Get Help with Mortgage Problems

Questioner

Dear, Recently spoke to my mortgage advisor about increasing the mortgage. First we discussed the case by phone and then we sat down together. After the first phone call I provided financial data with which he did an income assessment and which showed that the increase should absolutely not be a problem. We did not even have to go to the notary because he had arranged a higher registration with the notary when arranging our first mortgage, he even came with us when we went to pass. The only thing that had to be done was to pay off the outstanding credit of 3000,-. This was done immediately and after receiving the termination of the credit an appointment was planned to get everything started. Here too, a higher income was tested, since there is an Employee Benefit Budget that is included in the income for mortgages. Again, the increase was a formality according to our advisor, especially now that the income was even higher. The sky was the limit, it sounded at our table. I asked if you have confirmation from the notary that there is indeed a higher registration, but I did not have to worry about that because he was convinced that there was a registration of 250,000 and our 1st mortgage was 203,000. The increase of 30,000 fits in here more than enough. I myself could not find this in our mortgage deed and from requested documents at the land registry it appeared that there was a registration of 203,000. Contacted the notary directly and he confirmed by email that there was indeed no question of a higher registration. Of course I immediately informed my advisor and indicated that this was a very unpleasant surprise and that it would cost an additional 700 euros. We would work this out and this had no effect at all on the increase. It was somewhat dismissed by saying that these costs were tax deductible after all. From here the whole increase has stalled. The calculations that our advisor made are completely wrong. The bank immediately rejected the application because he had calculated with incorrect interest rates and therefore it is not feasible. In the meantime the house has been valued and the appraiser was paid out of his own pocket for 500 euros. Also, because of all the promises from our advisor we could already start making plans at the kitchen store and make a possible down payment if this was necessary to keep the momentum going because in the renovation specification we had included an amount of 8,500 euros for the kitchen and since the amount of 30,000 was possible, the amount of 8,500 would not be a problem anyway. Based on good faith and the promises we eventually ended up at kitchen house Heerlen and discussed a few things and had a kitchen created that fits within the budget without being permanently committed to it. We did make a down payment so that the company could continue with the drawing and elaboration. As mentioned earlier, this was not a problem according to our advisor. We even showed the drawing of the kitchen to the advisor. But then came the aforementioned rejection from the bank, but the advisor had a solution by applying interest averaging for 10 years, which would calculate an interest of 1.85 (current deed interest is 1.89%, but there is only a residual interest rate of 7.5 years and the bank calculates with a test interest of 5%, our insurance agent had overlooked this twice). But by applying interest averaging this would be solved and I would get a lower interest. After a week without a quote and a lot of delay, I requested the STAZA from the bank. There I was told that they had not received a request, whereupon I immediately asked our advisor for clarification. He indicated that he had the request by email and that he was already calculating with an average interest rate of 2.028%. To which I say 2.028%? Last week it was still 1.85% and now I would also have to pay 150 euros for interest averaging and then get a higher interest than I have now, that is the world turned upside down. The answer was don't worry about the costs, that will be fine. The priority is that the increase comes around and through interest averaging this was not a problem. Again a promise based on hot air because from my own inquiries at the bank it turned out that they also do not agree with this construction because the average interest may not be higher than the interest that I am paying now. So it is going from bad to worse, which is why I am asking for your help, especially because 2018 was a super tough year, partly due to the premature birth of our son with 8 hospital admissions as a result, including 3.4 weeks in intensive care. We have therefore opted for a renovation and used our holiday pay to pay off the loan. I also have an email ready that I want to send to our advisor next week and I am prepared to send it to you as well. Thank you for your understanding and I look forward to your reply. Yours sincerely,

Lawyer

What an annoying situation. It seems very likely from your explanation that this mortgage advisor does not take his duty of care seriously. He reassures you with nice words, but the implementation and feasibility of the increase in the mortgage are still far from being achieved. There is quite a bit wrong with the duty of care that he must adhere to. A reasonable and reasonably competent advisor may be expected to do a lot. I advise you to hold him liable in writing for the current and future damage. Provide sufficient supporting evidence that points to the violation of his duty of care. If the advisor still denies liability, please contact me directly for consultation.