Refund offer from Mortgage Broker

adason

Tiddler wrote: »

It appears that they are not offering the difference between what you have paid and what you could have paid - they are just giving you the commission they earned from the mortgage company, so no calculation has taken place.

But i don't think they will be able to give us a calculation will they? Will they have kept recrds showing what we could have been offered? and will it be more then the commission?

i do know at the time the mortgage rate was really low around 4-5% and ours was 7% but at the time we were just greatful to get a mortgage and always had it in our mind to re-do after the 3 year tied in term was up, of course the market now is very different and i don't know if that will be possible, or if it is if it will improve things for us.

do you think i should accept Tiddler?

MortgageMamma

there are a lot of things to take into consideration here:

1. How many product providers the firm had access to
2. were you charged a fee for the advice
3. did you receive a reasons why letter explaining why they recommended that product?
4. did you receive a copy of the mortgage quotation?
5. did you have adverse credit when you applied for the mortgage?
6. Does the adviser have a copy of the research they did on file?

I might get slated for this, but I think you should get in touch with the firm and actually ask them HOW they are meant to have compromised you and why the FSA are insisting you compenated. Try and get some more details.

Re the compensation the letter doesnt really give enough away to say whether you should accept the offer or not. You may be entitled to more, or, it may turn out that you have not been misold and its just the firm didnt keep adequate records in the FSAs view. If thats the case then you shouldnt take the money on moral grounds.

Ian_Griffiths_Halifax

MortgageMamma wrote: »

3. did you receive a reasons why letter explaining why they recommended that product?

The Reasons Why letter was the old Mortgage Code Compliance Board document. It's now a 'Record of Suitability'. Unfortunately though, this isn't compulsory. It should be IMO, but it's not.

MortgageMamma

Yes I know that, but I still call them reasons why letters because thats what they are. reasons why a product is suitable and was recommended.

Ian_Griffiths_Halifax

That's what they are and that's what they should be called because that's what everybody called them, but the FSA like to change things for the sake of it just so somebody can justify their job.

I didn't mean to tell you your job, just pointing out the difference to the OP as he took the mortgage out after Nov 04.

MortgageMamma

yeah i know what you meant mate, i wasnt being snappy im just so frustrated with work at the moment. The industry needs some consistency. the left hand doesnt know what the right hands doing anymore.

I just feel like sticking two fingers up at the FSA and telling them I ain't complying with their bloody stupid rules no more.

UK007BullDog

Yeah MM, I so feel you!

So many "advisers" now no longer offer advice but put 2 or 3 mortgages in front of the customers and say "choose".

That way they cannot be taken to the cleaners if it goes T**s up.

Ian_Griffiths_Halifax

Come the Mortgage Broker Revolution!

Can you imagine a march of 20,000 Mortgage Brokers all in pin striped suits or smart two pieces and high heals (some of them blokes) marching on Downing Street :rotfl:

MortgageMamma

I have suggested something similar on a broker forum but nobody ever takes me seriously. I've also suggested hurting the lenders back on a big scale but again nobody is taking me on. Sometimes you have to put your neck on the block to make a change. I am willing to do that. Quite frankly I couldnt give a stuff if I was authorised or not at present!

Tiddler_2

Just skim reading the posts can't see where you say what size of mortgage you have, what term it was taken out for, and what credit problems you had