Mortgage advice please guys?

Dan_Collins_2

I smell a broker that was not paying attention and once the original lender said no, he placed and was grateful for it being placed!

itsbeef

Well i've tried to get some sleep but the more I think about it the more p****d off I'm getting.

I think I'm going to see what the Mortgage Company say then give the FA an ultimatum.

Either they cover any costs that I incur by having to swap lenders and to the level that i'm satisfied with, or the Financial Ombudsman gets a letter?

Any suggestions?

herbiesjp

You are doing the right thing:

1) You are going back to the lender and the FA offering the chance to put things right

2) If that is not resolved to your satisfaction, follow the complaints procedure of the FA

3) If that is not resolved to your satisfaction refer your complaint to the Financial Ombudsman Service

At each step, you are taking the right action, and I would hope the FA realises the mistake and does not let it go that far

itsbeef

herbiesjp wrote: »

You are doing the right thing:

1) You are going back to the lender and the FA offering the chance to put things right

2) If that is not resolved to your satisfaction, follow the complaints procedure of the FA

3) If that is not resolved to your satisfaction refer your complaint to the Financial Ombudsman Service

At each step, you are taking the right action, and I would hope the FA realises the mistake and does not let it go that far

Thanks for the support......

Am I cirrect in thinking that the FA and his company will have insurance to cover such an event? If so would it cover the full costs that I incur or am I partially liable?

herbiesjp

THey will have professional indemnity cover - so that should cover the cost

However you need to see how the FA and/or lender react to your proposals - you are being fair and reasonable in allowing them to rectify the mistake - let's see what they say

homer_j_3

You need to firstly ask the FA what they are going to do about this. Be firm in saying that you want them to resolve this matter within 24 hours as you have a house to buy.

If they state that they will continue trying with lender to convince them to change mind then I would not accept this as you do not see why you were given a product with no portability options.

I would then suggest that as they clearly have mis-advised you, you feel it should be them who agree to pay the ERC for you. If they can get it changed with the lender then fine but you do not want to be hanging around waiting for them to get this answer. If they decline, then I would ask for details of the complaints procedure.

The company should hold professional indemnity cover for these situations and you should not face any liability. You received advice and expected that advice to be correct and they have confirmed in writing that this was a consideration in the advice so you were safe to presume that this would be OK.

They may state that portability is never guaranteed and had you had it, you still may have been liable for the ERC - if they try this, then you just need to respond, asking why they tied you in at all if then as you were pretty sure that you would want to move etc.

Do not worry about you having to prove anything other than the letter that stated that you needed the option to move without penalty.

Don't let this wind you up as it seems a very genuine mistake and I would imagine that the FA and their firm will not be happy in paying this out but accept that they have provided the wrong product. If you do not get the answer from them, then you can escalate to the Financial Ombudsman Scheme once their complaints process has been exhausted.

homer_j_3

herbiesjp wrote: »

THey will have professional indemnity cover - so that should cover the cost

However you need to see how the FA and/or lender react to your proposals - you are being fair and reasonable in allowing them to rectify the mistake - let's see what they say

Have you ever known a lender to change the minds on portability where it never exisited and that they know that its the brokers responsibility to ensure the recommendation is right.

I do not even know why the FA is speaking to the lender about this as I have more chance of winning the next 3 consecutive lottery draws than a specialist lender deciding to do this.

itsbeef

Many thanks for your time guys,

I will await to hear from the FA today and buzz back on here with their response.

Next step is how to try and secure the property I want .........

You just gotta love life! :j

herbiesjp

homer_j wrote: »

Have you ever known a lender to change the minds on portability where it never exisited and that they know that its the brokers responsibility to ensure the recommendation is right.

I do not even know why the FA is speaking to the lender about this as I have more chance of winning the next 3 consecutive lottery draws than a specialist lender deciding to do this.

Thanks for the laugh :rotfl:

I've never known it to happen either

But by acting in a fair and reasonable way - and not charging in guns blazing - you will hopefully not risk getting the FAs back up straight away and becoming obstructive

He already knows he got it wrong, follow the internal procedures, and then start pulling the aces from your sleeve;)

The OP will know exactly what to do, as all of us on the board will point him in the right direction :j

itsbeef

Well as expected the mortgage company aren't able/willing to allow me to transfer my mortgage to another property.

My FA has suggested that as the Section 10 element of the mortgage document was "glaringly obvious" then I am stuck with it.:mad: :mad: :mad: surely the fact that my first application to the Bristol & West stated that I needed a portable mortgage shows that the FAs failure to ensure that this was secured in my mortgage means he has been negligent?

Next move......

Call the director of the financial company he works for and arrange a meeting where I will suggest that they cover the costs incurred by me moving. If he says no then its the Financial Ombudsman where I will push for full cover of the costs on the grounds that the FA failed to secure the basic requirement of the mortgage I was looking for.

Or is that too heavy handed?

As it stands I am likely to lose the house that I want to buy due to the FAs error