Help, Mortgage Advice gone Pear Shape, (from a Financial Advisor

Mad101daN

Hi

My partner and I went to see a independant mortgage advisor (IMA). He advised us to apply to the C&G for our buy to let mortgage.

We have just be turned down for this mortgage, because the C&G take into account our other mortgage that we have applied for and they think we are over strecthed.

We explained our full details to the IMA and he completed the forms for us. We checked through them and signed them. - The C&G turned us down for undisclosed infomation,ie he had not told them that we would be applying for another mortgage.

This has cost us £400, as you can imagine we are not best pleased. The IMA has been very good since then and has done everything he can to get us another mortgage, (its not a problem to pay as we already have tennats lined up to move in). He has also tried to get us our £400 back but as yet to no avail.

What advice could anyone offer us. We have used him to get this mortgage and another one, I think his fees are £900 from the mortgage companies, do you think its fair to ask him to pay the £400 ? Does he have insurance or anything to cover him ? We feel he should of known the C&G's policies, his experience in these matters is why we choose to use him. Had we gone direct to the C&G we would of disclosed what we were doing to them right from the outset and been told that it was not the right mortgage for us.

Any help would be appreciated.

Thx

Dan

MarkyMarkD

Absolutely he should pay the £400, if the circs are exactly as you've described.

He doesn't need insurance to pay you £400 - it's nothing compared to his procuration fees as you have pointed out. He should have had a better idea as to whether C&G would have accepted your application, and he should have filled in the forms honestly. In both cases he's done a rubbish job and should compensate you accordingly.

At the end of the day, there's no point using an adviser if they do a worse job than you could have done yourself.

Mad101daN

Thanks MarkyMarkD I agree with your points.

It would be good to hear from an advisors point of view as well.

Any other thoughts.

Dan

dunstonh

A mortgage advisor is not necessarily a financial advisor. Mortgage advisors have their own rules and regulation. They can have multiple hats (ie, designated investment advice, general insurance and mortgage) or they may just have one hat. They also can be independent with one hat but tied on another. Very common to have independent mortgage advisors but tied on the general or designated investment side). Always handy to be aware of that and you can thank the FSA for the confusion.

However, back to subject....

Can you clarify whether the multiple applications were a case of trying a couple of different lenders to see who would respond first? or were you applying for two mortgages from two different lenders with the intention to keep both? Was one of these a remortgage?

Mad101daN

Hi dunstonh

It is the latter, we were applying for two mortgages to keep both. One is a new mortgage on a new property, and one is a remortage converting our current house to a buy to let.

Cheers

Dan

Conrad

Mad101daN wrote:

Hi dunstonh

It is the latter, we were applying for two mortgages to keep both. One is a new mortgage on a new property, and one is a remortage converting our current house to a buy to let.

Cheers

Dan

As an IMA I wouldnt have recommended C & G, given your needs.

C & G are notorious for declining such applications, so I personally always advise against 'chancing' C &G. Other lenders tend to ignore other mortgage commitments (IF or GMAC for example). Sounds like perhaps this guy isnt very experienced.

eurows

If C & G turned you down because they thought you were overstretched then you are overstretched. So what do people like you do, apply somewhere else.

Commensense

Get into debt fast.....follow a clown

dunstonh

It is the latter, we were applying for two mortgages to keep both. One is a new mortgage on a new property, and one is a remortage converting our current house to a buy to let.

Sorry, thats led to more questions...

Was the remortgage for the same amount? was the original mortgage disclosed on the application?

Mad101daN

eurows wrote:

If C & G turned you down because they thought you were overstretched then you are overstretched. So what do people like you do, apply somewhere else.

Commensense

Get into debt fast.....follow a clown

People like me ? What sort of tone is that, you rude person.

elona

I do not know about the tone but he or she cannot spell commonsense!

Mad101daN

dunstonh wrote:

Sorry, thats led to more questions...

Was the remortgage for the same amount? was the original mortgage disclosed on the application?

The original mortgage was disclosed, the remortage was for a further £20,000 to cover the costs of the deposit on the new house.

Thx for your help.

Dan