angrynorth

Long one, my apologies.

Recently applied for an increase to our current mortgage to enable us to move to a bigger house. All was going fine, the FA told us the amount we could have, we were happy with the repayments and terms etc. So we said go ahead with it.

This morning however, we received a letter telling us that we could only have a significant amount less than what the FA had told us.

Now I wouldn't be bothered, but this FA told us explicitly and on a number of occasions that he had confirmed the amount we could have with the underwriters several times and that we were fine to get the ball rolling on what we thought would be our new house.

So we packed up all our stuff, ready to move out of our (now sold) current house, and made commitments based on this guy telling us that everything was going through perfectly and he had personally confirmed with the underwriters exactly what the deal was.

So we are sat in limbo, thinking we will have to get a new mortgage with a new lender and pay the penalty fees etc if we still want to go ahead with this house. If we decide not to go ahead with this house, we look like a pair of prize ****** for wasting the sellers time, and we feel like **** because we had put all our hopes into this house.

What is the procedure for making a complaint about an FA and what is usually the outcome? I hate having to complain about stuff and put peoples jobs at risk, but this guy has consistently taken the **** with us and I would like to make sure he know its not right.

Abdabz

Yes all IFA's are regulated by the FIA or Sesame as I think its called - Me al fellas an IFA - damn good one too - Im not biased - PM me anmd I'll get some propoer informatino for you if you struggler with finding Sesame of the IFA.

P

fast bloke

Who was the lender
Is the advisor an IFA or Tied agent
Did you get an offer of mortgage before you signed contracts?

angrynorth

Lender = First national (I know, but their rate was excellent at the beginning)
Normal IFA
I may have explained incorrectly, we put the offer in on the new house on the basis of what the advisor told us. We haven't got as far as contracts yet, although the solicitors are working on that. We have arranged to move out of our current house a couple of weeks before the deal for the new one had completed. Surveys are done on the new one which we are liable for the cost of.

Tiggs

lol.....nonsense, in true SN style.

Abdabz

LOL - and what be nonsensical except for my spelling?

Abdabz

OK its the FSA

"An Appointed Representative of Sesame Limited which is authorised and regulated by the Financial Services Authority"

I knew what I meant?

Dont mess with the FSA

Tiggs

dont have the energy to discuss work for free.......if you see Big Bird let me know, or is that seasme st?

fast bloke

First National have done this on me before. They have reduced the amount on offer for one of two reasons - either your income multiples don't stack up or the house has been valued at less than expected. If it is the first, then your advisor should have picked that up early on. If it is the second, the only way to find that out is by having the survey and valuation done.

I would make a complaint directly to the advisor that his advice has cost you money. There is a chance that he will give you back the valuation fee. If he won't, ask him how you should go about making a formal complaint - it'll keep him in paperwork for ages

Tiggs

and get a new IFA on the job ASAP.....assuming you went miles out it should be saveable by someone with half a clue.

T

angrynorth

Cheers fast bloke, I think it is the first situation. I've calmed a little bit now anyway, I think I will give him a ring and make my discontent known. Like I say I wouldn't be bothered if it wasn't for the fact that he had said that it was all confirmed. If I would have known earlier, we wouldn't have been bothered and would have set our sights on cheaper houses, but he built our hopes up, reinforced them and then deconstructed them.

Robert Rosario

First National should have issued your adviser with what is known as an AIP (agreement in principle). If they did, and this confirmed the amount that could be borrowed, and then First National go back on this based on what you told them, then this is not the "fault" of the financial adviser, but the "fault" of First National.

angrynorth

Either way, whoevers fault it is, it still leaves us in the mire, and considering we had no contact with First National, it remains his fault for not getting his facts right before confirming them to us.

Robert Rosario

True, if he confirmed everything to you without checking it out, he should be fully accountable for his actions.


Good luck with sorting it all out.

Andrew Timmins

When I last used them First National did not have an agreement in principle service, you had to send in a full application before credit checks etc. were done. Perhaps you have financial commitments such as loans and credit cards the advisor was unaware of. If this was the case First National may have limited how much you could borrow.