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Incompetent Mortgage Lender


andykb3
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Hi,

 

I am in the process of trying to by a house, therefore trying to arrange a mortgage (I'll say who with once we have completed). My situation is slightly more complicated than usual as I am buying a shared-ownership house, although it shouldn't be too complicated...you'd think.

 

Believe it or not, this is a SHORT summary of what has happened.

 

  1. Apply for mortgage
  2. After 2 weeks we chase them up. We sent the application to the wrong dept as there is a specialist Shared Ownership Dept. They promise to forward it to that dept (don't know why they hadn't already)
  3. Another 2 weeks later we chase up again. Given the excuse that "the application has arrived with the assessor, who has locked it in their cupboard and we can't find the key". :roll:
  4. A week later, we chase up again - they've found the key and will process the application ASAP.
  5. Recieve offer 1, with 3 mistakes (interest rate, purchase price and survey type are all wrong). We ask for new one (they stick to that rate though)
  6. Recieve offer no 2, with more mistakes. Getting a little frustrated, but we ask for a new version
  7. Recieve offer no. 3 - offering an interest-only mortgage, and claiming we'd told them we would pay off the house with an existing endowment policy. We want repayment mortgage and don't have an endowment policy
  8. Recieve offer no 4 - looks OK, but the Housing Association realises the mortgage is too much (even though it was based on their info in the first place) We ask the lender for a new mortgage for a slightly lower amount.
  9. Recieve offer number 5 - new amount is fine, but we're back on interest only and an endowment policy. :evil:
  10. Recieve offer number 6 - still interst-only, but no mention of an endowment policy.
  11. Recieve offer number 7 - repayment mortgage, everything seems ok....except they've omitted the part about the mortgage being based on a shared ownership :eek:. This is from their specialist Sharped Ownership division.
  12. Currently waiting for version 8

This process has taken about 2 and a half months, during which time we could have completed and moved in.

 

My questions are this:

 

  • Who is the best person / dept to complain to (once we finally get the mortgage of course?)
  • Is it worth asking for compensation / goodwill payment / refund of setting-up fee due to the stress we have endured and the 2 months rent we have paid in the meantime becuase of their incompetence?
  • Has any1 else heard of this kind of problem

We would have already walked away but for the £500+ we spent of the survey and the 2 interest rate rises that have happened since we first applied.

 

If you have actually read through all of this, I thank you. I also needed to write this down to help me calm down.

 

Andy

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Oh my gosh you have relaly beenthrough the wringer... bearing in mind that moving house is supposed to be one of the most stressful things to do anyway!!!

 

You could try FOS ( Financial Ombudsman Service ) / FSA ( Financial Services Authority ) / CML ( Council for Mortgage Lenders

 

But I think for all of these you firstly need to put your complaint in writing to the company you have a gripe with. Keep a copy, send recorded or special delivery & give them a timescale to reply ( something like 14 days is reasonable ).

 

I would address it to the chief exec. if you can find their name

 

I would be clear what outcome you expect ie financial compensation but I'm not sure how much you should ask for as it can be difficult to quantify the sheer stress!!

 

I've not heard of this prob before...

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I'd request the original interest rate you were offered, and refund of the product fee. Seems reasonable to me. Maybe you could work out if your interets cost would have been less than your rent and ask for that difference back aswell. Asking for the full rent would be a bit rich as you would have had to pay your interets payments if you had moved in on time. I did not mention the capital part as this is not a true cost to you.

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Personally if I was dealing with a company that wanted my business and they were that inept i'd go elsewhere pronto, if theyre this bad when theyre trying to sell to you what are they like once they have you by the proverbials?

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russellhq - the interest hasn't changed, and we didn't actually pay the set-up fee - we added it to the mortgage instead. We will at least ask for it to be waived though (it was £500).

 

I can't move, for 3 reasons:

 

1) Interest rates have risen twice since the first offer (the interest rate hasn't changed on the mortgage).

 

2) I can't afford to walk away from the £500 spent on the survey

 

3) This has already taken well over 2 months - I don't want to have to wait for a new mortgage offer from another company to come through. The vendors have been patient (there is no chain involved), but I can't guarantee how long that will last.

 

 

Once all this has been sorted I will identify the company and maybe post a copy of the letter I send them - I don't want them to mess me around even more if they realise it's in the public domain. All I can say is that we are talking about a household name..

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  • 2 weeks later...
Guest weegirl

I would be asking for some sort of compensation if I were you. Speaking from experience they can use their discretion as to what you are due. I went through a very stressful situation with the Halifax about 6 years ago, wherein I was buying my ex out of his share of my house. To cut a very long story short I had an endowment and renovation work loan (secured). Both were going into my name, I had been approved and the endowment had been signed over so you would have thought it was easy enough.

 

Unfortunately the Halifax loan department and the mortgage department couldn't decide who had to take my ex's name of first. One department blamed the other for stalling. Between non-returned calls, people putting me on hold and hanging up, countless visits to my local branch etc etc etc it dragged on for months. I put a claim in against them for refund of the arrangement fee, reversal of interest as my old mortgage was carrying on and stress. I was able to argue that their actions put me under undue pressure as my ex had moved to another country in that time and I had to chase him to get his names off the deeds. Fun, I'm sure, considering he had time to think and was threating not to sign over by then out of spite, resulting in solicitors letters (I got the money back for those too). It sounds like you're keeping good records, take note of every telephone call, time, date, who you were talking to and what was said. I did that, and my complaint was 7 pages long, they couldn't dispute a thing as I had itemised phone bills to back it up, so they could match it with their recorded records.

 

After my settlement, my 5-year capped rate with penalties ran out and I moved my mortgage elsewhere.

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