Mortgage Broker Story 4 Simon

Mortgage Broker Story

It’s really long and complicated, but I’ll try to keep it simple.

Basically we asked for one thing and got the opposite.

We almost owned one house and then bought another to live in.

As we had only been self-employed for one year, we thought we’d employ a mortgage broker to arrange the finance for us. This mortgage broker was from a major company.

Our plan was this: Put our present house on the market, and if we get a good price – sell it, if not a good price- rent it out.

We told the mortgage broker our plan and asked for:
One loan to cover both mortgages, that could be split
Interest only
Redraw facility
Ability to make lump sum payments

We had sixty days to settlement
The first bank she recommended had exactly the right loan,we applied but came up slightly short as they would only lend 60% valuation on one year self employed.
That took two weeks off, six weeks to go.
The next best option, quote “The same loan and facilities just a slightly higher interest rate”, she faxes us a brochure that confirms this.
OK, we apply
After many calls, being told the loan is approved, the documents are in the mail, etc, etc
nothing happens!!(There are a whole lot of lies in this time, some of them you wouldn’t believe!)
Anyway, the day before settlement the documents arrive at 5pm by courier, they weigh about 3kg!
I am instructed to read them, sign them, have a stat dec signed and have the documents back to the banks solicitor first thing in the morning!

Well the loan is totally wrong;
It’s pricipal and interest
It is a fixed rate ie. no lump sum payments
Break cost fees for lump sums
(Our house had sold, there was going to be a huge lump sum payment!)
No redraw

so, I go into the city first thing in the morning to speak to THEIR solicitor, He says two choices

Delay settlement- It was already one day late at a cost to us of $200
OR
Hand in the documents and as the loan is totally wrong, get the broker to re-document it for you

well it had taken weeks to get these documents, $200 a day didn’t sound too good, and he made it sound like re-documenting the loan was an easy thing, so I handed them in

WRONG CHOICE

After settlement, the mortgage broker denied the loan was wrong. The only thing she would admit to was that it should have been interest only, that part has now been changed after ten weeks.

I have learn’t:
Always get independent legal advice
Never listen to someone else’s solicitor
Don’t be pressured into signing anything

I hope this makes sense,
Sue

By the way the break costs on the loan were over $4000!

Posted – 20/09/2003 : 10:45:53 AM

Be careful not step on the flowers when you’re looking at the stars