Switched Mortgage & got stung big time

[markermarker]

Has this happened anyone else? Went through a reliable & well known (in my area) broker to switch my mortgage. Applied to Ulster Bank for 3yr fixed @ 4.65% Got all documentation through to them & when everything was signed & sealed they came back with a rate of 5.25%. How the hell can this happen? I dont know too much about this, thats why i went through broker - he says theres nothing he can do. Is there anything I can do. I feel really stupid now - thought I was getting good advice & a good deal. Should have stayed with my original bank. Also €1k to switch hasnt arrived yet and broker says i could be waiting another few weeks. Any advice appreciated.

 

[CCOVICH]

One possible explanation-rates went up between when the original offer was made and when you actually finalised your switch. Not much your broker can do about that. 4.65% sounds quite low for a 3 year fixed rate at this point in time.

 

[Stephenkelly]

The rate of 4.65 was pulled thr rate overnight due to over subscription (because it was such a good rate) without any prior indication to brokers e.t.c. It was a discraseful thing to do and it upset a lot of clients and brokers. Usually if banks pull arate they will tell the broker and in advance to give them a period of time to close the deal.

5.25% is one of the better rates currently.

 

[MrKeane]

I received the €1000 switcher bonus in the last couple of days. I have only had a good experience with Ulster bank between switching a mortgage and principal bank account to them.

 

[ClubMan]

The rate of 4.65 was pulled thr rate overnight due to over subscription (because it was such a good rate) without any prior indication to brokers e.t.c. It was a discraseful thing to do and it upset a lot of clients and brokers. Usually if banks pull arate they will tell the broker and in advance to give them a period of time to close the deal

Are there grounds for complaint here - either to/about the broker, the ultiamte mortgage provider and - eventually if necessary - to the [broken link removed]? While the terms & conditions probably provide for such last minute rate changes it doesn't seem fair for the borrower not to be even notified. Personally I would kick off a complaints process with the broker and/or lender and take it to the FSO if necessary.

 

[techman]

Markermarker,

What did it cost you in legal fees and outlays to switch?

Doing a switch at the moment.

 

[mf1]

"Are there grounds for complaint here - either to/about the broker, the ultiamte mortgage provider and - eventually if necessary - to the FSO? While the terms & conditions probably provide for such last minute rate changes it doesn't seem fair for the borrower not to be even notified. Personally I would kick off a complaints process with the broker and/or lender and take it to the FSO if necessary."

To be fair - fixed term offers are always stated to be fixed as at date of drawdown. Given the fact that there have been several rate changes, I don't really see the issue.

And from OP it does seem as if he was notified of rate change possibly before drawdown thereby allowing him not to proceed if he so wished.

mf

 

[techman]

The OP may be entitled to a cooling-off period of 14 days?

This applies to some financial products.

Don't know if it applies in this case.