Possible negligence from my mortgage broker

RyanWills94

ftbhopes said:

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Do you think you’d still be consulting a solicitor if you had to pay for one?

Well yeah of course. He’s impeded me bettering my finances, I lose rent, I wouldn’t lose what I put in to my property? It’s a financial gain rather than a financial loss. 

RyanWills94

dunstonh said:

Complaint rulings are pretty clear.   You get compensation when advice is wrong but only to put you in the position that recovers the loss.    There has been no loss in this case (that I can see but I have speed read the 4 pages and may have missed something).   You are in the same position you were before the error.
The issue is that you have missed out hypothetically and you do not get compensated for hypothetical situations.   In scenarios like this you typically see a goodwill gesture of up to £500 being offered and they are not required to pay any fees you incur through the use of third party claims companies or solicitors as the process is free of charge to use.
So, you need to be wary that you do not start incurring fees from a third party as you could end up paying more than you get back;

Also, it is unclear whether you had regulated advice or just a casual discussion.  A casual discussion where all the facts are not known or unavailable at the time does not mean the same as advice.  Did you actually go through an advice process or was it just a chat on the phone? 

Went through the full advice with my broker. The financial loss is the fact that we could of purchased the rest of the share, we would have 100% been accepted based on our finances and credit history is faultless and we met the criteria. We’ve been paying rent continuously on the other half of the property, we wouldn’t of had to if the broker provided us the with the correct advice, the mortgage payments would have been higher but that benefits us as it’s investing for our future. 

RyanWills94

I work in finance. If I’m putting a lending application through, and don’t explain the rate appeal process, I’ve not given my client the opportunity to see if it would be accepted and it’s an unfair outcome for the client, if it was accepted it could save my client money, it’s catch 22, the customer in that case would receive compensation equivalent to the lowest rate we offer and then difference over the length of the loan. Same rules apply in this scenario, it’s an unfair outcome for me. 

noitsnotme

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Why on earth did you bother asking for advice here if you have someone you trust implicitly who has given you the answers you want?  Did you think a bunch of strangers on the internet would know more than your family member?  Or maybe you didn’t 100% trust your family members opinion?

You don’t need to convince anyone here.

[Deleted User]

RyanWills94 said:

ftbhopes said:

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Do you think you’d still be consulting a solicitor if you had to pay for one?

Well yeah of course. He’s impeded me bettering my finances, I lose rent, I wouldn’t lose what I put in to my property? It’s a financial gain rather than a financial loss. 

Quantitively, what is the difference?

RyanWills94

noitsnotme said:

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Why on earth did you bother asking for advice here if you have someone you trust implicitly who has given you the answers you want?  Did you think a bunch of strangers on the internet would know more than your family member?  Or maybe you didn’t 100% trust your family members opinion?

You don’t need to convince anyone here.

noitsnotme said:

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Why on earth did you bother asking for advice here if you have someone you trust implicitly who has given you the answers you want?  Did you think a bunch of strangers on the internet would know more than your family member?  Or maybe you didn’t 100% trust your family members opinion?

You don’t need to convince anyone here.

noitsnotme said:

RyanWills94 said:

Fortunately my solicitor is a family member so he wouldn’t charge me a penny, I have nothing to lose at this point, he was regulated with a firm at the time and they will be liable.

Why on earth did you bother asking for advice here if you have someone you trust implicitly who has given you the answers you want?  Did you think a bunch of strangers on the internet would know more than your family member?  Or maybe you didn’t 100% trust your family members opinion?

You don’t need to convince anyone here.

Good to hear other people’s points, maybe someone’s had something quite similar, always good to hear other people’s views if they’ve been through something similar, more than one views better than 1 or none! 

amnblog

LBS would not have lent you 95% of the value. They will only lend to 90% of the assessed value when you are buying further equity. If you needed 95% LBS would not have done it.

ACG

amnblog said:

LBS would not have lent you 95% of the value. They will only lend to 90% of the assessed value when you are buying further equity. If you needed 95% LBS would not have done it.

I was erring on the side the broker has messed up and I thought they would be liable to some extent, but probably not what you were expecting/hoping for. 

But if amn' post is correct then I think they are only liable for suggesting you wait until the ERC period is up. Nobody could have foreseen the world going to pot last year and so I cant see how they would be on the hook for anything as they were trying to save you money. It does not appear to be bad advice, just unfortunate timing. 

SaintJudy

Have you been back and read your mortgage paperwork since and confirmed this? Or are you taking the person on the phone's word for it? 

kingstreet

This seems to boil down to one simple question. Would Leeds provide further borrowing upto 95% to enable the OP to staircase upto 100% ownership? If they would, the broker is at fault for not establishing this. If Leeds wouldn't do this and the broker suggested waiting until the ERC ends to then investigate the route of a remortgage to a new lender the "advice" provided appears sound.