miss-advised about fee on mortgage

aly

I have my mortgage with c&g sold through lloydstsb. I contacted lloyds tsb 4 weeks ago about a better deal on my mortgag, I was paying some off and reducing the term. I advised I did not want to pay any fees for the new deal. The financial advisor at Lloyds tsb recommended a tracker that was 0.75% below the base rate she also advised there were no set up fees for existing customers so I agreed to change over the mortgage I also reduced the term by 5 years as I could afford to pay an extra £50 p/m to reduce the term by 5years. I have now received a phone call from C&G advsising that there is a fee of £1500 for this new deal! She has spoken to the branch of tsb and the FA has advised she was unaware there was a fee. Whatare my rights can I insist on the new deal with tsb paying the fee or is it just a bit of bad luck on my part?
I need to write a letter of complaint to the manager of the tsb and would appreciate any advise on how to persue this.

Thanks a miffed tsb customer!!!

brightbuy

It really depends on what fees you are referring to? Did you visit the branch or do everything by phone?

If you made a visit to the branch she would have given you an IDD document to disclose any broker fees. You should have also received an illustration which would have explained in detail what other fees are involved in pursuing the loan such as an arrangement fee which i think is what you are referring to by the sounds of it. This should have been explained to you and you should have a copy of the illustration.

At what stage are you at? The bank will most likely protect itself by explaining that you were presented with all the facts at the start.

aly

Thanks for your comments, I visited the branch the advisor told me there were no fees! that was the reason for me taking up the offer. I did not receive anything from the branch she advised it would all be sent out from C&G so unfortunately I do not have anything in writing from them, just some handwritten figures that the advisor put on one of my mortgage letters. I signed some paperwork in the branch then she sent the request to c&G they would then send out a new contract for both myself and husband to sign.

dunstonh

It sounds like the branch just acted as a post box and passed the information direct to C&G to deal with. This could be due to where you arranged the C&G mortgage in the first place (i.e. Lloyds may not be able to access C&G branch or C&G Direct arranged versions)

C&G have then sent out the offer letter but with that should also be the key features illustration.

As the "error" has been found before any financial loss has taken place then you have no right to any money and C&G have no obligation to offer you that particular deal without a fee being paid. I think they would offer you any of the deals they have available as alternatives.

Dan_Collins_2

C&G have products with and without fee's, I would now go direct to them rather than via TSB. You can phone them or look online at:

http://www.cheltglos.co.uk/mortgages.html

I think it is TSB that got it wrong not C&G, the .76% below tracker has a 2.5% fee, you will not find a rate as low as that without a big fee.

You can click the existing client bit and follow it through to the products.

Good luck