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Original poster

Mortgage broker has fucked us

31 replies

Cheekylittlenumber · 24/02/2018 13:22

Posting for traffic. It's a bit complicated but will keep it brief.

Back in Nov of last year I approached my mortgage broker to ask if it was a possibility to get an increased mortgage as we were looking to buy a bigger house. I'm on mat leave with DD2 so we thought it was unlikely. Mortgage broker said it would be fine and that id just need to get a letter from my employer to confirm my salary etc.

During this time he said he could also fix my current mortgage at a lower rate and then carry the mortgage over to the new property when we purchase it. Ideal we thought!

Fast forward to this morning and we received a completion statement from our solicitor which includes a £7.5 k early repayment penalty.

We were told that we were moving the 'mortgage product' across and wouldn't incur any early repayment fees. But looking at the paperwork for the new fixed rate mortgage it seems we've been charged the high fee.

Do we have any comeback? I've left a message with him and emailed him we probably won't hear till Monday. We're completing Friday and don't have the £7k- I really hope he can resolve it somehow. Feel sick with worry. Anyone been through similar?

OP posts:
LIZS · 24/02/2018 13:24

The fee may be added to the balance. Did you pay initially to fix ?

NorthernLurker · 24/02/2018 13:25

Worst case is they add the fee to the balance.

Kerberos · 24/02/2018 13:26

Could be an error anywhere in tbe process. Let the mortgage broker have a chance to investigate before you go in all guns blazing

Annette1234 · 24/02/2018 13:26

We we moved we were charged the repayment fee but were given it back a few days later as a goodwill guesture by the mortgage company as we stayed with them.

loveka · 24/02/2018 13:31

A broker gave us incorrect information too. Cost us 1200 quid so not as much as you.

There was no come back as the information was verbal, not written.

Lottbarn · 24/02/2018 13:36

We did similar and we were charge "d the early repayment fee but then got it back once we completed on the new property as the new mortgage was with the same bank, so once it was clear we ported it rather than paid it, the amount was refunded.

MsBekaa · 24/02/2018 13:38

contact the mortgage company - it's possible that you have to pay it but then they'll reimburse it if you are porting. That's what nationwide told me a couple of weeks ago anyway.

theduchessstill · 24/02/2018 13:39

Something similar happened to me when I did a transfer of equity. It turned out the solicitor was at fault (no broker was involved) and the fee was refunded. I would go very carefully through all the paperwork you have - did you get an offer on paper from the mortgage company? That would state whether or not you had to pay a fee.

tootiredtospeak · 24/02/2018 13:39

Usually if its the same mortgage amount same company same rate and you simply move it to the new house you dont have to pay it. That said it may still be quoted in paperwork in case the new house didnt go through. Sounds like a mix up somewhere.

AnnieAnoniMouse · 24/02/2018 13:41

Try not worry over the weekend.

Most mortgages are ‘portable’ so you are highly unlikely to end up paying it and IF you do it can be added to the mortgage, you won’t have to find the money now.

Honestly, try not to worry.

jkl0311 · 24/02/2018 13:42

You must have the t and c you signed to go ahead with the lower fix it will have it on there. May be an expensive lesson but always read thoroughly before you sign anything

dontknowthesedays · 24/02/2018 13:42

We had the same. Our solicitors were trying to add the early repayment fee to our fees due when we sold, but upon speaking to Santander they either don’t charge it full stop, or if you are porting the mortgage they refund the money a few days after completion.
Does it say in the small print that this fee is payable if you are porting the mortgage? As normally it isn’t payable in these circumstances.

Amanduh · 24/02/2018 13:44

When we dis it it came up at the end and then because we were porting it got taken off.

JoJoSM2 · 24/02/2018 13:45

I don't contact the bank. It could be an error. Did you check the conditions of portability of the mortgage that you fixed in November? And read what you were signing?

DelphiniumBlue · 24/02/2018 13:48

The solicitors will go by the redemption statement sent to them by the mortgage company. So " the solicitors were trying to add the early repayment fee" is putting the blame in the wrong place.
OP, it's possibly an error by the mortgage company. Check the paperwork from when you took out the new mortgage, and ring the lender. Speak to your solicitor and explain the problem, and they will also contact the lender on your behalf.

AtomHeart · 24/02/2018 13:55

Sorry to state the obvious but you need to check your previous mortgage offer to see if there was an early redemption fee. It will tell you on that. Dig it out.

AtomHeart · 24/02/2018 13:59

Sorry, just realised what you've done. If you are carrying it over, rather than getting a new product, I can't see why there would be a redemption fee. Are you sure you have carried it over?

Lemongingertea80 · 24/02/2018 14:01

Nationwide tried to charge us a fee when we moved but then refunded it so it was only on paper in the end. Definitely challenge it and make a big fuss. If the promise by the broker that you wouldn't be charged was related from the mortgage company... Their phone calls will be recorded.

Eminybob · 24/02/2018 14:09

If you are porting your current product you won’t be charged and ERC, it is probably either an error on the redemption statement, or it’s automatically generated on the statement then either waived or refunded on completion.
If your offer has the details of the ported product on then it will be fine.

Cloudhopping · 24/02/2018 14:10

This happened to us in August. we were also porting our mortgage and using a broker. I can't quite remember the details but it was easily rectified with a call to our broker. It was something along the lines that they show it on the statement then reimburse/waive it as you're staying with the same company.

ElsieMc · 24/02/2018 14:33

I worked in conveyancing for many years. When mortgage offers came through, the paperwork was always looked at and we would write out to clients if there were fees this high attached to the offer. Just in the same way we would write to the client when we received the paperwork on the property eg if there were rights of way etc or covenants. Your solicitor has a duty to the bank and to you as the client.

A completion statement prepared by your solicitor is simply money in and money out on your remortgage. The £7,500 fee must have been shown on the final redemption figure by your bank/building society which is made up to the date of completion of the new mortgage - so the issue is there and it will have been included by the legal staff preparing the statement.

Try not to worry op and I would ring your solicitor and mortgage broker on Monday. I hope this will resolve itself.

plimsolls · 24/02/2018 14:35

This exact thing happened to me and it turned out to be an error. The broker got it sorted in about 90minutes.

Original poster
Cheekylittlenumber · 24/02/2018 15:21

Thanks everyone- god I hope it's either an error or the fee will be waivered.

I want to dig out all the paperwork but we're frantically trying to pack whilst looking after two kids. I think I need a drink!

OP posts:
AnnieAnoniMouse · 25/02/2018 12:28

How are you getting in today? Moving with small kids is always such fun 😊

...NOT 😖

☕️ For now....

🍺🍷🥃🍹🍸 for later!

Original poster
Cheekylittlenumber · 26/02/2018 17:01

For anyone who's interested thankfully this is all sorted now- the lender made a mistake and included the penalty by accident- phew!

Thanks to everyone for their help! X

OP posts: