Possible negligence from my mortgage broker

RyanWills94

haras_n0sirrah said:

The mortgage interest is the same as the rent - dead money. Only the repayment element is investing in the property. That may be £50 a month at the beginning if there is a long mortgage term
How much would the top up mortgage have been and what rate compared to the monthly rent
If the property has gone down in value it would now be cheaper to buy the remainder than it would have been at the time. 

Property has gone up, had a survey done on the property. There’s too many variables, the fact is, it’s a missed opportunity due to his incompetence and that must be worth something. We will now continue to pay rent and service charge etc, whilst remaining in a shared ownership product which interest rates are sky high, currently 3.79% and we don’t know how long we will be in this predicament for.

SpiderLegs

RyanWills94 said:

MWT said:

haras_n0sirrah said:

what were the rates on offer at that time?
What is the difference between the monthly interest that would have been the new part of the mortgage and the rent (you can't claim the whole rent as you would have been paying the mortgage)
How has the price changed in the meantime?
The idea would be to put you in the same position e.g.

So for example the house value is 200k. You wanted to buy the other 50% so 100k. Your mortgage would have been 3.99% so interest of £332 a month. Your rent was £229 a month so you are up £2472 on the monthly payments
however the house has gone up 10k in 2 years. 50% of 10k is 5k - £2472 on lower payments = £2528
Has the house gone down in value then you may not be due any compensation as your savings may outweigh the missed opportunity costs
You can't claim for the deposit for the rest of the house - the advisor had no way of knowing a pandemic would mean 5% deposit rates would disappear - no one knew that. 

That looks about right to me.

Can't expect to claim consequential losses for the change in lending terms so the change in deposit isn't relevant as explained above.

I’m not asking for that. The change in LTV could not have been predicted, but it’s unfortunate now that’s happened. There was a window of opportunity I missed investing in my future! Theres no figure I can put on this, we’ve paid rent which is dead money, if we bought the rest of the house, i would be gaining more capital. Now, will I ever purchase the rest of the house? The house price will probably keep increasing, which means the deposit will keep increasing, which means I will continue to pay rent moving forward until hopefully we can afford to purchase the rest, all of this could have been avoided if the mortgage advisor did not provide not only poor advice, but incorrect information. 

Endlessly repeating yourself while not providing any actual numbers is not going to move this forward at all. 

how much is the rent?
How much was the increased mortgage?
How much do you want?

MWT

RyanWills94 said:

...the fact is, it’s a missed opportunity due to his incompetence and that must be worth something.

You've already set a limit on that value of around £2,300 when you decided not to proceed in the belief that your ERC would have been that much, if you felt the opportunity was worth a lot more you would have proceeded anyway...

Problem remains that the most upsetting aspects of this were not reasonably foreseeable consequences of waiting, so not something you are going to be compensated for.

You don't have to name a figure of course, just let them make you an offer, but this still feels like you are going to have problems accepting that the real cost of your delay is never going to be compensated adequately.

payless

Clearly openwork will take a view on the hassle/ cost / potential claim...
if I look at the bits though...
broker arranged a mortgage that had a ERP listed in all documentation,  so suggested  it was better to wait until the end of penalty period. He may not be deemed liable for any later relaxation in that situation as at that time ( your contract at this point was with the lender.. did you ask them at this point) , indeed it is possible he was not providing regulated advice. (were any terms of engagement agreed at this point) .
Future changes in house values ( not a regulated element.. if he strongly recommended your followed this course, and then house prices fell would you have a claim? ) , your and global circumstances were not foreseeable and likely not part of any initial terms of engagement. 

(  NOTE openwork if you rely on this information without agreeing and paying my hourly rate, then you cannot rely on my comments as advice , and thus I accept no liability against any losses occurred upon said reliance) 

monetxchange

I know you've decided that you can use the voice recordings as evidence in court, but as previously advised, you'll have an uphill battle to get them admitted in to the proceedings if they were recorded without the other side's consent and knowledge. Court is not just a free for all where you call the shots and decide what is and isn't applicable. 

[Deleted User]

monetxchange said:

I know you've decided that you can use the voice recordings as evidence in court, but as previously advised, you'll have an uphill battle to get them admitted in to the proceedings if they were recorded without the other side's consent and knowledge. Court is not just a free for all where you call the shots and decide what is and isn't applicable. 

voice recordings can be used to confirm your version of events without permission from the other party.  There wont be any issues with this part

RyanWills94

All figures of losses have been sent, can’t forecast what we would lose moving forward, far too many variables as I have agreed with everyone, complaints handler will investigate, the mortgage broker thankfully has owned up to his mistakes which surely is a good thing? 

RyanWills94

payless said:

Clearly openwork will take a view on the hassle/ cost / potential claim...
if I look at the bits though...
broker arranged a mortgage that had a ERP listed in all documentation,  so suggested  it was better to wait until the end of penalty period. He may not be deemed liable for any later relaxation in that situation as at that time ( your contract at this point was with the lender.. did you ask them at this point) , indeed it is possible he was not providing regulated advice. (were any terms of engagement agreed at this point) .
Future changes in house values ( not a regulated element.. if he strongly recommended your followed this course, and then house prices fell would you have a claim? ) , your and global circumstances were not foreseeable and likely not part of any initial terms of engagement. 

(  NOTE openwork if you rely on this information without agreeing and paying my hourly rate, then you cannot rely on my comments as advice , and thus I accept no liability against any losses occurred upon said reliance) 

There was no relaxation of that. Under the affordable housing scheme there was never any early repayment charges and it’s something that the broker should know, I asked a second broker without telling him the situation and even he knew. I understand the broker did not know the LTV will change but that’s just unfortunate and it wouldn’t have ever been a problem if he advised me correctly

haras_n0sirrah

RyanWills94 said:

payless said:

Clearly openwork will take a view on the hassle/ cost / potential claim...
if I look at the bits though...
broker arranged a mortgage that had a ERP listed in all documentation,  so suggested  it was better to wait until the end of penalty period. He may not be deemed liable for any later relaxation in that situation as at that time ( your contract at this point was with the lender.. did you ask them at this point) , indeed it is possible he was not providing regulated advice. (were any terms of engagement agreed at this point) .
Future changes in house values ( not a regulated element.. if he strongly recommended your followed this course, and then house prices fell would you have a claim? ) , your and global circumstances were not foreseeable and likely not part of any initial terms of engagement. 

(  NOTE openwork if you rely on this information without agreeing and paying my hourly rate, then you cannot rely on my comments as advice , and thus I accept no liability against any losses occurred upon said reliance) 

There was no relaxation of that. Under the affordable housing scheme there was never any early repayment charges and it’s something that the broker should know, I asked a second broker without telling him the situation and even he knew. I understand the broker did not know the LTV will change but that’s just unfortunate and it wouldn’t have ever been a problem if he advised me correctly

Leeds do have erc's on their affordable housing products. 

RyanWills94

haras_n0sirrah said:

RyanWills94 said:

payless said:

Clearly openwork will take a view on the hassle/ cost / potential claim...
if I look at the bits though...
broker arranged a mortgage that had a ERP listed in all documentation,  so suggested  it was better to wait until the end of penalty period. He may not be deemed liable for any later relaxation in that situation as at that time ( your contract at this point was with the lender.. did you ask them at this point) , indeed it is possible he was not providing regulated advice. (were any terms of engagement agreed at this point) .
Future changes in house values ( not a regulated element.. if he strongly recommended your followed this course, and then house prices fell would you have a claim? ) , your and global circumstances were not foreseeable and likely not part of any initial terms of engagement. 

(  NOTE openwork if you rely on this information without agreeing and paying my hourly rate, then you cannot rely on my comments as advice , and thus I accept no liability against any losses occurred upon said reliance) 

There was no relaxation of that. Under the affordable housing scheme there was never any early repayment charges and it’s something that the broker should know, I asked a second broker without telling him the situation and even he knew. I understand the broker did not know the LTV will change but that’s just unfortunate and it wouldn’t have ever been a problem if he advised me correctly

Leeds do have erc's on their affordable housing products. 

Not if you’re purchasing the property in full. Ring if you think wrong, I literally have a signed letter from Leeds which I’ve provided within the complaint. Only time there would be ERC if you’re staircasing and changing to another shared ownership product, or if you are moving to another lender or redeeming the mortgage product in full.