Help! Given Bad advice on mortgage hgtelds

#1
I'd like to know if I have been mis sold a repayment mortgage. My wife and I applied to take out a joint repayment mortgage with a building society five years ago, my wife was refused on the grounds of having missed one monthly payment to a high street retailer a few years ago, therefore her credit check had returned negative. We were informed by the building society that if my wife cleared the small debt to the retailer then her credit check would be clear but it may take to a year to do so. My wife duly paid the debt and within a year her credit check did indeed return clear. However the building society told me that in the meantime I could take out the mortgage in my name only then add my wife at a later date when her credit check was clear. I was told "you can add her to the mortgage later on there will be no problem with this".

Two years later I decided to do this but was told by I would need to instruct a solicitor. I contacted my regular conveyancing solicitor and he told me that he could do what was needed but he would have to re apply for a new mortgage in both names and there will be his fees on top, this will amount to hundreds of pounds.

My wife and I decided to leave it as it was for the time being and my wife took out independent life insurance to cover the outstanding mortgage, however this has now expired so we therefore wish to add her to the mortgage instead again. I phoned the building society and actually spoke to the same guy who sold us the original mortgage and informed him that I felt he had mis lead me in the first instance, his answer was that "although it may cost you today to add my wife to the mortgage it may not have done five years ago, times change things, we cannot foresee the future". On top of this I have also just found out I have no life cover on the mortgage I assumed I had.

I feel duped, advice appreciated please

#2
Firstly, paragraphs are your friend.



Secondly, duped is a serious word and you need to move on from here as I personally cannot see any grounds for a complaint.



You wanted to buy the property, whilst obviously he did not explain this brilliantly at the time; his advice and execution allowed to purchase the property.

#3
I don't understand ? Your wife had a default ( not just one missed payment that was paid at the time ) hence she could NOT go on the mortgage at that time. You had a choice, get the house in your name or not get the house. You chose to get the house. Are you seriously suggesting you would have given up the purchase unless your wife could go on the mortgage? She can go on the mortgage now. Of course it would cost as the deeds etc would need to be amended.

#5
The only costs I can see are the solicitors which would be for a Transfer of Equity.

Those fees are not chargeable by the lender and so whilst the advisor probably should have told you there could be external costs, I do not think they are under any obligation to do so. When I worked for a bank we did as it formed part of the "script" we went through.



With regards to the life insurance, what made you assume you had it? It will be more expensive now than 5 years ago probably but you ave saved on 5 years worth of premiums.

#6
Actually I can see the original posters point of view.



1, he wasn't made aware of any potential future costs when the advice was given

2, was he tied into a certain rate deal which may have made it less competitive when the time came for him to add his wife to the mortgage



This is just typical of the service of a high street lender adviser. All he saw was the short term solution, and how to keep the business for himself and his employer. I don't suppose the option of going elsewhere so both applicants could be on the mortgage from outset was even brought up?



I really feel for the op's wife, being made to feel bad and forced into a situation where she does not jointly own her home must be an emotional blow.



I think on the basis of what OP has said is he has not received the correct advice at outset as it was not in the bank advisers own interests

#7



Actually I can see the original posters point of view.



1, he wasn't made aware of any potential future costs when the advice was given
Originally posted by MortgageMamma


...assuming he is correctly quoting in full what he was told five years ago, of course. But I think it ought to be obvious that the "no problem" refers to the lender offering a mortgage, not that there wouldn't be any paperwork or costs involved (which I would regard as "normal" rather than a "problem" anyway).

#8
Sounds frustrating however I'd be surprised if a complaint would be successful here.



If you could go back in time would you rather lose the property than do a sole application?

#9
If an independent Mortgage Adviser failed to advise on future legal costs we would get our wrists slapped! I don't see why the bank adviser shouldn't be held to the same high standards.



This is what drives me bonkers about people walking into banks for their mortgages, things get missed and the bank adviser only thinks of the sale and whats best "for now"

#10



However the building society told me that in the meantime I could take out the mortgage in my name only then add my wife at a later date when her credit check was clear. I was told "you can add her to the mortgage later on there will be no problem with this".


Nothing wrong there.






Two years later I decided to do this but was told by I would need to instruct a solicitor. I contacted my regular conveyancing solicitor and he told me that he could do what was needed but he would have to re apply for a new mortgage in both names and there will be his fees on top, this will amount to hundreds of pounds.


Personal choice. No issue there.






I phoned the building society and actually spoke to the same guy who sold us the original mortgage and informed him that I felt he had mis lead me in the first instance, his answer was that "although it may cost you today to add my wife to the mortgage it may not have done five years ago, times change things, we cannot foresee the future".


Nothing was actually wrong with what was said years ago. it is possible that the clerk didnt know what fees would be charged externally. However, it is all academic.






On top of this I have also just found out I have no life cover on the mortgage I assumed I had.


Maybe the clerk wasnt authorised to do life cover. However, you have spent years not paying for it and you are still alive. So, you have saved money (unless your health has got worse). It also doesnt say much for your finances if you thought you had life assurance but there is no payment going out. How did you think you were paying for it?






I feel duped, advice appreciated please


Unlikely. Probably a mixture of verbal conversations made 5 years ago with memory recollection getting in the way. So much is talked about when arranging a mortgage that you are lucky if a third of it sticks in the memory just a week later.



Seeing as the option was to either have the mortgage in your own name or have no mortgage, it is unrealistic to think you would have chosen no mortgage.



I know you want us all to say you have a case but we dont have the emotional attachment you have and you really have little to indicate any wrongdoing. it is effectively a complaint about something that may or may not have been said 5 years ago but no way to prove it either way and even if you could, it really wouldnt have made any difference.

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