Bad advice from IFA ?

If you've ended up with a mortgage which is more expensive than the one originally agreed and recommended then you have grounds for a complaint. If the IFA uses a computer system and it's wrong, that's not your fault. He really should have checked with GMAC that the product he was recommending was valid.

You need to write to him formally and set out your complaint and await his reply.

Rob Graham

Seek compensation from the IFA.

There is no question that they have given you bad advice, nor do they appear to be disputing that the advice is bad. Their admission that there's been a 'computer error', (where have we heard that before?) is tacit admission that they have screwed up. Note *** THEY** have screwed up, not you.

The fact that they can't drive their computer system correctly, so that it gives the right results, is not your fault.

Furthermore, if they come back and confirm that their computer screens were showing the numbers they gave you, then point out that in that case, it's they who have a problem with GMAC, and they should seek redress from them. In any case they're presumably in a much stronger position vis a vis GMAC, because of their continuing business relationship with GMAC who will be less likely to want to upset an IFA who puts business their way. Not that that alters the facts, but it's a commercial bargaining point between them and GMAC which you don't have.

Let us know the outcome. Good luck.

Rgds

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________

We've already started the official complaint procedure and had a "nice" letter saying that it was computer error etc and as a goodwill gesture offering us a refund of the survey fee, this refund coming from the IFA, its at this point we are suspicious as to how much they screwed up, or are they doing the right thing and we are being treated fairly

the refund and mid-range 2nd mortgage offer makes the 2 year payments similar - though the IFA have not admitted their fault, blaming the computer system they use as a 3rd party piece of software.

we hope to exchange today or tomorrow and don't wanna jeopardise the mortgage at this late stage - stress levels are high enough :) but we both feel the IFA are probably getting away with something they shouldn't

You should write back to the IFA stating that you are not satisfied with their offer and asking is this as far as they will go. If they won't do better then ring the Mortgage Code Arbitration Service on 020 7421 7444 and ask for forms to start the arbitration process. This institution and contact number should already have been given you in a written complaints procedure that the IFA should have given you at the outset of this complaint.

What the MCAS will say to the fact that you've gone ahead with the mortgage anyway is anybody's guess. Personally I don't think they can blame you, but they may well ask you what you would have done if you'd known what the GMAC interest rate actually was rather than what you were told it would be. You may well gone ahead anyway. Is there another lender who would have done it cheaper?

Rob Graham

This was one of our complaints, in that who knows who we would have gone with from the outset if the mortgage information had been correct, as we we're mis-informed of what was available to us.

As far as reasons for going for the mortgage, the simple answer we would give is that we risk the loss of our purchase if we have to go through the whole mortgage application again, along with loss of Survey fees and incurring more.

I'm thinking I'll go down the route you mentioned, that we are disatisfied with the offer made, and take it from there.

Many Thanks for all advice, it does all help

Good luck!