Are you sure this is what happened? "It's through a broker. He presented this offer and I accepted, I paid him ...and then Santander came in with all the forms to fill in....." If you went through a broker, it's usually them that fills in the application form, etc on your behalf. I never used Santander so don't know if it's any different for them. I've never had to fill in the lender forms myself when I've had a mortgage or remortgage done through a broker.

If you went through a broker, he gave you advice+recommendation and the product turned out to be unsuitable costing you money, it's definitely the broker you should complain to.

Don't play email ping-pong, lodge a formal complaint and make it clear that you will take it to the FOS if they don't present a remedy. The complaints process should be on their website or part of the standard communication sent to your during the broking process. If it's a large broker with a managed Trustpilot page, also leave them a 1-star review, that usually gets you some attention.

Scuf

I have just call Santander and I have asked if the offer was valid for a Shared Ownership and they said YES. They knew ! So I guess my Broker is lying to me.
Also, Santander said that they requested more information on 18th June but the information hasn't been sent in time by my Broker and the application will have to be resubmitted now.I think the offer is not available anymore after this time and the rate and increased. 
I will make a complaint to my Broker, but what should I ask for? I can't get the same offer anymore!

jamielutz1987

@Scuf

In your place, I would ask for the following -

- the remortgage to be rebroked and applied for asap so you aren't sitting on SVR for an unnecessarily long time.

- secondly, try to quantify any extra costs that have been incurred due to the broker's mistakes or unreasonable delays and ask for that as compensation to make you whole.

- if you have paid a broker fee I'd ask for a refund of that as well

In your complaint, do make it clear that you will take your complaint to the FOS if they don't provide a satisfactory remedy.

You may or may not get everything you ask for, but I would start off with this.

Scuf

This is the response that came back after my complaint

The information we received from Santander was over the telephone and they informed us of the following on the 18/06

They have looked at the case now and it's now making sense. They have been advised by solicitor that's it's 40% Shared Ownership. So the loan is 73% of the share. They need a product that allows a LTV of 73%.

The property is £240000 and I borrow £70000.

Is that statement true?

jamielutz1987

@scuf Hope I'm getting this right -
Property price 240k
You're buying a 40% share worth 96k
You have a deposit of 26k and borrowing 70k (which is 73% LTV)

I assume this is the information that you went to the broker with?

Did the broker not recommend and apply for a 75% LTV mortgage?

Btw, good to see that they finally responded!

jamielutz1987

I don't know how shared ownership mortgages work exactly, hopefully someone like @haras_n0sirrah could give an opinion on what might have happened here.

Scuf

jamielutz1987 said:

@scuf Hope I'm getting this right -
Property price 240k
You're buying a 40% share worth 96k
You have a deposit of 26k and borrowing 70k (which is 73% LTV)

I assume this is the information that you went to the broker with?

Did the broker not recommend and apply for a 75% LTV mortgage?

Btw, good to see that they finally responded!

I already have 40% , I had a fixed rate for 3 years with Nationwide,  now I am trying to remortgage with Santander. I am not buying extra shares. 
I bought it with 96K , paid for 3 years. I have 70k left to pay now.

See attached photos from the offer.

jamielutz1987

@scuf Sorry I mistyped, it's a remo and not a purchase.
My question is, what product did the broker recommend? Was it a 75% LTV product or not?
(It should be on your email).