Financial Advisor and Mortgage Broker Negligence - can I claim compensation?

bt185306

Our mortgage broker made a miscalculation on the affordability assessment on a shared ownership property that will either incur in a mortgage extension of 8 years or an additional £20,000 added to the down payment.

This was only mentioned to us after the mortgage was approved by the lender during the completion process, as the seller questioned the affordability assessment. 

While we do have the savings to bump up the down payment, this was a safety net for expanding our family, so  we agreed to the mortgage extension and are waiting to hear a confirmation from the lender. However, as this is taking a considerable amount of extra time to completion and, if approved, we will have to pay additional interest to the bank, we were wondering if we could sue for compensation claims even though we accepted the extension, as we really want this property? If so, would we be able to claim this compensation after the completion of the purchase is done? As we don't want to delay the purchase any longer. 

Has anyone had a similar situation?    

sofsar

I’m annoyed with my broker who works at estate agents! He recommended me with a bank who doesn’t accept self employed grant! I’m depressed now and it feels awful. Obviously Iv had to apply again with someone else 

[Deleted User]

No.                

If you don't want to take the product on offer, just decline it.

[Deleted User]

In theory you can claim for any costs you incurred that wouldnt have been paid if you had known from the start and decided not to proceed.  
If you have now made the decision to proceed even with the error then all the costs would have been payable regardless.  

You haven't lost money on the mortgage as you have paid the fees you would have been paying anyway and you have made the decision to move forward now.  

Best case would be an inconvenience payment but realistically if you did get anything then £100 at most would be my expectation

dunstonh

 we were wondering if we could sue for compensation claims even though we accepted the extension, as we really want this property?

It is unlikely that using the courts would result in a positive outcome as you could have withdrawn without the costs once you were aware.      The regulated complaints process may well consider the same as you are not technically out of pocket but in the position you would always have been in.

Redress tends to be payable when an error creates a loss that could have been avoided with an alternative meeting the objective.     This could not be avoided and there was no alternative apart from withdrawing.  As you don't want to withdraw, you are responsible for the extra costs.

Bet here is a goodwill gesture of £50-100 for inconvenience.

haras_n0sirrah

You could go for the longer term and set up a montly standing order to overpay to pay what you would have paid on the original shorter term