Mis-sold policy?

siowenson

My 2yr fixed rate morgage was up on my flat in november so went to First Morgage to get a remorgage as they were the company i used when i originaly took out the policy and i was quite happy with them.
I was looking for a morgage policy with the view to buying a house in june which would mean increasing the loan amount.
While searching for a morgage(in the branch) the broker knew all our details and how much we were plannning to spend on our next house(185000) and decided apon a A&L morgage which was "portable" so that we didnt have to pay any fees to change when the time came. He checked out that we could get the morgage for £185000 and everything was dandy. This was in october.
While looking for a house we spotted a new build for £195000 that we liked and spoke to the First Morgage broker over the phone and he told us we would need to save up a bigger deposit but it would be okay. We put down the £500 deposit on the house and looked forward to moving in. :beer:

About a week later we spotted a better house(still a new build) for £185000, which is what we originally intended to spend, and decided to loose the deposit on the first one.

Weeeeelllll, we got a phone call from a broker who deals through the builders of the house we had settled on asking us if we would like them to handle the switch of our morgage. Normally i dont like people who try to get their custom in this manner but this time i let it pass.
They looked into it and told me that the current policy i was on(the A&L one i had just been sold by FM) levies a charge of £2500 if you take anything over a 90% morgage.

Basically FM has sold me a morgage without telling me there is a charge. I think the broker never noticed the charge and thats why he never mentioned it at the time.

I have phoned him and he says that he told us about the charge at the time of us renewing our morgage which is totally untrue. I hung up after agreeing to disagree and then spoke to my partner later who then said that the only time he mentioned it was when she phoned to enquire about the dearer £195000 morgage.

This guy has mis-sold me this morgage, what can i do about it?
It looks as if its his word against ours.

dunstonh

This guy has mis-sold me this morgage, what can i do about it?

There is a key features illustration issued which explains all the charges. If its on there then it is disclosed. You also say your partner was aware of it so it must have been mentioned.

It looks as if its his word against ours.

No. If its on the key features illustration then its documented that you were made aware of it. If its not on the key features illustration then it works in your favour. However, with your partner being aware I'm not sure how you could claim you were not told about it?

siowenson

We werent made aware of it untill my gf phoned to enquire about the dearer morgage which was about a fortnight after we had agreed to the policy in writing.

Where would i get the key features illustration? Should i already have it?

siowenson

Anyway, the whole point of a mortgage advisor is to advise me of the best mortgage.
And considering i will have to pay a heavy fee, i would say that it wasn't the best piece of advice.
Yes i admit to not reading over my terms and conditions but lets face it, he should have said something about the charge and he didn't. Whether he didn't realise or he made a mistake he didn't do his job right and I'm having to pay for it.

dunstonh

you would get the key features illustration prior to application. It is a mandatory document (very good document and one of the few things the FSA has introduced that is a benefit to the consumer).

If you havent had a KFI before application then it is a mis-sale.