Fixed Rate on new build

[SCA911]

We received our mortgage approval in Oct 2009 and started our build in Nov 2009. At the time of applying for mortgage we were told by lender that we could not fix rate until all money had been drawn down. We have just finished the build and contacted the lender re final drawdown and fixing the rate. WE have now been told by another member of staff that we could have fixed it from the start. We have contacted them stating that we feel we were misled over a year ago and are awaiting a response. Has any one else had this experience or have any idea where we now stand. Can we insist on the fixed rate that was available at the time of the first drawdown. Any advice much appreciated.

 

[Teknon]

I think you mislead by the other staff member. You can only go with the fixed rate once all monies have been drawn.

 

[SCA911]

Following from the conversation recently with the other staff member we contacted their head office by phone and they confirmed the fact that we could have fixed from the start. We also contacted the manager of the local office we dealt with and he confirms that as well. He is saying that maybe we weren't clear with the original advisor as to our intentions but we were crystal clear as it was obvious to everyone that the rates were only going to increase. Am more than annoyed now that they seem to be suggesting its a "your word against ours" situation.

 

[SCA911]

Have gotten another response today from lender re the above issue. They are now offering us the 3 year fixed rate that was available in Dec 09. If we decide to take this option they are back dating the figures and applying the fixed rate from 1st repayment - Jan 10. I understand this and there is an amount owed by us of €109 for payments outstanding to bring the amount we have repaid in line with the fixed rate repayment schedule. However they also say there is an additional €131 which would be added to the interest portion of the loan account. I don't understand what this means. Any advice?

Also I wonder should we ask for the breakdown of all this with regard to the 5 yr fixed available at 1st drawdown date as well. Would it be more favourable in the long term for us even though there would obviously be a bigger amount to pay to bring it in line with repayment schedule.

The last option we have is to take their current fixed rates of:

3 yr : 5.2%
5 yr : 5.65%.

Don't really know where to go next with this? Any suggestions welcome.

 

[SCA911]

Just wondering if anyone has any thoughts on the above.

Another question in relation to this. If we decide to take the option of the 3 year fixed backdated, which means it will revert back to variable in less than 2 years, does this mean we do not have the option of taking the matter to the financial ombudsman. Would accepting these terms now be seen as a resolving of the matter. We are fearful of not fixing soon and know that the Ombudsman could take months to look at it.