Poor advice from Lloyds will cost me £14'500

[pianoman]

I had a meeting with an IFA friend last night, who calmly told me that the recession had caused his own mortgage APR to fall from 6.5% to 1.5%, reducing his monthly payments from around £900 to £250. When I balked and told him I was stuck in a fixed rate at 6.75% for the next 18 months (the rest of my 2 year fixed term) he told me that he would never have recommended that 6 months ago, and that he, and all the other reputable IFAs around the world knew that rates would be dropping significantly, and would stay low for some time.

 

My issue, and question for debate is this. While the banks are obviously a business and have to sell products that make themselves money, surely they have a responsibility to provide good advice. I appreciate you can never know for sure what is going to happen, but good IFAs are likely to be reliable, and if they all knew what would happen, the banks must have known. Over the term of my mortgage, this product will cost me around £14'500 than it should do. How can they get away with that? Is there any case for sueing them for giving poor advice?

[poppynurse]

Who advised you to take out the mortgage?

[GreatWonder]

I bought a house 18 months ago and have now lost around £20,000 on the value of it. My issue, and question for debate is this. While the Estate Agents are obviously a business and have to sell products that make themselves money, surely they have a responsibility to provide good advice. I appreciate you can never know for sure what is going to happen, but the Estate Agents must have known. How can they get away with that? Is there any case for sueing them for giving poor advice?

 

[laddie007]

i also bought a house 9 months ago ,and it has now dropped in value by about 20.000,i took a fixed rat mortgage for 5 years,i also wish ive ad had a crystal ball.

[godpikachu]

well, there were thousands of claims for endowment mis selling (i handled about 200 myself ), which is essentially the same thing, as all it boiled down to was bad advice given by financial advisors trying to get commissions for selling stuff.

 

might be worth discussing it with someone at the FSA.

[joneseyblod]

Could you not change mortgage providers and switch to a mortgage closer to the 1.5% the guy you spoke to has? Or are you locked in on this?

[patdavies]

I bought a house 18 months ago and have now lost around £20,000 on the value of it. My issue, and question for debate is this. While the Estate Agents are obviously a business and have to sell products that make themselves money, surely they have a responsibility to provide good advice. I appreciate you can never know for sure what is going to happen, but the Estate Agents must have known. How can they get away with that? Is there any case for sueing them for giving poor advice?

 

 

Two points.

 

1) An Estate Agent is paid for and works on behalf of the vendor, they do not work for the buyer.

 

2) Unless you paid for the advice from an estate agent, you have no grounds to sue - there is no contract between you and the estate agent. Even if there is misrepresentation (and leaving aside the Property Misdescription Act, which is a criminal matter), it should have been discovered by your conveyancing solicitor who could be liable for negligence if they failed to do so.

[bobbyh99]

I had a meeting with an IFA friend last night, who calmly told me that the recession had caused his own mortgage APR to fall from 6.5% to 1.5%, reducing his monthly payments from around £900 to £250. When I balked and told him I was stuck in a fixed rate at 6.75% for the next 18 months (the rest of my 2 year fixed term) he told me that he would never have recommended that 6 months ago, and that he, and all the other reputable IFAs around the world knew that rates would be dropping significantly, and would stay low for some time.

 

My issue, and question for debate is this. While the banks are obviously a business and have to sell products that make themselves money, surely they have a responsibility to provide good advice. I appreciate you can never know for sure what is going to happen, but good IFAs are likely to be reliable, and if they all knew what would happen, the banks must have known. Over the term of my mortgage, this product will cost me around £14'500 than it should do. How can they get away with that? Is there any case for sueing them for giving poor advice?

 

What was offered 6 months ago is vastly different to what is being offered today! its down to you to shop around for the best mortgage you can possibly get!

[raydetinu]

Tracker repayment mortgage always has been the best way to go since they were started back in the 90's.

Are taliking about your specific case or in general?

Banks and building societies would have given you options and may have advised one over another, but if the risks were explained then you would not have any comeback.

Now with an independant advisor you may have a chance if you could prove negligence in them not being competent or knowingly advising something they knew was wrong.