Mortgage broker error changing product led to taking mortgage with higher rate

pleasehelpmemartin

Hi,

i just wanted some advise i went through a broker to get a first time buyer mortgage. I had it accepted and was fine but as the rates were lowering i changed the product with the same lender a few times. 

The last change the application wasnt submitted correctly. The broker company made it was the lender at fault but turns out it was them. Meaning i had to complete at a higher rate and the delay in getting a response or reply from them i could have even got a better rate at the time when i realised something wasnt right. 

As my solicitor then need to request the funds changing product wasnt an option then as cancelling takes 24 hours and then another 24 hours and then the completion deadline would have been missed. 

The broker has admitted fault now and offered compensation to cover what the difference for the rate that didnt go through and intially offered £100 compensation but then have offered £150. 

I think they should cover the rate i could have got when i had to go back to them to check it. 

I even raised the complaint with the lender initially as the broker was being slow. Thats when i found out it was the issue at the brokers side. 

Should i take the offer or go to the financial ombudsman to get the compensation which i think i deserve?

Has this happened to anyone and what did you do?

penners324

The most you'll get is the difference in interest between the 2 rates plus the difference in product fee.

Have you worked out how much that is?

ACG

From a regulatory point of view, all they have to do is put you in the position you would have been. 
Clearly its not possible for them to put you on the rate, so the alternative is to pay you the difference each month. If the difference is say £4 per month for 24 months, then that is what they have to do. 

However, what they might do is offer you a lump sum which might be for the full amount or maybe not. If you go down the lump sum figure its just by agreement. 

pleasehelpmemartin

penners324 said:

The most you'll get is the difference in interest between the 2 rates plus the difference in product fee.

Have you worked out how much that is?

Yes i have, which they will pay in a lump some and the £150 compensation due to their error. This will then work out as the rate i should have got but not the rate at the time of finding the fault which i could have got if it wasnt for there delay. 

I think i may go with the offer given as the one to go for the rate at the time of realising the fault could be a long shot. I just wanted to ask really. 

Its a shame as it was a broker recommended by Martin too. I may not use them when it comes to the renewal due to the hassle and extra stress added by them. 

dunstonh

Its a shame as it was a broker recommended by Martin too.

He doesn't recommend any brokers.   There are a couple on this site but that is only because they have capacity.   Some of them don't have the greatest reputations.      Martin seems to like signposting to national firms but in reality, most smaller localised firms would give a better service and have greater experience than the factory line ones.