Solicitors cancelled my mortgage!!

billielouisea

onylon said:

Do you really intend to stay on the higher rate? It's rarely the best option unless you are no longer able to get a mortgage eg. job loss or negative equity. Typically you would shop around and find a better deal at the end of your fixed term.

I think you should make a complaint to the firm but you haven't suffered any loss so I doubt you will get much compensation, if any.

Thank you 

doodling

Hi,

billielouisea said:

[...]
It became apparent the day before we were due to complete that the solicitors had sent the wrong paperwork back in October and this had prompted Halifax to cancel my mortgage. 

My mortgage advisor managed to go right up the chain at Halifax and get my mortgage reinstated so we could complete on the 21st, however I now have a higher interest rate after my initial 2 year fixed term.

My rate has risen from 3.59% to 3.99% which means that over to course of my mortgage I will pay £7,070 more than if they had not cancelled my mortgage! 

What would you do if this was you and do you think I should receive any sort of compensation for this? 

If you have ended up with a different fixed rate then I agree that there may be a clear loss that the solicitors should, depending exactly on how the error arose, compensate you for.

Normally the rate after the fixed rate comes to an end is variable and therefore could have changed at any time - is that not the case here?  If you are concerned about the variable rate then that will generally vary at the whim of the building society and / or the Bank of England and would have changed regardless of your solicitors' actions.

billielouisea

doodling said:

Hi,

billielouisea said:

[...]
It became apparent the day before we were due to complete that the solicitors had sent the wrong paperwork back in October and this had prompted Halifax to cancel my mortgage. 

My mortgage advisor managed to go right up the chain at Halifax and get my mortgage reinstated so we could complete on the 21st, however I now have a higher interest rate after my initial 2 year fixed term.

My rate has risen from 3.59% to 3.99% which means that over to course of my mortgage I will pay £7,070 more than if they had not cancelled my mortgage! 

What would you do if this was you and do you think I should receive any sort of compensation for this? 

If you have ended up with a different fixed rate then I agree that there may be a clear loss that the solicitors should, depending exactly on how the error arose, compensate you for.

Normally the rate after the fixed rate comes to an end is variable and therefore could have changed at any time - is that not the case here?  If you are concerned about the variable rate then that will generally vary at the whim of the building society and / or the Bank of England and would have changed regardless of your solicitors' actions.

I did not believe that the variable rate would change after the 2 years (however now I consider the work variable, the clue is on the name - silly me!), all I noticed was that the difference in the final costs at the end of the term was now £7000 more than it was before the solicitors made their error.

I see what you are saying about it varying anyway so maybe this is a non starter, it just seems very unfair that a professional body have made what I consider to be a major error which could impact me if I do move onto the variable rate. 

Thank you for your response, some people on this thread just seem a little sarcastic and pedantic for no reason.

nicknameless

billielouisea said:

Thrugelmir said:

Seems your mortgage would have been cancelled whatever. Once the Halifax became aware of the full facts. One assumes that this occurred when the Halifax reviewed the full submission from the solicitors. 

No this is not correct, the mortgage went through fine once they had the correct information. It was cancelled because the solicitors gave the bank incorrect information 

Pay attention to this response only.  The other posters have misread or misunderstood your OP.  A variable (follow on) rate is variable.  If your fixed rate and terms are the same as previously, nothing has changed.