Broker Dropped the Ball

[jimmycw]

Hey all, 

This last re-mortgage I could smell the rate rise a mile off.  So while the fixed period doesn't end until March '23 I saw an opportunity to lock in a fix early, in September '22.

My broker KNEW this was the plan and yet when I received the mortgage offer from the lender the offer expired the week prior to our current fixed period ending.  We'd got a good rate (3.18%), but have to pay an early repayment charge (£~2k) for the sake of a week.  

He then claimed there was a "work around" with Barclays where you could get the deal extended, but they conveyancer shot the idea down.  Now he's ignoring me. 

He has been reliable up to now, but thinking I should put this one down to experience and get rid for next time.  What does everyone think? 

Anyone got a recommendation in the Cambridge area I could look into?

Cheers,

James

 

[astonthemortgageguy]

Hi James,

Sorry to hear about your situation, hopefully all is not lost and that rates may drop between now and when your current rate expires - they may not drop down to the 3.18% you have already, but they may drop by enough to make it worthwhile not paying the £2k penalty. 
 

Mistakes can happen, but to then ignore you after is a bit off - hopefully one way or another you get things sorted. 
 

Aston

[jimmycw]

Follow up on this.

Barclays couldn't help by extending the mortgage offer. But they did tell me that in their case, they waive the ERC where it falls in the last 30 days of the initial period.  Good to know. 

Santander were also helpful. They suggested that they might be able to do something if it's within 10 days of the end of the initial period.  I'm just waiting to hear back from them.  Will update here when I know for sure. 

[Lilla D]

Just to add to the "good to know" list: Barclays' mortgage offer is valid for 6 months from the day of submitting the application, not from the day of issuing the offer like most lenders. As such, the Barclays application shouldn't have been submitted until the first days of October, which would have meant losing out on the 3.18% rate... Instead, the broker should have recommended a different lender and deal to you amidst the chaos at the end of Sep.

Re Santander, please do let us know, if you manage to avoid the ERC payment, as I haven't heard of any bank waiving their ERC when remortgaging to another lender ahead of time. 

[jimmycw]

A further update.

Santander are willing to waive the ERC as it's within 10 days of the end of the fixed period.  Good news for me, interesting information for you. 

I have another 5yr fix with Santander and I've had a current account with them for years, so I don't know if that factored into their decision at all.  It's possible there might be more information once I actually receive the letter. 

[Lilla D]

Thank you for the update - indeed, good to know  As you say, it might have helped that you actually banked with them and had another mortgage with them.