Unacceptable 'advice' from the bank?

[vikihayden101]

I am a young woman currently still living at home (aged 25) to save up in order to buy my own home. I have enough saved for around a 5% deposit on a modest 1 bed flat in the greater London area. I went to the bank for a mortgage meeting and the adviser asshole gave me the following advice;

'To buy alone you will need 15% deposit which from your saving rate will be another two years. Have you got any grandparents that are likely to pass away within that time? Are your parents able to give you the money?'

When I answered no to both of these outrageous questions, he proceeded to advise me to play the lottery!!!!!

AIBU or is this is the only advice for first time buyers? I was expecting a saving plan or tips on how to get a great credit rating, instead I got offensive and ridiculous 'advice'.

Well, you went for advice. Is he wrong that t will take you another 2 years?

I'd say he made a very poor judgement, he judged that you might have a sense of humour... and failed!

Go somewhere else and get a more staid acceptable version of that advice.

Oh, a mortgage advisor is not a savings or investments advisor. You went to the wrong person if you expected that sort of advice.

I think he was being very realistic... although I appreciate his delivery may not be to your taste.

I don't think that asking if GPs are likely to pass away is very funny!

PLay the lottery I would have taken as tongue in cheek.

Ask parents-duh who would think of that by themselves!

He may have worded it wrongly but he was trying to tell you that you need to save a lot more to be able to afford a property on your wage alone.

Also, mortgage adviser are just that,people who advise on mortgages so he was never likely to advise you on setting up a savings plan or improve your credit rating.

You don't say how much you earn but assuming you could borrow roughly 4 times your salary at most, is that plus your 5% deposit enough to buy a property in London? If so, I would go and see an independent mortgage broker, not an adviser tied to a bank or building society.

He's right though isn't he. You may have found the "joke" offensive, but very few will lend at 95% these days (plus the other costs of buying) and the problem is that property will get more expensive as you save. There are innovative ways that parents can help without handing over a wodge of money (being guarantor etc) or you could consider shared ownership if you qualify.

He might have been a bit cheeky, but the bank isn't the CAB or a financial management charity. They are a business and you clearly wasted their time by making an appointment with a mortgage advisor when you clearly don't have enough money to start proceeding (years away in fact). Sorry if that seems harsh.

I don't think talking about my grandparents dying is humerous, whether or not you have a sense of humour!

I went for advice having heard about 5% deposit mortgages being available, however I got no information on these from him. I just felt it was extraordinarily poor advice from someone who is supposedly qualified to give advice on the subject.

I think you are right, I should probably go somewhere else. If anyone has any suggestions on good banks in the UK for first time buyers, that would be wonderful.

Was it HSBC? Their mortgage affordability thing is crazy - I struggled to get £100k less than my agreement in principle despite handing over a spreadsheet that clearly showed I could afford interest rate rise etc.
Maybe he was trying to save you applying & failing and having hit to credit score albeit in an outrageously insensitive manner?

As i said earlier, you would be better going to an independant mortgage broker who will know which lenders are more likely to grant you a mortgage. They often have access to all lenders, no point going to a bank who can only advise on their own products.

A mortgage advisor would be more appropriate for you. Have you considered government scheme like help to buy etc? I am from the north west so a lot easier for us down here so please excuse me if such products aren't available xxx

We've had the other extreme of this. As we have equity in our house, the bank was trying to lend us far more than we needed when we did an extension. Having dealt with an interest rate of 15% when I first bought, I certainly wasn't going there. We borrowed much less that the bank wanted to throw at us, and even with that smaller amount I worry about the impact of an interest rate rise. But then the bank would be fine. I'd just have to sell my home to give them my money back.

The mortgage adviser seems to have been insensitive, but it's difficult to tell without knowing how the whole conversation between you went. On occasions like this, you have to make your discomfort be known.

What made you think that a bank would provide good mortgage advice? Have you been reading the financial advice in the broadsheets for a while now. It wouldn't take long to get a bit more clued up.

Advice on here, as always, impeccable.

If he'd spoken about my grandparents in that way he'd be nursing a broken nose by now. It's not in the least funny. It's downright bloody offensive.

Speak to a bank that does Help to Buy mortgages, they only require a 5% deposit.

He sounds like he was trying to save you from yourself in a ham fisted manner. Property prices are simply ludicrous compared to salaries. Take his advice, save more and wait for the inevitable crash.

Erm he was insensitive so in that respect YANBU but he may have mentioned the 15% because it's all done on affordability. Things like loans, credit cards etc all have an affect. Maybe looking at the sums they couldn't lend you the total 95%. Obviously I don't know your situation or numbers but really a mortgage advisor is not there to provide a "savings plan" or credit score tips he is there to advise you on mortgage affordability and wether you meet the current criteria.

If you want those things book another appointment with someone in the bank you have your current account with. They would be better placed to look at your previous statements and they will know more about how credit scores work etc. or even sign with experian and find out yourself.

For what it's worth both my banks have been extrememly helpful with mortgage affordability advice but I have to see different people for different things.

But YWBU to make a complaint based on the grandparent comment. What if they'd said that to someone whose grandparents had just passed away.

I agree an Independent Advisor would be better as they can access all sorts from all different sources.

I would also take a lot of his comments tongue in cheek - grandparents comment is a bit off but it is how most people seem to find the deposits they need these days.

Did you ask specifically about the 5% products? Most bank advisors I have always found to only want to talk about the products they want you to have not the ones you would like information on.

workingdilemma do you think there will be a crash? Im looking at the moment and house prices do seem ridiculous compared to a year ago but with the new pensions rules and the constant influx of foreign spending (i.e China and Asia buying up BTLs) im not sure I foresee a crash for quite a while. A flat in the worst part of my local area has just sold in three days for the full asking price (which is at least 10% overpriced!)

By the "Which Mortgage?" magazine. Told me everything I needed to know last time 'round.

buy - that should read

www.moneysavingexpert.com/mortgages/best-buys/

You can look here see what is out there and get other good advice - though it doesn't mean you'll qualify for the mortgages shown - even if you check out the banks affordability and qualifying stuff and come out wanting to borrow less than max.

Took us seven years to save a 25% deposit to get on the ladder it takes about another roughly 5 K in fees - saved significant amount each month- no inheritance - and prices climb right up till few months till after we bought.

I've read here the view that you have to inherit money but some us don't we just save like mad and wait and hope like bad no bad luck takes savings.

Frankly I avoid a bank as they can only tell you about their product. Look for a broker and then you'll get some rounded advice.

As sure as night follows day, there will be a crash. Unless we get hyperinflation in salaries/wages and stagnation in assets, it'll come. The demographics of this country assure it. Either that, or its social unrest on a massive scale. The youth are stuffed and are already almost completetly priced out of normal life - forced to pledge most of their lifetime earnings to take on a mortgage on a 1 bed flat?. Either way - might take a while, but i can wait. Personally i refuse to participate in this madness.

My landlord is effectively paying me to stay at his place when i consider what it would cost to buy the silly pile of bricks. Look at spreading your assets outside of property.

It was clearly a little bit tongue in cheek - he is a person not a machine. It clearly was not intended to be offensive. You went to see him without having anywhere near what you need to get a mortgage. He told you the facts and then to let you down lightly/ create a light atmosphere/ have a little human to human communication he made a joke. You didn't like it.

I can understand that if you have grandparents who are currently ill it could be upsetting but everything is upsetting to someone.

Good luck with your savings OP