Mortgage query

Shannonsider

Hi folks,I took out a 100% mortgage 4 years ago through a broker. We had ruled out a fixed mortgage as this was more expensive and I had an idea rates might drop. So it was between a tracker or a variable.At the time I was only coming to terms with all the mortgage jargon but I distinctly remember thinking a tracker was a no brainer, as it was tracked to the ECB rate and the bank would not be able to raise rates as they please. Anyway, to my dismay we have a variable rate mortgage and have been subject to 2 rate increases in the last 3 months. I've been trying to go through my emails/communication with the broker (who organised the whole thing) to see if I specified anywhere that I wanted a tracker. As far as I can remember I had a meeting with the broker and advised I'd wanted a tracker mortgage but I've nothing in writing.I'm pretty sure I know where I stand on this but do I have any comeback with regards to the broker not following my intention or mis-selling (as a tracker seemed like a no brainer at the time), I was under the impression we were getting a tracker. I know I signed the contracts and the broker is not really to blame, but I'm just wondering if I have any comeback or if anyone has found themselves in a similar situation?

Drumpot

I cant speak for the Broker or what exactly happened at the time but I can take a stab !

You need to find those correspondence. Are you sure that you were offered a tracker mortgage ? Cant remember an awful lot of them being offered to people taking out 100% mortgages.

Not just that, I dont think that people were being offered ECB +1 on 100% Mortgages. At the time it might of been ECB +2% (or 2.5%) and the variable rate may of been significantly cheaper.

While you may feel now it was a no brainer, when interest rates were higher (and introductory variable rates very competitive), when you were just getting a mortgage and house prices were going up, it might of sounded like a good idea on taking a variable rate that was costing less then the available tracker.

adcom

Hi Shannonsider,

I used to work for one of the larger banks part time in college specifically in mortgages so I know how the bank I worked in operated.
Sorry about this but it really doesn’t matter what you told the broker. Unless he passed the information on to the bank then there is absolutely no come back with the bank. If it was not written down on the application that shannonsider wanted a tracker the bank would not have known to put you on one.

What you do is root out a copy of the contract/application. If you don’t have it phone the bank- most of them have applications scanned on file so even someone on telephone banking should be able to read it out to you. Certain banks, the person can just print out a copy and post it to you if you ask nicely (the telephone banking department I worked in did it all the time with various things).

So contact your bank.

Also contact your broker- he may have sent a communication stating your preference for a tracker to the actual bank- or he may have a copy of a letter that was sent stating that intent.

When you got your mortgage things in the bank were mad (trust me) so it could have been something that was overlooked.

And one more bit of advice- when on the phone to banks etc- you get a lot more with sugar than vinegar!! Plus- take the name of the person with whom you were speaking- always V important for any follow up!!

Good luck!

dotsman

Definitely review your mortgage contract. On it it will clearly state what type of rate you are supposed to be on. Ultimately, this is the only document of relevance. You can have asked for anything, but the contract (which you will have gone through with your solicitor in detail and signed) is the only one that matters.

If the contract states you should be on a tracker, then bingo, you are in luck (and most likely due a refund). If it doesn't, I'm afraid I can't see you getting anywhere.

amdublin

I agree with Drumpot.

While everyone now thinks oh god to be on a tracker, it really depends on the tracker rate you were being offered at the time.

As Drumpot said variable probably was much cheaper at the time.
Particularly if you were being offered ECB +3% or ECB +4% or ECB +5%......who knows????!!!!

If you said you wanted a tracker rate why would the broker not pass this on to the bank. Why would (s)he tell the bank you wanted a variable if you specified Tracker. Makes no difference to the broker.

All this is surmisation: you in particularly are surmising what you think you remember, all in hindsight after variable rates are going up.
You need to find documentation to prove what you "think you remember".

Drumpot

amdublin wrote: »

I agree with Drumpot.

While everyone now thinks oh god to be on a tracker, it really depends on the tracker rate you were being offered at the time.

As Drumpot said variable probably was much cheaper at the time.
Particularly if you were being offered ECB +3% or ECB +4% or ECB +5%......who knows????!!!!

If you said you wanted a tracker rate why would the broker not pass this on to the bank. Why would (s)he tell the bank you wanted a variable if you specified Tracker. Makes no difference to the broker.

All this is surmisation: you in particularly are surmising what you think you remember, all in hindsight after variable rates are going up.
You need to find documentation to prove what you "think you remember".

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