Mortgage Advisor seems to be withholding information

AliceBanned

HelloI don't know whether I'm being paranoid or not but I'm uncomfortable about going ahead with a mortgage arranged by a broker; in any case it is not ideal as it is a 34 year term when I have done the calculations and can afford 20. (£71,500 at 5.9%) works out at £510 a month? Or am I missing something?Secondly she came to my workplace to fill in the paperwork, sat opposite me and filled it in and I signed at the end (in my lunch hour so I didn't have time to fully read everything, felt put on the spot and in any case should have been sent a copy of everything, but never was. I have asked for this twice and still not received it). Does this sound like something is amiss? Abbey who she has arranged the mortgage with, arenow trying to arrange their survey. I haven't come to any agreement as yet. She has also added contents insurance, which I didn't ask for and payment protection insurance which I didn't ask for. I would find all of this helpful if she had sent me all the information I had asked for. i can't go ahead with anything, no matter how much Abbey now chase me and appear to be going ahead, I'm not!! on principle.Does it sound like I'm being too suspicious? I've arranged for Charcol to give me a call this afternoon, so that I can shop around, but it is delaying things quite a bit. However there is no way I'm making a bit decision like this when I don't trust the broker!!Thanks for any advice.

dunstonh

in any case it is not ideal as it is a 34 year term when I have done the calculations and can afford 20.

Tell the adviser you can afford more. There is absolutely no reason why the adviser would want a shorter or longer term. At the moment, they may have the 34 year term because that is the impression you have given them on affordability.

Or am I missing something?

Possibly. Have you allowed for a 50% increase in your mortgage payment in case interest rates rise? Have you allowed for future costs you may have to pay (such as electric/gas/council tax) which tend to increase faster than wage increases and inflation? There is also the option to overpay if you do find yourself in surplus but there is little option if you find yourself short.

Secondly she came to my workplace to fill in the paperwork, sat opposite me and filled it in and I signed at the end (in my lunch hour so I didn't have time to fully read everything, felt put on the spot and in any case should have been sent a copy of everything, but never was.

She would have come to your workplace because that is what you agreed. If you didnt want that, why did you agree to it?

I have asked for this twice and still not received it).

Some of the bits come from the lender directly. What is it that you havent received and are asking for?

She has also added contents insurance, which I didn't ask for and payment protection insurance which I didn't ask for.

Has she just included the costs in the illustration or have you completed application forms for them?

However there is no way I'm making a bit decision like this when I don't trust the broker!!

You have to trust the adviser but you are accusing the broker of being poor at communication but it also appears you are as well. Advice is given based on the data you give the adviser. If you dont talk to the adviser about things like budget and costs then the adviser isnt going to know there is a problem.

Conrad

Alice you are doing the right thing. If an advisor wont give you all the illustration (KFI) and IDD (Initial Disclosure Document) she is breaking the law and may have something to hide, a large fee for example.

The insurance alone should be gone over with a fine tooth comb. Believe me the insurer WILL go over eberything in minute detial should you make a claim!

I find its often the dogy 'advisors' (actually sales people, not advisors) that complete insurance applications as they do not want the client to disclose something in the form that might mean the policy is declined! This is one reason so many claims are actually declined by insurers ("client did not answer a question correctly")

AliceBanned

Conrad wrote: »

Alice you are doing the right thing. If an advisor wont give you all the illustration (KFI) and IDD (Initial Disclosure Document) she is breaking the law and may have something to hide, a large fee for example.

The insurance alone should be gone over with a fine tooth comb. Believe me the insurer WILL go over eberything in minute detial should you make a claim!

I find its often the dogy 'advisors' (actually sales people, not advisors) that complete insurance applications as they do not want the client to disclose something in the form that might mean the policy is declined! This is one reason so many claims are actually declined by insurers ("client did not answer a question correctly")

Thank you both for spending time on this. Conrad I think you are right. I am trusting my instincts here as well. It is largely the fact that I asked for the IDD three times and have had excuses but still not received a copy, which made me wonder if something wasn't right. You are right that some are sales people and whilst dunstonh you don't appear to understand where I am coming from as a first time buyer with no experience of this, I am in no way slating mortgage advisors. Just double checking what is going on with this one. I am a good communicator, but this is her specialty and not mine, so if I am behind in asking for things and checking things, that is because I am learning. The mortgage advisor knows she has an advantage in that regard - I am a first time buyer. I think asking for things clearly several times - and yes I have given her all my financial details including what I can afford to repay- and not getting them does not make me a poor communicator. I didn't have a problem with her coming to my workplace. Dunstonh if feels like you are very judgmental about this - working full time and trying to arrange a mortgage, survey, etc etc on my own is difficult. In retrospect however I feel information at that meeting was not given to me and I am asking for it now, as I have a right to do. The fact that I didn't ask for it there and then is neither here nor there - any consumer has the right to question agreements afterwards for this very reason - sales people can take advantage and lay people need a cooling off period in which to check that everything is as they were told.I will see what comes in the post over the next few days, but I won't ask her again - if the information I have clearly asked for does not arrive I am not going ahead.Thanks for the info.

Rick62

Of course you should be given a copy of the documents. Abbey are a very respected lender, but as Conrad says, without the IDD and KFI you don't know the terms, if there is a fee etc.

Anyway the broker clearly is not listening to you if they put 34 yrs and you want 20 yrs. You are absolutely right to do nothing until and unless you are clear on everything and fully happy.

dunstonh

whilst dunstonh you don't appear to understand where I am coming from as a first time buyer with no experience of this, I am in no way slating mortgage advisors.

I am a little confused as to what you have been given. You mentioned that the adviser has included the cost of contents and ASU. I read this to assume that you had been given a KFI as that is the form that explains all the costs.

Dunstonh if feels like you are very judgmental about this - working full time and trying to arrange a mortgage, survey, etc etc on my own is difficult.

I am not. However, I will reiterate that a decent advice process needs decent communication from both sides. You are telling us that you want to 20 years but have you told the adviser that? Have you allowed for a 50%? increase in the mortgage?

If you dont trust the adviser then you shouldnt use them but make sure that you are supplying information and discussing issues.

AliceBanned

dunstonh wrote: »

I am a little confused as to what you have been given. You mentioned that the adviser has included the cost of contents and ASU. I read this to assume that you had been given a KFI as that is the form that explains all the costs.



I am not. However, I will reiterate that a decent advice process needs decent communication from both sides. You are telling us that you want to 20 years but have you told the adviser that? Have you allowed for a 50%? increase in the mortgage?

If you dont trust the adviser then you shouldnt use them but make sure that you are supplying information and discussing issues.

No you are mistaken. I have been given none of these documents. She has just sprung the contents insurance on me - I didn't even request it in the first place! This may be Abbey however trying to push it.Yes I told the advisor I would consider 20 or 25 years. Being new to all this, I had no idea they would come back with more than 25 years. I hadn't even considered it as an option, so couldn't possibly have mentioned such a term!! I have asked for fixed rate for two years, but as it is at the early stages haven't discussed any further. Perhaps they are allowing for 50% increase but I think a decent mortgage advisor would have explained this to me. 50% seems a bit steep anyway?I have since spoken to someone from Charcol who was much more informative and they are now looking to find a deal for me if they can. I'm sorry but I do think this first advisor, if not lacking in communication skills, is inefficient in providing information. I am astounded that you seem to err on the side of the adviser and assume my communications skills must be lacking!! As I said before, I am the layperson, she is the expert, although I should be well informed (as I am reasonably which is why I am not going any further without written confirmation), I can't be responsible for her not responding to my requests for copies of documents, again and again. They may come in the post next week, but I am now so annoyed at my requests being ignored that I won't try any harder with this!Thanks for your help everyone.

AliceBanned

Rick62 wrote: »

Of course you should be given a copy of the documents. Abbey are a very respected lender, but as Conrad says, without the IDD and KFI you don't know the terms, if there is a fee etc.

Anyway the broker clearly is not listening to you if they put 34 yrs and you want 20 yrs. You are absolutely right to do nothing until and unless you are clear on everything and fully happy.

Thanks - it isn't too much to ask! Of course people are busy/postal delays etc so it may all arrive, but it has raised my doubts that questions haven't been answered - I would have thought it would be common sense to email at the least the terms to me, rather than just "34 years" with nothing else!!

homer_j_3

It sounds a bit dodgy that the adviser has not provided any illustrations and this to me as if they are hiding something. Is this person a one man band or is it a larger company with multiple brokers?

I am going to try and avoid looking at blame on any part as the other brokers have said about all that can be said on what should happen on either side.

What I would do here personally is simply, call them and tell them asking that they issue you with the Initial Disclosure Document, Copy of Key Features Illustration and also a copy of the Fact Find and Application form that you have signed. I would agree a timescale in which this will be sent and state that if this is not adhered to then you will have no option to cancel all applications with them. I would stress that this is the Xth time you have requested this.

I would give 72hrs from this agreed action date to receive in the post.

I would then back this up in writing by stating the following facts:

- The number of times you have requested this information
- The fact that you have yet to still receive an IDD and KFI yet find that a survey has been instructed without your knowledge
- That you seem to have had some information about additional insurances, which you have not had explained nor agreed to at this stage.
- You want them to contact the Abbey to place a hold on any survey until you are completely happy with what the adviser has done.
- That you wish for a copy of this letter to be passed to their compliance department.
- If you have not received the information within the agreed timescales of 72hrs then you will have no option but to assume that the adviser has failed to meet their obligations under the rules in which he/she is governed and would like for all applications to be cancelled and an official complaint registered.

I would send this letter "signed for" with royal mail.

I would then wait and see if the information turns up. If it does then review and if it doesnt, send a further letter stating that you have not had the information and therefore wish to terminate the relationship with this adviser and/or their company.

The reason why I would do this is because the adviser may have their paperwork organised at their side to demonstrate that they have followed your requests and that you have no proof on your side as such other than your word.

Whilst your word may be good for most, I can guarantee you that "lost in post/did not receive" argument will not result in anything but the advisers compliance team stating that the adviser can demonstrate the info was produced and you are just now trying to get yourself out of what you are doing (this is based on the assumption that the IDD contains some nasty conditions about fees).

My way, will give you proof that you didn't receive as you have requested and you have an argument. You also ensure that if they issue a demand for payment, you have some back up for your defence.

Of course, if it is just a case that the advisor is just poorly organised and bad at communicating and there is no hidden nasties then you will not have lost anything.

dunstonh

Based on your clarification, homerj has given you the perfect response.

Hutchch0920

just as a quick comparison i'm purchasing a flat for £70,000 and will be paying £466 at 6.25% (fixed 2 years then goes upto something else,we'll be reassessing after the fixed period) a month over 25 years! so to me that figure seems ridiculously high, especially when L&C quoted me £30 for both me and my partner to be fully protected for mortgage payment and life assurance. which would still only make £496 over a shorter period of time at a higher %!