Mortgage broker made a mistake when remortgaging costing me about £1000. Is there any recourse?

ACG

amnblog said:

Sounds like a Halifax case.

Current rate ends 31/01/2022, new rate discussed could not be accessed before 01/11/2021. Rates went up 31/10/2021 so discussed rate not available on 01/11/2022 when switch could be requested.

If that is the case, it does not sound like anything the Broker could do about it.

However, a quiet word with the Broker first to get a clearer explanation.

What if the broker had looked at other lenders? 

This is where I think the details matter. 

getmore4less

ACG said:

getmore4less said:

ACG said:

The post is lacking on details, but assuming it is as black and white as you make out then yes I think you have a legitimate complaint also. 

details would help but £1k is not a lot given some of the rate rises in the last few weeks.

it does not take a big change in rate or a big mortgage to rack up £1k over a 5y fix. 
someone that had been looking at say Nationwide a few weeks back

£60k 5y fix over 20y would be £1k more expensive today

Mind you depending on the ERC, taking the hit and securing that good rate could well still be a good choice if there is a believe rates a will keep going up and they can't get a new one in place in time.

 

It is not just the change in rates. We also have to look at why the original application was declined - is it all the brokers fault or is it in part the customers fault? Did the customer cause any delays? Its not uncommon for me to be get 95% of the documents we need on day 1 and then 2 weeks later still be waiting for stuff. 

There is a lot to look at and consider, the financials is the easy part. 

The OP is saying it is a date issue the application has been approved but to take it they will have to do it while still in their ERC period.

Ohfeelya

Yes, that's exactly right getmore4less!

I currently have a mortgage offer for Santander's 0.99% 5 year fixed rate. However the mortgage offer expires in early March, my fixed rate with another lender ends in late March.

1. I told my broker the end date for my fix early in our first conversation - end of March. I needed an offer valid for 6 months. I knew this was an issue because I called my current lender and they wouldn't even talk to me until 3 months from the end of my fix.
2. I told my broker that I had applied for the DIP with Santander and was denied. (I didn't know why but now think it was because of my desired completion date). He said my application looked fine to him. I did get approved lol.
3. My broker sent me the offer and congratulated me. They did not notice the offer date was early March, therefore not useful for me. I had to point it out to them.
   
4. My broker called Santander to ask for the offer date to be extended. This product has specific valid dates, and they cannot extend the offer window to accommodate me. 
5. There were other sub 1% products available at that time. There are not any available currently.
   

I don't know enough about mortgages to really say but I feel like the "valid dates" for a mortgage product would be something a broker would see and pay attention to, especially with a customer that needed an offer valid for 6 months. I guess that's why I am posting here! How mad should I be? What should be my next steps? Complain? Use another broker? Ask for compensation?

I haven't done the calculations for the ERC but I doubt it's worth it to pay those fees to get this deal.

My broker is L&C by the way.

ACG

If the other sub 1% products at the time had 6 month offer periods  (not all do), I think you have a valid complaint. 
If they do not, you are no worse off as those products would not have been suitable and you would have presumably waited anyway. 

Ohfeelya

An update as maybe this will be useful to someone. 

Summary:

1. Met with a broker 6 months before my 2 year fix was ending
2. Broker suggested 0.99% 5 year fix
3. Application approved! But I noticed the offer expiry date was end of March, my fix was ending 1st April.
4. So much time had now passed that rates had risen and the best 5 year fix available was now 1.4%

I posted here because I wasn't sure what to do next, if brokers had complaints procedures etc.

Anyway it turns out I didn't have to do anything. My broker was apologetic and said to let them know when the remortgage had completed and they would refund me the difference between the rate I got (1.4%) and the rate I could have gotten if they hadn't made a mistake (1.1%).

I completed 1 April and the difference (almost £700) is now in my bank account.

Would I use L&C again? Yes I think I would. Mistakes happen but I was really happy how they handled it.

Thanks again for the help. 

cymruchris

Good outcome - thanks for coming back and updating the thread.

K_S

@ohfeelya Thank you for updating the thread and good on you and L&C for seeing the complaint through to resolution.

ACG

Would I use L&C again? Yes I think I would. Mistakes happen but I was really happy how they handled it.

This is 100% spot on.

If we (brokers) make a mistake, we have to put you in the position you would have been in had the mistake not happened. It sounds like L&C have done what they should have without making it overly complicated for you. 

Good outcome.

simon_or

Good outcome!