shall I take the cash or take it further? dont know what my rights are. - HotUKDeals
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shall I take the cash or take it further? dont know what my rights are.

miss money saver Avatar
8y, 3m agoPosted 8 years, 3 months ago
I'll keep this brief. hope someone can help me know what to do.

when we bought our house in 2000 we had a financial adviser who helped us find a suitable mortgage. he supplied us with his report.
a mortgage for two years at a reduced rate no tie in.
after two years we looked to change our mortgage but were tied in for four years and would have to pay a penalty to be released.
The financial adviser was not helpful.
his report to us (which he signed ) said 2 years no tie in, the mortgage agreement we signed but he supplied says four year tie in. after some discussion with him he told me to go away.
It has taken four years but I have now reported him to the firm he worked for at the time and they have offered me £500 good will payment.
Can anyone out there tell me what they think. is this a reasonable offer?
should I take it or should I take it further.

Thanks in advance
miss money saver Avatar
8y, 3m agoPosted 8 years, 3 months ago
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1 Like #1
I think you need to find out how much you could of potentially saved if you were able to change mortgage providers and then compare against that
banned 1 Like #2
DIVA is right, you need to calculate your potiential loss, I used to work for a large bank and they would always complete a rough calculation and then offer less in the first instance....50% of the time the customer would take it, the rest of the time we'd have to calculate exactly the loss etc...but then what proof do you have? do you have a signed document from another provider to state you were going to go with them?

Unless you feel your out of pocket by a lot more than that I'd take the money and run....the alternative will take a long time and cost you money, this is a quick £500
#3
Yes I do have the report of his findings which he signed,
it states what he advised, and what we were going for.

we had a discounted rate for two years (2.55% off) then the rate went up and we were tied in for another two years. the fee to leave was £3,500, so we stayed as we could not aford to pay that. as the interest rates went up quite a lot but dont know off the top of my head.

by the time the paperwork came for morgage the conditions had changed. this is what he gave us to sign and also this is why we asked for his help. should he have checked the paperwork was correct before we signed.
1 Like #4
you should maybe contact the FSA or somebody like that they will be best placed to help you, it is appauling he was supposed to be helping you. hope it all works out well for you!! :-)
#5
My husband is a financial advisor and used to deal with just mortgages but has now changed to general advice (thank goodness in the current climate). Anyway, I read your statement out to him and he was no way take it. He said to work out how much the extra 2 years cost you and you want to claim at least this amount from the company, he said that surely over 2 years this would have been more than £500. Go back to the company and say that this doesn't seem a fair amount to cover the bad advice and the extra you had to pay for 2 years and that you are planning to go to the Financial Services Authority Ombudsman and if they are no more help, then do it as they will chase the company up for you.

The company are trying to get out of it quickly because they know it will cost them a lot more if you go through the proper channels. If you are in any doubt about it then contact the FSA first to ask them their advice. Just google FSA and it should come up with the Financial Services Authority.

My husband said that the company have been a bit silly because if they'd offered you a little more than £500 in the first place then you wouldn't be looking to chase it up any further and ask for more.

Hope this helps.
banned 1 Like #6
miss money saver

by the time the paperwork came for morgage the conditions had changed. this is what he gave us to sign and also this is why we asked for his help. should he have checked the paperwork was correct before we signed.


Probably not exactly what you want to hear, but you should have checked the paperwork was correct before you signed.
If the paperwork you signed clearly said a 4 year tie in then I think you should take the £500 as it's as much your own fault as his, from what you have said.
Thats just my opinion though
1 Like #7
£500 is a very cheap and insulting offer, I know we had a similar situation with a mortgage advisor that sold us a "cashback" mortgagae with a tie in for 3 years (it actually turned out to be 5 years when we studied the paperwork fully 3 years later!). We got a cash back of £2300 but as we were tied into a very uncompetetive rate for an additiional 2 years, we could either payback the full cashback plus 3 months interest to buy out or ride it out. When we finally ended the tie in period we switched to a different mortgage deal and instantly saved £210 a month, so we had lost around £5000. We eventually settled at an offer of £2500 pounds, but the initial offer was very low. You need to calculate your total loss by this mis-selling and return with that figure and let them make a better offer, don't be artistic wih your figures, show where you could have got the better deals and the difference in cost. Even visit Citizens Advice or contact the office of the Financial Services Ombudsman. You would be better off avoiding the Ombudsman as it is not a quick process, I was told it would take up to 2 years to investigate and make a decision.
It all depends how much you want to pursue the matter, but £500 doesn't sound like much of an offer.
1 Like #8
colinsunderland
Probably not exactly what you want to hear, but you should have checked the paperwork was correct before you signed.
If the paperwork you signed clearly said a 4 year tie in then I think you should take the £500 as it's as much your own fault as his, from what you have said.
Thats just my opinion though


If the deal had changed though he should have legally pointed out what the changes were before it was signed.
banned#9
Annie1508
If the deal had changed though he should have legally pointed out what the changes were before it was signed.


Agreed but surely he would have told them to read the forms before signing and there will have been a bit on the form saying 'I confirm I have read and understood the above and agree to all the terms and conditions' or similar just above the signature box?
Why would anyone sign a form committing themselves to the largest debt they are ever likely to be in without reading the form?
#10
colinsunderland
Agreed but surely he would have told them to read the forms before signing and there will have been a bit on the form saying 'I confirm I have read and understood the above and agree to all the terms and conditions' or similar just above the signature box?
Why would anyone sign a form committing themselves to the largest debt they are ever likely to be in without reading the form?


I agree with Colin-i was sold an endowment and told it should net me £7000 at term but the advisor had put a lower rate on the form that i signed. Due to this they gave me back what i would have saved if i hadnt taken an endowment. I had signed it...
#11
I agree we should have checked the paperwork and I do feel really stupid, but this why we went to him for advice. what he says is his findings were correct on the date of the report but we signed the paperwork 10 days later (allowing for it to be posted back to him/us) and he said it all changed in this time and we should have noticed when we signed, surely in was his job to point it out. however we did sign it and it is our mistake.

He has since left the company he was working for at the time and he has asked if we will sign over peps and isa which he arranged for us when he was employed by this company. (cheeky begger) (he now works for himself). I feel sorry for the company involved, will they claim any compensation from him? I do feel a little guilty. :oops:
#12
miss money saver
I feel sorry for the company involved, will they claim any compensation from him? I do feel a little guilty. :oops:


Don't EVER feel guilty about doing what you think is right. Do you think they feel sorry for you? Of course they don't, that's why they are only ofering you what they think they can get away with.
#13
we did read the form but he assured us we were not tied in as he had written it in his report. however our mortgage document reads "please carefully note any special conditions in this Offer which provide for the payment of additional amounts if this loan or any part of it is repayed by you before the end of the mortgage period"

The special condition was there in the morgage agreement on page four in small print 5.5% of the amount is to be paid if we withdraw.

We borrowed £65000 and repaid 2.55% below standard rate for first two years, standard rate at the time was 7.740% but we were tied in for four years. I dont know if £500 is fair.

Was it his responsibility to read the morgage agreement also.?
#14
colinsunderland
Agreed but surely he would have told them to read the forms before signing and there will have been a bit on the form saying 'I confirm I have read and understood the above and agree to all the terms and conditions' or similar just above the signature box?
Why would anyone sign a form committing themselves to the largest debt they are ever likely to be in without reading the form?


Because a lot of people don't have the first clue when it comes to finances or mortgages etc (not saying this is you though Miss Moneysaver) which is why they go to an advisor rather than searching for a good deal themselves. My husband always found that his clients trusted him explicitly and says he would've pointed out that the deal had changed before the customer had signed it. He says that he rarely had a client read the whole mortgage after he had explained what was in it, that's why they were seeking his advice and what he was paid for.

Admittedly it would make sense to read the whole thing before signing but mortgage applications are pages long so I can see how it's happened. Lack of knowledge about this kind of thing is why lots of customers stay with the mortgage companies after the fixed rate ends as they don't understand how they work, something that is changing nowadays but there are these people still out there!!
#15
miss money saver
we did read the form but he assured us we were not tied in as he had written it in his report. however our mortgage document reads "please carefully note any special conditions in this Offer which provide for the payment of additional amounts if this loan or any part of it is repayed by you before the end of the mortgage period"

The special condition was there in the morgage agreement on page four in small print 5.5% of the amount is to be paid if we withdraw.

We borrowed £65000 and repaid 2.55% below standard rate for first two years, standard rate at the time was 7.740% but we were tied in for four years. I dont know if £500 is fair.

Was it his responsibility to read the morgage agreement also.?


As said earlier, perhaps rather than us all giving our opinion, like a few people have suggested I would get in touch with the FSA tomorrow and ask them their advice. I'm sure if you tell them your case they will e able to advise whether or not they feel you have a reasonable claim and you can make a decision from there. They are far more likely to be realistic than the company.
#16
deek72
Don't EVER feel guilty about doing what you think is right. Do you think they feel sorry for you? Of course they don't, that's why they are only ofering you what they think they can get away with.


oh no neer feel guilty-i would def seek legal advice-get what you can from them.
1 Like #17
Not a financial advisor, but have been using MSE for getting extra fees & suchlike back over the last year or two.

My gut feeling is, if they are willing to offer £500 they actually owe you a lot more (cover up...). Go Online to FSA - s'not that much hassle - and not only will they investigate and cause the firm more hassle - I reckon you should get a fair bit more out of this too.

Good luck in your decision.
#18
Annie1508
If the deal had changed though he should have legally pointed out what the changes were before it was signed.


colinsunderland
Probably not exactly what you want to hear, but you should have checked the paperwork was correct before you signed.
If the paperwork you signed clearly said a 4 year tie in then I think you should take the £500 as it's as much your own fault as his, from what you have said.
Thats just my opinion though


Annie1508
Because a lot of people don't have the first clue when it comes to finances or mortgages etc (not saying this is you though Miss Moneysaver) which is why they go to an advisor rather than searching for a good deal themselves. My husband always found that his clients trusted him explicitly and says he would've pointed out that the deal had changed before the customer had signed it. He says that he rarely had a client read the whole mortgage after he had explained what was in it, that's why they were seeking his advice and what he was paid for.

Admittedly it would make sense to read the whole thing before signing but mortgage applications are pages long so I can see how it's happened. Lack of knowledge about this kind of thing is why lots of customers stay with the mortgage companies after the fixed rate ends as they don't understand how they work, something that is changing nowadays but there are these people still out there!!



you are right Annie 1508 I didn't and I am still struggling to understand all this legal jargon.
I am not offended by anyones comments, I really appreciated all your help and advice.

when he brought the agreement to us we did ask him what happens after two years when the rate goes up and he said "we look for a better deal for you" but I cannot prove he said that. although I have got a report with his signature stating two year no tie in. with mortgage company involved.

rep to all for you help and comments. thanks
banned#19
Annie1508
Because a lot of people don't have the first clue when it comes to finances or mortgages etc (not saying this is you though Miss Moneysaver) which is why they go to an advisor rather than searching for a good deal themselves. My husband always found that his clients trusted him explicitly and says he would've pointed out that the deal had changed before the customer had signed it. He says that he rarely had a client read the whole mortgage after he had explained what was in it, that's why they were seeking his advice and what he was paid for.


I'm not saying the advisor is blameless, in fact he doesn't sound like a very good one at all, but I would have thought the end responsibility would be with the customer to ensure they read and understand all the paperwork.
If the OP can get more than the £500 then go for it, I hope you do, just I think if it were me personally i would be tempted to take the £500. If they want to be funny, surely all they have to do is say the advisor rang you and told you about the changes, and you would be hard pushed to prove otherwise.
Having said all that - it would also depend on how much it cost you
Roughly working it out, interest only at 7.740 would be around £420, whereas with the discount it would be approx £282, so about £140 a month over 2 years (assuming there was the same sort of deal available) £3360, take off the arrangement fee for a new mortgage so it probably cost you £2500? If it were me and I was persuing it I would probbaly be looking at at least half that to settle but I would be checking out if I had grounds to get anything first. Consumeractiongroup would be a good place to start though.

Oh - and should this not be in misc, feedback is for site issues, and you would probably get a better response in there!
#20
I put a written complaint into the company involved. it took them eight weeks to come back and offer me this £500. which I must claim within 14 days (a gesture of good will, ex-gratia payment, without prejudice)?????

They took a long time to offer this payment. which makes me think. ! is this a fair payment/offer?
#21
how do I put it in misc??
banned#22
I've just reported it so it should get moved
#23
colinsunderland
I've just reported it so it should get moved


thank you
banned 1 Like #24
miss money saver
I put a written complaint into the company involved. it took them eight weeks to come back and offer me this £500. which I must claim within 14 days (a gesture of good will, ex-gratia payment, without prejudice)?????

They took a long time to offer this payment. which makes me think. ! is this a fair payment/offer?


They can claim the offer is what they want it to be, but that doesnt change the fact its is an admition of guilt. If they have changed the terms on the paperwork you signed, this should have been pointed out. There is no doubt on what you have been told that you have been mis-sold a mortgage and it appears your only recourse is to make a claim through the FSA.

Its a long winded process (ie it takes ages) but I cant see how you can fail. It costs no nothing to do so, so you cant really lose. (I doubt very much even if the FSA ruled against you, they would not force the £500 settlement they have already offered.)

Dont let them get away with it. Make sure they get regulated else others will also be a victim of this company.
#25
guv
They can claim the offer is what they want it to be, but that doesnt change the fact its is an admition of guilt. If they have changed the terms on the paperwork you signed, this should have been pointed out. There is no doubt on what you have been told that you have been mis-sold a mortgage and it appears your only recourse is to make a claim through the FSA.

Its a long winded process (ie it takes ages) but I cant see how you can fail. It costs no nothing to do so, so you cant really lose. (I doubt very much even if the FSA ruled against you, they would not force the £500 settlement they have already offered.)

Dont let them get away with it. Make sure they get regulated else others will also be a victim of this company.



thanks everyone, I will be phoning the FSA tomorrow. Apreciating for all you coments and help. :friends:

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