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    • Lennydog
    • By Lennydog 3rd Jul 18, 5:54 PM
    • 5Posts
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    Lennydog
    Fixed rate mistake
    • #1
    • 3rd Jul 18, 5:54 PM
    Fixed rate mistake 3rd Jul 18 at 5:54 PM
    In 2008 I got a 120% mortgage with Birmingham midshires. Against my better judgement the financial advisor talked me into getting a 5 year fixed deal. As the BOE dropped almost immediately upon signing I paid 30k more than I would have had I left it tracking which it thankfully reverted to after 60 months. I have found my email questioning the decision but ultimately I acquiesced. I assume there's no chance of redressing this
Page 1
    • zx81
    • By zx81 3rd Jul 18, 5:56 PM
    • 19,353 Posts
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    zx81
    • #2
    • 3rd Jul 18, 5:56 PM
    • #2
    • 3rd Jul 18, 5:56 PM
    No, you chose the product and would presumably had been happy if the BOE had gone up.
    • minimike2
    • By minimike2 3rd Jul 18, 6:18 PM
    • 2,034 Posts
    • 1,535 Thanks
    minimike2
    • #3
    • 3rd Jul 18, 6:18 PM
    • #3
    • 3rd Jul 18, 6:18 PM
    No, you chose the product and would presumably had been happy if the BOE had gone up.
    Originally posted by zx81
    Sounds more like the product was recommended, not chosen.

    Would need to know more about the reasons for the recommendation.

    Do you have a copy of the fact find OP? What were the reasons given for the recommendation and why ultimately did you sign on the dotted line if you didn't agree with it?
    • Lennydog
    • By Lennydog 3rd Jul 18, 6:40 PM
    • 5 Posts
    • 2 Thanks
    Lennydog
    • #4
    • 3rd Jul 18, 6:40 PM
    • #4
    • 3rd Jul 18, 6:40 PM
    The advisor said it's better to know you afford a fixed payment but it was December 07 and interest rates were just reducing as the crash kicked in and I emailed saying everything I'm reading suggests they are coming down further. The reply was 'true but the tracker rate is still the same rate as the fixed'
    • minimike2
    • By minimike2 3rd Jul 18, 10:11 PM
    • 2,034 Posts
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    minimike2
    • #5
    • 3rd Jul 18, 10:11 PM
    • #5
    • 3rd Jul 18, 10:11 PM
    There must have been something other than that to justify the advice?

    Do you have a suitability letter?
    • Thrugelmir
    • By Thrugelmir 3rd Jul 18, 10:21 PM
    • 61,016 Posts
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    Thrugelmir
    • #6
    • 3rd Jul 18, 10:21 PM
    • #6
    • 3rd Jul 18, 10:21 PM
    Against my better judgement the financial advisor talked me into getting a 5 year fixed deal.
    Originally posted by Lennydog
    Some 10 years later you have a precise recollection of the entire conversation? Unless it was minuted. I would question your abilities to do so. As few people have the ability to memorise such detail and keep it in context.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kingstreet
    • By kingstreet 3rd Jul 18, 11:38 PM
    • 34,344 Posts
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    kingstreet
    • #7
    • 3rd Jul 18, 11:38 PM
    • #7
    • 3rd Jul 18, 11:38 PM
    The advisor said it's better to know you afford a fixed payment but it was December 07 and interest rates were just reducing
    Originally posted by Lennydog
    December 07?

    Perhaps you should look at the BOE rate history here;-

    https://www.bankofengland.co.uk/boeapps/iadb/Repo.asp

    as in December 2007 they were just reducing by 0.25% off the recent 5.75% high.

    I don't know about you, but I've been doing this over thirty years and I didn't see rates of 0.5% on the horizon for March 2009.

    It was a period of uncertainty and those without a crystal ball were worried about what might happen to rates as the credit crunch unfolded and many were still looking for longer-term payment certainty.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Lennydog
    • By Lennydog 4th Jul 18, 6:35 AM
    • 5 Posts
    • 2 Thanks
    Lennydog
    • #8
    • 4th Jul 18, 6:35 AM
    • #8
    • 4th Jul 18, 6:35 AM
    We talked over email which I still have so my ability to read helps jog my memory
    • dimbo61
    • By dimbo61 4th Jul 18, 6:22 PM
    • 10,071 Posts
    • 5,451 Thanks
    dimbo61
    • #9
    • 4th Jul 18, 6:22 PM
    • #9
    • 4th Jul 18, 6:22 PM
    It would have been better if you had been turned down for a 120% mortgage back in 2008 !
    Lessons learned
    • Lennydog
    • By Lennydog 4th Jul 18, 7:41 PM
    • 5 Posts
    • 2 Thanks
    Lennydog
    No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.
    • Amst
    • By Amst 4th Jul 18, 7:55 PM
    • 113 Posts
    • 85 Thanks
    Amst
    No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.
    Originally posted by Lennydog
    Then what are you complaining about if it's all worked out well?
    • Lennydog
    • By Lennydog 4th Jul 18, 8:48 PM
    • 5 Posts
    • 2 Thanks
    Lennydog
    What a ridiculous statement- I was responding to an assertion that I would have been better off not getting a mortgage at all whizh I was explaining I don't believe to be true. Just because things didn't turn out disastrously doesn't mean I can't question advice that cost me 30k. This website is a coven of pompous weapons. Thanks for the help
    • getmore4less
    • By getmore4less 5th Jul 18, 5:47 AM
    • 33,476 Posts
    • 20,229 Thanks
    getmore4less
    The advisor said it's better to know you afford a fixed payment but it was December 07 and interest rates were just reducing as the crash kicked in and I emailed saying everything I'm reading suggests they are coming down further. The reply was 'true but the tracker rate is still the same rate as the fixed'
    Originally posted by Lennydog
    Did you need to know the mortgage payment would/could not go up?
    How stretched were you at the time?

    once you can get a client to agree to that it reduces exposure to any miss selling as they can focus on fixes.


    A quick look suggest that fixes were quite close to base rates and trackers were around with very low margins above base.

    120% would have limited lender options, how many lenders were offering and considered at that at the time?
    • Amst
    • By Amst 5th Jul 18, 6:16 PM
    • 113 Posts
    • 85 Thanks
    Amst
    What a ridiculous statement- I was responding to an assertion that I would have been better off not getting a mortgage at all whizh I was explaining I don't believe to be true. Just because things didn't turn out disastrously doesn't mean I can't question advice that cost me 30k. This website is a coven of pompous weapons. Thanks for the help
    Originally posted by Lennydog
    Ok, let me put it this way, you don't have a genuine claim so move on with your life
    • csgohan4
    • By csgohan4 5th Jul 18, 8:03 PM
    • 5,156 Posts
    • 3,278 Thanks
    csgohan4
    hindsight is great isn't it, wish I had a crystal ball to predict interest would save a packet


    it's everyone else's fault not yours right?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • dimbo61
    • By dimbo61 5th Jul 18, 8:35 PM
    • 10,071 Posts
    • 5,451 Thanks
    dimbo61
    Was the mortgage broker in branch ?
    If you have got emails you could always put a complaint in with your lender.
    Nothing to lose.
    We took out a 5 year fix in 2005 for security as it was a huge mortgage for us at the time.
    Completely blown away in 2009 when the boe base rate dropped to 0.5%
    No one saw that coming and a few very lucky borrowers had tracker deals at 0.5/1% below base rate !!!
    • takman
    • By takman 6th Jul 18, 12:25 PM
    • 3,771 Posts
    • 3,434 Thanks
    takman
    No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.
    Originally posted by Lennydog
    If the mortgage was a stretch to pay and right on the limit of what you could afford then a fixed rate is a good recommendation as you needed to guarantee the payments wouldn't increase making you unable to pay it.

    As csgohan4 this actually is a genuine occurrence of hindsight (which is rarely used correctly on this forum!) because if you knew rates would be going down you wouldn't have signed the deal.
    • Thrugelmir
    • By Thrugelmir 6th Jul 18, 5:53 PM
    • 61,016 Posts
    • 54,213 Thanks
    Thrugelmir
    No not really - my wife was 7 months pregnant with our first child and we had a violent neighbour. The house I moved to is ace with good schools and even better neigbours - the mortgage was a stretch and over paying was a grind but I worked hard to pay for it. We're still here and we are now 5.
    Originally posted by Lennydog
    Fortunately it was an era when 120% mortgages were being granted. How much did you gain from being allowed to consolidate the debt? These days you'd have zero chance of doing so.

    Many years ago I once fixed a five year term at over 10%. Only to watch base rate fall. More recently I was fortunate to borrow at 0.35% above bank base. Swings and roundabouts as they say.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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