Was my mortgage mis-sold? Advice please

howardad

In January 2004 I was looking for a new morgtgage - my exisiting deal with the Halifax was no longer as attractive, plus I wanted to fit double glazing and a new kitchen and pay off some credit card debts. I did some research on the internet and as a result was contacted by an IFA. I decided to let him do the hard work.

I set down what I was looking for - £66.5k on a £70k flat, portable, happy to consider fixed or variable rates, no tie in beyond a fixed or discounted period and no longer than 2 years of fix or diccount.

The first choice with Abbey didn't work as I was looking to pay off debts so I opted for Alliance and Leicester, the monthly payment for the first 2 years was great, thereafter it leapt up but there'd be no tie in and I'd be ready to move to the next good deal. The IFA also set up an MDLA policy for me.

Fast forward 12 months - I've got enagaged and we're looking to buy our first house together - I need a new mortgage. Now I know I'm tied into March 2006, the redemption penalty is £1600 but as A&L have some attractive deals I decide to port. I'm dealing direct this time and in every conversation and in the KEY Facts Illustrations I'm sent the tie in on my existing mortgage is shown as ending in March 2006. The new mortgage is agreed based on this - I even agreed to the £395 booking fee to get a product that would leave me a free agent in March!

I receive the written offer around 13/7/05 suddenly there's a further 12 month tie in to March 2007, the 12 months where the payments leap up! Obviously I phone A&L there's some initial confusion but I finally speak to someone (21/7) who can confirm that their records show that the tie in is only till March 2006 - they need to investigate what went wrong and they'll get back to me in 7 - 10 days. Now we're moving on 29/7 but given what I've been told I'm feeling relieved.

27/10 a letter from A&L actually they were right in the first place I am tied in to March 2007. I'm moving house in 36 hours and there's not really anything I can do.

1. Did the IFA mis-sell / mislead me? Can I take any action here? I feel a bit of a plonker for taking things on trust and not fully reading all the paperwork - A&L are actually right but it's not the mortgage product I wanted.

2. There's still no explanation from A&L as to why I was given incorrect information when speaking to them. This formed a material part of my decision making can I take any further action here?

3. What should I do next - to move to another provider before March 2007 will cost £1600, even to move to another A&L product will cost £1300 plus I know that the repayments over the first year won't make much of a dent in the mortgage - money for nothing almost. The extra cost of the higher payments over 12 months is about £720 and that looks to me to be the best option.

For information my current mortgage is £118,000 repayments of £670 per month rising to £730 in March.

Any advice very welcome

Conrad

howardad wrote:

In January 2004 I was looking for a new morgtgage - my exisiting deal with the Halifax was no longer as attractive, plus I wanted to fit double glazing and a new kitchen and pay off some credit card debts. I did some research on the internet and as a result was contacted by an IFA. I decided to let him do the hard work.

I set down what I was looking for - £66.5k on a £70k flat, portable, happy to consider fixed or variable rates, no tie in beyond a fixed or discounted period and no longer than 2 years of fix or diccount.

The first choice with Abbey didn't work as I was looking to pay off debts so I opted for Alliance and Leicester, the monthly payment for the first 2 years was great, thereafter it leapt up but there'd be no tie in and I'd be ready to move to the next good deal. The IFA also set up an MDLA policy for me.

Fast forward 12 months - I've got enagaged and we're looking to buy our first house together - I need a new mortgage. Now I know I'm tied into March 2006, the redemption penalty is £1600 but as A&L have some attractive deals I decide to port. I'm dealing direct this time and in every conversation and in the KEY Facts Illustrations I'm sent the tie in on my existing mortgage is shown as ending in March 2006. The new mortgage is agreed based on this - I even agreed to the £395 booking fee to get a product that would leave me a free agent in March!

I receive the written offer around 13/7/05 suddenly there's a further 12 month tie in to March 2007, the 12 months where the payments leap up! Obviously I phone A&L there's some initial confusion but I finally speak to someone (21/7) who can confirm that their records show that the tie in is only till March 2006 - they need to investigate what went wrong and they'll get back to me in 7 - 10 days. Now we're moving on 29/7 but given what I've been told I'm feeling relieved.

27/10 a letter from A&L actually they were right in the first place I am tied in to March 2007. I'm moving house in 36 hours and there's not really anything I can do.

1. Did the IFA mis-sell / mislead me? Can I take any action here? I feel a bit of a plonker for taking things on trust and not fully reading all the paperwork - A&L are actually right but it's not the mortgage product I wanted.

2. There's still no explanation from A&L as to why I was given incorrect information when speaking to them. This formed a material part of my decision making can I take any further action here?

3. What should I do next - to move to another provider before March 2007 will cost £1600, even to move to another A&L product will cost £1300 plus I know that the repayments over the first year won't make much of a dent in the mortgage - money for nothing almost. The extra cost of the higher payments over 12 months is about £720 and that looks to me to be the best option.

For information my current mortgage is £118,000 repayments of £670 per month rising to £730 in March.

Any advice very welcome

You certainly have a water - tight case if the original IFA illustration and redemption info has turned out to be inaccurate. By 'original 'illustration' I mean that which you were given PRIOR to applcation, not the actual mortgage offer. Your decisions to commit to an application would have been driven by the initial illustration alone.

You need to take this up with the IFA who must hold such records for at least 6 years (the rules that applied when the contract was sold). IFAs have indemnity insurance for any such compensation costs. Complain in writing. Give him a couple of weeks, if not resoLved go to the FSA.

Good luck.

Scott

Ask for a copy of the original offer of loan, to see if the tie-in was specified on the document you signed.

dunstonh

The FSA will not deal with the complaint. That is not their role. Also, mortgage regulation didnt come in until 31st October 2004. Only if the firm is still trading in mortgage class business after regulation will cases prior to regulation come under the FOS banner.

However, arent we jumping the gun a bit here? There is no indication that any discussion or clarification has been sought from the advisor. Also, the advisor could be totally innocent in this and A&L could have the information wrong.

At this stage, I think the best option is to ask the advisor as they will have the copies of the paperwork. One of the most important docs would be the mortage offer that you signed. That contains details of the tie in. I think before you need to get a copy of that before you decide who is at fault.