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We arranged for our mortgage to switch to a new product (with the same lender) on 1 April through a large, well‑known broker. All the paperwork was completed in February, and we were told the new rate would automatically take effect on 1 April with no further action required from us.
For context, I hadn’t realised we would be staying with the same lender. The broker contacted us because we had used them previously, and after reviewing our circumstances they advised remaining where we were. I’ve since been told that at this point, I should have gone direct rather than using the broker, and I’m now wishing I had.
When I logged in on 1 April, I discovered we had been moved onto the lender’s SVR instead. I called the lender, who confirmed they had no record of a product switch. I then contacted the broker, who investigated and admitted the error was on their side.
As things stand, we are stuck on the SVR until at least 1 May. It also appears possible that the lender may no longer honour the original rate we secured. The broker is trying to get it reinstated, but this is not guaranteed. They acknowledged the mistake and, without any prompting, raised the issue of compensation and outlined what they expect to reimburse.
I’ve created a spreadsheet to calculate our losses, though I won’t know the full amount until I know what rate we eventually end up on. The equivalent product is now 1.4% higher than the one we were supposed to switch to. If we move onto this on 1 May, we will have spent a month on the SVR. I estimate the additional interest over the term would be around £3,000, with roughly £2,200 in higher monthly payments.
I’m also concerned that the new product may run beyond the original end date, meaning I would want the ability to exit at the correct time which would require the ERC fee covering.
The broker has started their complaints process. They say they will begin investigating within 7 days and that it may take up to 56 days. After that, I can escalate to the FOS.
My questions are:
1. What should I reasonably expect the broker to compensate me for?
My understanding is that the aim should be to put me back in the position I would have been in had they not made the mistake. That would include the extra interest and higher payments. I’ve been told that expecting them to cover an ERC so I can exit at the original date may not be considered reasonable.
2. What happens if I’m not satisfied with their offer?
I’ve read that the FOS is more consumer‑friendly and can award compensation in ways a court cannot. I’ve also heard conflicting things: that going to the FOS first can harm a later court case because the court may look at the FOS decision, and that you cannot go to the FOS and then go to court at all. I’m not sure what is correct.
Any guidance on how to proceed if I’m unhappy with the broker’s final response would be greatly appreciated.
For context, I hadn’t realised we would be staying with the same lender. The broker contacted us because we had used them previously, and after reviewing our circumstances they advised remaining where we were. I’ve since been told that at this point, I should have gone direct rather than using the broker, and I’m now wishing I had.
When I logged in on 1 April, I discovered we had been moved onto the lender’s SVR instead. I called the lender, who confirmed they had no record of a product switch. I then contacted the broker, who investigated and admitted the error was on their side.
As things stand, we are stuck on the SVR until at least 1 May. It also appears possible that the lender may no longer honour the original rate we secured. The broker is trying to get it reinstated, but this is not guaranteed. They acknowledged the mistake and, without any prompting, raised the issue of compensation and outlined what they expect to reimburse.
I’ve created a spreadsheet to calculate our losses, though I won’t know the full amount until I know what rate we eventually end up on. The equivalent product is now 1.4% higher than the one we were supposed to switch to. If we move onto this on 1 May, we will have spent a month on the SVR. I estimate the additional interest over the term would be around £3,000, with roughly £2,200 in higher monthly payments.
I’m also concerned that the new product may run beyond the original end date, meaning I would want the ability to exit at the correct time which would require the ERC fee covering.
The broker has started their complaints process. They say they will begin investigating within 7 days and that it may take up to 56 days. After that, I can escalate to the FOS.
My questions are:
1. What should I reasonably expect the broker to compensate me for?
My understanding is that the aim should be to put me back in the position I would have been in had they not made the mistake. That would include the extra interest and higher payments. I’ve been told that expecting them to cover an ERC so I can exit at the original date may not be considered reasonable.
2. What happens if I’m not satisfied with their offer?
I’ve read that the FOS is more consumer‑friendly and can award compensation in ways a court cannot. I’ve also heard conflicting things: that going to the FOS first can harm a later court case because the court may look at the FOS decision, and that you cannot go to the FOS and then go to court at all. I’m not sure what is correct.
Any guidance on how to proceed if I’m unhappy with the broker’s final response would be greatly appreciated.
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