Mis sold mortgage

Harrietdan

Just wondered whether anyone help with the situation we are in,  basically we agreed a mortgage through a broker for 12year term at £1500pm  . Unbeknown to us the lender informed the broker that they were only prepared to accept it on a 9year term at £2000 pm. The broker never informed us until the mortgage was completed,  they have accepted blame and trying to sort without any success as we speak,  they have already paid us the difference between the 2 mortgages, with regards to the monthly payments which are now going out of our account.  Any help would be appreciated. 

[Deleted User]

If they're paying you the difference, that's a great result. You're getting a free £500 overpayment.

Enjoy it until they rewrite the mortgage, because then you'll be paying the whole mortgage yourself.

dunstonh

they have already paid us the difference between the 2 mortgages, with regards to the monthly payments which are now going out of our account.  

That sounds like a fantastic result.  You actually sound quite lucky in that respect.

 Any help would be appreciated. 

What do you need help on?

K_S

Harrietdan said:

Just wondered whether anyone help with the situation we are in,  basically we agreed a mortgage through a broker for 12year term at £1500pm  . Unbeknown to us the lender informed the broker that they were only prepared to accept it on a 9year term at £2000 pm. The broker never informed us until the mortgage was completed,  they have accepted blame and trying to sort without any success as we speak,  they have already paid us the difference between the 2 mortgages, with regards to the monthly payments which are now going out of our account.  Any help would be appreciated. 

@harrietdan It looks like the broker has accepted their mistake. When you say they "paid us the difference", do you mean £500 times the length of the fixed period? Is it a 2 year or 5 year fix?

Have they said what happens at the end of the current fix?

Harrietdan

Hi, no they have paid the difference while they try and sort it out,  I am just trying to find out what happens in the future, are they liable to continue to pay the difference, they have offered us £7000 to keep the mortgage but that only covers approximately 14 months of the difference between what we agreed to pay ie £1500  as apposed to £2000. So after that we would  be paying an extra £500 pm until the end of the term.

K_S

@harrietdan They will be working hard to solve this, probably trying to find a lender who will lend on a 12 year term as originally promised even if it means an ERC.

What liability they potentially have will depend on the details of the advice given, and what mistakes they made but the fact that they are already shelling out for the monthly difference in payments and offered a £7k settlement speaks for itself.

Harrietdan

Yes I agree,  that's what the £7000 is ,they are trying to get the lender to split the ERC with them, so the lender suggested that they offer us the money to keep the present mortgage, rather than move to another mortgage. 

K_S

@harrietdan

- you could take the 7k (or negotiate for a higher number) and look to remortgage to a longer term at the end of the current fix. Obviously that depends on why only a 9 year term was offerred (retirement age, etc), whether you will be able to remortgage to a higher term at some point in the future and whether you'll be able to afford a higher monthly payment if you can't get a longer term.

- or you could try get them to sort it out and get you back on a 12 year term with another lender

[Deleted User]

Surprised it has come to this level already.   Did you not get a copy of the offer yourself and from the solicitor?  

They must have messed up real bad to be admitting to this level of liability

TrickyDicky101

What's the fixed term on the mortgage?  You mentioned ERC so presumably there is one.
Typically this might be 2 years or 5 years but I suppose it could be the entire 9 year term?

Harrietdan

5 years. Yes they have accepted full liability to this situation,  they have said they need 8 weeks to investigate,  after that if we aren't satisfied we can go to FCA.