Jonathan Barnett, of All Mortgage Matters, criticised 3mc, an approved GMAC-RFC packager, for getting the decision-in-principle (DIP) on a buy-to-let offer but not taking the two stages further that would have confirmed the offer at the special rate offered.
Barnett previously believed that the offer was binding when the DIP was received as he explained that when he confirmed the application via 3mc, he received a document that claimed the decision was binding. Though the packager did receive the application it did not act upon it and by the time it confirmed the DIP, the lower rate was no longer available.
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Initially the application was on a rate of 5.59 per cent, but as 3mc was late in getting back to GMAC-RFC the rate had gone up to 5.89 per cent. Barnett claimed that 3mc said the deal was not binding until it had been completed, and once the lower rate had gone, it claimed it was not its policy to re-offer the deal.
Barnett contacted GMAC-RFC, and senior manager, Anna Joseph, authorised the application at the lower rate.
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Barnett said: “It turned out that 3mc was not trained in how to use GMAC-RFC’s system. My client is going to get the rate they wanted but my concern is on how many will have lost out?”
Doug Hall, sales director at 3MC, said: “I'm delighted that the client got the rate they wanted. We escalated the issues raised and the rates are now secured.”
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