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Broker cock up

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  • 21-01-2009 6:05pm
    #1
    Jonnykitedude
    Registered Users Posts: 827 ✭✭✭


    Hi Guys
    Hope some of you can help.

    Myself and the other half are building a house at the moment and applied for out mortgage back in Aug. Now down the line there has been loads of problems with the mortgage company regarding life insurance, land registry maps along with a pile of other stuff, The solicitor reckoned it was due to the bank not having money to give us and that they where just stalling etc.

    Now we have only received the first stage payment last week and the house is ¼ complete, we have funded this by loans etc. Anyway the Wife was on the phone to the broker and just asked was the fixed term still only one year, to my wife’s horror she said no its for 2 years when infact we where told it was for 1 year. Now I know this is our fault and more importantly the solicitors fault for not reading over the terms.
    So basically our rate is 5.7% for 2 years which is pretty high if you look at what other banks are giving.
    My question is that if you where to go to the lender and say “I can’t keep up with theses repayments” will they come to some agreement or drop you down to a variable rate? Reason I ask is this is what the broker told the wife today on the phone.
    Find it hard to believe myself.

    Cheers


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    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Ok,

    Firstly you can not blame any one but yourself. You signed the forms. When you got the offer letter did you not see the Fixed Rate term mentioned??

    As for a Solicitor saying the banks have no funds, thats utter crap. Why would it be up to him to tell you about the Fixed rate also?

    Anyhow. You can try and switch your mortage. You will have to pay an exit charge on the current mortgage also, do a search on the forum as this exit charge was discussed recently. I would not use the same broker again, thats plain silly. Maybe even use a different solicitor cause your not having much luck with either....


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    #3
    Show_me_Safety
    Closed Accounts Posts: 280 ✭✭Show_me_Safety


    your letter of approval, the drawdown and pretty much any document on at the start would have the product type.

    why did your wife ring to see if you were on a 1yr fixed whenyou's were sure you's were.

    you should try and break out of that rate...its pretty straight forward.


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    #4
    Brainz
    Registered Users Posts: 205 ✭✭Brainz


    If you went through a broker you would have been issued with a REASONS WHY which would have outlined the details of what loan type you where taking out check this out to see what the broker had on this -as this would have stated weather you went for a 1 or 2 year fixed.

    Whatever lender you went with would of specified on the LOAN OFFER the rate, the type of loan, in this case fixed and the expiry date of this.

    In relation to breaking your fixed rate agreement to variable there would be 1 point that you should think about

    1. how much of a fee will your lender charge you to break out of your fixed offer.

    I have several clients that where a year into ther 5 year fixed and the fee they are being charged is over 18k - this is for a standard 300k mortgage -

    Your mortgage might not be this high but it is something that you will need to clarify with your lender


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    #5
    Jonnykitedude
    Registered Users Posts: 827 ✭✭✭Jonnykitedude


    I’m putting most of the blame on the solicitor tbh.We had signed for the mortgage 5 times with Haven then they turned around and said that they would not give us the loan due to the wife’s life insurance. So then the broker went with first active, came back once after signing the papers in October so we had to sign again at the end of October due to a cock up in first active. Solicitor said it was all the same as before so we just need to sign.

    How do you break out of the rate without suffering huge penalties?


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    #6
    Slice
    Closed Accounts Posts: 1,133 ✭✭✭Slice


    If you were mis-sold a product by your broker you can always recourse to the Financial Regulator


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    #7
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Jonnykitedude wrote: »
    I’m putting most of the blame on the solicitor tbh.We had signed for the mortgage 5 times with Haven then they turned around and said that they would not give us the loan due to the wife’s life insurance. So then the broker went with first active, came back once after signing the papers in October so we had to sign again at the end of October due to a cock up in first active. Solicitor said it was all the same as before so we just need to sign.

    How do you break out of the rate without suffering huge penalties?

    Still not his fault. But anyhow....

    In the current climate it will be next too impossible to get out of with paying a fee. You can ask the bank to tell you what the actual cost to them is, of you pulling out of the Fixed rate. In actual terms its alot less than what they say to you normally. But then again, its a different place in banking as it was.

    This worked for a customer before.


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