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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10915
Experience:  Solicitor with 5+ years experience
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In brief, I used a mortgage broker called Trafalgar Square

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In brief, I used a mortgage broker called Trafalgar Square Financial Planning Consultants to apply for a Let-to-buy mortgage. When the original application was submitted I also gave details of a property that I was looking to purchase, which was satisfactory to Trafalgar. When I finally got the valuation the lender could not give me the loan amount requested, which also meant that I could not purchase the house I originally intended. So I asked Trafalgar Square Financial Planning Consultants if, I could purchase a house at auction to which I have evidence in three separate emails, which stated that was acceptable. Once I purchased the property at auction, Trafalgar then decided that this was not acceptable and the lender would no longer lend based on this new property. Trafalgar attempted to secure a bridging loan, so I would not lose the auction property but left it too late. The vendor has since rescinded the contract and taken my deposit of £4050 plus £474 auction fees and £499 broker fee. We asked for compensation from Trafalgar. They State that they have no responsibility.
we are now £5023 out of pocket with nothing to show for it? we have spoke to the FSA but they do not regulate these type of mortgages?
Submitted: 10 months ago.
Category: Law
Expert:  Alice H replied 10 months ago.
Good morning my name is ***** ***** I am happy to help you today.
Expert:  Alice H replied 10 months ago.
With regard to the emails from Trafalgar - do they actually say that a mortgage would be provided? Do you still have the emails?
Customer: replied 10 months ago.
Yes we have the emails, we have 3 emails that say
1)Their are "No Stipulations on the property" we could buy for the Let to Buy mortgage
2)When we told Trafalgar we were looking to get a auction property they said " Yes that would not be an issue"
3) We confirmed again that the lender would complete on a auction property and they said "Yes that is possible"I have attached the 3 emails
Expert:  Alice H replied 10 months ago.
Thanks for the PDF. I can't see an email in which Trafalgar say that a mortgage would be provided - the emails you've attached are ambiguous. Do you have anything else?
Expert:  Alice H replied 10 months ago.
I think it's going to be difficult to establish a claim against Trafalgar as there is nothing in the emails to suggest that you entered into any form of legally binding agreement with them. In order to bring a successful claim you would have to establish they made a promise or there was an agreement to provide a mortgage or they were professionally negligence in any advice they gave but the emails are ambiguous and seem to be nothing more than indications/guidance. Of course, you don't have to accept my view and can start a claim against them in the County Court using the small claim procedure but I think it will be an uphill struggle to succeed. I appreciate this may not be the answer you were looking for but I have a duty to give you an honest and objective opinion as a solicitor. However, I am happy to discuss further if needed.
Expert:  Alice H replied 10 months ago.
Please remember to take a moment to rate my answer. I am happy to answer any further questions you may have about this issue.
Customer: replied 10 months ago.
I am attaching the full correspondence with Trafalgar. Let me know what you think. Can Mortgage brokers give bad advice and get away with it?
Expert:  Alice H replied 10 months ago.
Thanks for the additional documents which I have considered. I can't see a claim against Trafalgar I'm afraid - the emails do not amount to a promise, agreement, contract or formal advice. I cannot see any grounds on which you could pursue a claim; apart from anything else it's your duty, the buyer at auction, to have finance arrangements in place before bidding on a property and placing a deposit but no funding was actually in place. The emails from Trafalgar are not offers of lending or indeed an agreement to lend, therefore, they don't appear to be liable to reimburse your losses.I will opt out so you can get a second opinion from another lawyer.
Expert:  Ash replied 10 months ago.
Hello my name is ***** ***** I will help you.I have to say sadly I agree with my colleague Alice. I have also considered the documents there is no offer from them. Even if it was it would to be subject to contract and terms of valuation etc. Then and only then would they make you a final offer at which point if it was accepted could be argued there was a contract.Based on the documents you have provided I can not see that there is a promise or contract for monies which is a legally binding contract.I am sorry if this is not the answer you want or the answer I want to give you, but I have a duty to be honest.Can I clarify anything for you about this today please?Alex
Expert:  Ash replied 10 months ago.
Alex
Customer: replied 10 months ago.
thanks for the second opinion, so were we wrong to follow their advice? should we not of attempted to buy a house at auction? I am looking at past emails to see if there is any agreements for the Mortgage, but we only have AIP's (agreements in principle) will that be enough?
Expert:  Ash replied 10 months ago.
Its not an offer or promise, therefore they are not liable in that respect.AIP is not enough I am sorry to say, I wish it were.
Expert:  Ash replied 10 months ago.
Can I clarify anything for you about this today please?Alex
Customer: replied 10 months ago.
if it was you, what steps would you take next?
Expert:  Ash replied 10 months ago.
I dont think there is anything you could do.If you want to sue for negligence etc then if you lose, you risk costs against you, as well as your own.Your exposure would be around £100,000 in legal costs.
Expert:  Ash replied 10 months ago.
I am sorry its not better news.Alex
Customer: replied 10 months ago.
is it worth maybe going to the Vendor who rescinded the contract and try and get the money back from them? as they took the deposit?
Expert:  Ash replied 10 months ago.
You can try that. You could also seek to claim the deposit from the Company.You may consider its worth a try but be aware of costs consequences if you lose.
Expert:  Ash replied 10 months ago.
Does that clarify?Alex
Customer: replied 10 months ago.
when you say company, do you mean the Auction house who took card payment for the transaction? Also, what about the Solicitors who were too slow to complete the transaction. I feel they are somewhat responsible also. Do they have any kind of indemnity insurance incase they fail a client?
Expert:  Ash replied 10 months ago.
Auction house yes. Sadly I dont think the Solicitors are liable. But you can complain to the Solicitors Regulatory Authority (www.sra.org.uk) or the Legal Ombudsman. (http://www.legalombudsman.org.uk/)
Expert:  Ash replied 10 months ago.
Can I clarify anything else?Alex
Customer: replied 10 months ago.
we did put the transaction on a credit card, and tried to claim under section 75 of the consumer act but they said that as the total transaction amount was over 30K they could not do anything. Is there any other consumer rights that could help get the money back with the help of the Credit card company in this case?
Expert:  Ash replied 10 months ago.
Potentially. You could try a chargeback and see where that goes.
Expert:  Ash replied 10 months ago.
Can I clarify anything else for you?If not have a great weekend.Alex
Customer: replied 10 months ago.
yeah thats what i mean, we tried to issue a chargeback but they said no. I was just wondering if there was any other Credit Card consumer legislation that we could enforce?
Expert:  Ash replied 10 months ago.
Apart from S.75 then sadly no. But generally they wouldnt apply to property for credit cards etc anyway.But go via the Legal Ombudsman and SRA for Solicitors, then try the Financial Ombudsman for the Credit Card co.Those are your only options it seems to me.
Expert:  Ash replied 10 months ago.
Can I clarify anything else for you?Alex
Customer: replied 10 months ago.
sorry for all the questions i'm just trying to think of the best plan to proceed with the case. What would be the best way to approach the Auction House who actually charged the money on my card? is there any kind of ombudsman for them? If not how would i best approach it?
Expert:  Ash replied 10 months ago.
No Ombudman for them. It would be the financial Ombudman in relation to your credit card and any claim against the provider under the Act.But no Ombudman for auction house.
Expert:  Ash replied 10 months ago.
Does that clairfy?Alex
Customer: replied 10 months ago.
so we could only threat court proceedings with the auction house?
Expert:  Ash replied 10 months ago.
At most I think yes
Expert:  Ash replied 10 months ago.
Alex
Customer: replied 10 months ago.
ok Great, I think thats most of my Questions answered, im just going to run this thread by my mum in a few hours then if she has any further questions i will let you know, as soon as thats done i will rate you, sorry for the long question, just need to make sure i get it all right this time.
Expert:  Ash replied 10 months ago.
sure.
Expert:  Ash replied 10 months ago.
If this answers your question could I invite you rate my answer before you leave today.If you don't rate then the site does not pay me for the time I have spent answering your question.Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/
Customer: replied 10 months ago.
ok we are going to take the Credit card company to the FSA, even though the full amount of the transaction is about 40K and the section 75 only goes upto 30K, can we argue that the rest of the funds would not of been put on a credit card and that we could of only secured the rest of the money with a Mortgage/loan thus making the deposit amount considerably less and well within the section 75 consumer act.
Expert:  Ash replied 10 months ago.
ok. Good luck!
Expert:  Ash replied 10 months ago.
Enjoy the rest of the weekend.Alex
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Experience: Solicitor with 5+ years experience
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