2 Rates Changes During Mortgage Switch - Just Suck It Up?

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eddiem74

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Ok, So I am switching mortgages from my current bank to IIB.

When I started the process via broker, IIB were offering 4.85% for 3 year fixed, then when I got the loan offer it had gone up to 5.09%. Over a week ago (probably longer) loan offer was signed everything was in, but apparantly IIB were waiting on some confirmation from the valuer which was provided last week on May 29th/30th.

Now after a long weekend, IIB change their rates again to 5.39%, and I now get the cheque sent out, and a letter saying, rates changed !!

I am feeling a bit screwed here, and kinda feel like they held off the cheque due to the upcoming rate change.

Do I just have to suck it up ?
 
Loan offers can generally (always?) be varied up until they are drawn down. Nothing you can do about it other than shop around.
 
Am just upset, I signed the loan offer on May 20, Solicitor said she would return May 21. On May 28 checked if Broker has heard anything or of any issues. May 29 Broker informed me everything sorted but bank with waiting on confirmation from valuer. This was provided either May 29/30. Bank Holiday weekend, June 3 IIB changes rates, June 4 issue cheque, and letter stating new rates will be applied. What a bummer... :(
 
eddiem74 said:
Am just upset, I signed the loan offer on May 20, Solicitor said she would return May 21. On May 28 checked if Broker has heard anything or of any issues. May 29 Broker informed me everything sorted but bank with waiting on confirmation from valuer. This was provided either May 29/30. Bank Holiday weekend, June 3 IIB changes rates, June 4 issue cheque, and letter stating new rates will be applied. What a bummer... :(
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Hi Eddie

Get your broker to chase this up. Usually the banks give a lead in time with rates issued on loan offers. At the end of the day he is getting paid and he may be able to sway things back in your favour. You are his client and he may have to do more for you in thge future. Banks tend to be pretty ruthless though. But the broker may be able to get something sorted for you. It can't hurt him to query it. It all depend as to when your loan offer was issued aswell. If you give me that date I might be able to provide you with a resolution

jonny
 
JWMB said:
Hi Eddie

Get your broker to chase this up. Usually the banks give a lead in time with rates issued on loan offers. At the end of the day he is getting paid and he may be able to sway things back in your favour. You are his client and he may have to do more for you in thge future. Banks tend to be pretty ruthless though. But the broker may be able to get something sorted for you. It can't hurt him to query it. It all depend as to when your loan offer was issued aswell. If you give me that date I might be able to provide you with a resolution

jonny
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Cheers Jonny, Loan offer was issued on May 15th by IIB, they then sent a revised letter on May 19th as they made a mistake. I met my solicitor on May 20 as per the sequence of events above.
 
eddiem74 said:
Cheers Jonny, Loan offer was issued on May 15th by IIB, they then sent a revised letter on May 19th as they made a mistake. I met my solicitor on May 20 as per the sequence of events above.
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Hi Eddie

I just double checked all my emails from IIB. On the 21st April the lender sent out corrispondence stating that on the 6th May if mortgages aren't completed they wouldn't honour that rate and it would increase to 5.09%......
Then On the 7th of May they released new rates 5.19 % in your case. The previous rate would only have been honoured until the 6th on then your rate would increase to 5.39%. So in effect you would have had one day to close on the 5.09% rate. It's ridiculous and of no reflection to your broker. The bank has been totally ruthless in this case. I've highlighted this with one of our directors and it will surely come out somewhere in the media as I have just compiled the information for him. To tell you the truth it's just not fair. I'm a broker and I'm there for the ordinary person but this sort of behaviour from the bank is out of order. Previously they would have given a run in time.

P.s If they had everything in before 3rd of june why should you suffer another rate increase. Definately get onto your broker you have a case for at least to take up the 5.19% rate. You shouldn't have to suffer because of IIB's inability to get all cheques issued before a deadline.

I hope this helps
 
Thanks Jonny, I was actually offered 5.09% on the May 15/19 letter of offer, so never seen 5.19% ?

And well to add to the saga, I have just had a good chat with my frustrated broker, who said IIB informed them of the new rates, and basically said any drawdowns after June 3rd would be on the new rate 5.39% in my case.

Given that everything was in with IIB she has lodged a request for a clear explanation as to what has happened. Apparently from what I am being told, IIB needed their valuer to confirm something with regard to the valuation they done on my property and an ordnance survey map. The valuer done this, and submitted it, however the valuer ommitted to place a comment on the map, something to the affect of "this is the property I valued" and this delayed things further, so all internal processes between IIB and their valuer.

In the meantime I am shafted by a rate change ?

The Broker, has asked them to clarify how this is my fault, and in reality a cheque could have been issued before the recent changes. She said she will see what they come back, and will then escalate as far as she can to try and have this reversed, but as you said, and she echoed, banks are being ruthless at the moment. Fingers-crossed..
 
Can you not pull out? What is the rate you are moving from - is it any longer worth moving the mortgage?
 
I am at the point of no return really, it was a switcher with a top-up, so to start the process all over again, I am not sure I want to do that with the speed that rates are changing, and a possible ECB hike next month. Plus I am sure my solicitor won't charge me nothing for starting again.

My solicitor is holding the IIB cheque until my broker gets a final answer from IIB, so I will hold out for that. Hopefully some good news will come today or Monday.
 
Not so - very bad suggestion. Legal contract is signed, money is drawn down - big breakage penalty likely if you effectively pay off what is now a live mortgage.
 
clubsandwich said:
Not so - very bad suggestion. Legal contract is signed, money is drawn down - big breakage penalty likely if you effectively pay off what is now a live mortgage.
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Not necessarily, it might be worth enquiring in light of the situation
 
clubsandwich said:
Not so - very bad suggestion. Legal contract is signed, money is drawn down - big breakage penalty likely if you effectively pay off what is now a live mortgage.
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Well my solicitor said she still has the cheque, not lodged. She indicated we could just return it, and look somewhere else if I wanted.
 
eddiem74 said:
Well my solicitor said she still has the cheque, not lodged. She indicated we could just return it, and look somewhere else if I wanted.
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Would a simple top up on your existing mortgage leave you with a better rate than what has been passed to you by the new lender?
 
Dave Vanian said:
What's the rate you've gone on to? Does your existing lender have fixed rate options?
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My existing lender (BOS) went to 5% when I came off the discounted rate. At the time IIB were offering 4.85% for 3 year fixed, and my existing lender would not match that. IIB then increased to 5.09% which I felt was still a decent rate during the loan offer process, however now that the cheque has been issued IIB squeezed in a late minute hike to 5.39% which I am still escalating with them via my broker, with the cheque still on my solicitors desk !
 
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