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MSE News: Deutsche Bank to pay compensation for irresponsible lending
Former_MSE_Guy
Posts: 1,650 Forumite
This is the discussion thread for the following MSE News Story:
"Borrowers will get redress after the City watchdog issued its first ever fine for this offence ..."
"Borrowers will get redress after the City watchdog issued its first ever fine for this offence ..."
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Comments
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Does anyone actually enter into a mortgage without thinking about this?failed to ensure customers had thought about where they would live at the end of the term if they needed to sell their home to pay off an interest-only mortgage.0 -
"As a consequence, DB Mortgages has improved its oversight of mortgage servicing activities."
Presumably requests to borrow money are now met by the industry norm of:
"You expect to borrow how much??? :eek:"
Shortly followed (after taking your application fee) by:
"Computer says no!" :cool:"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
JimmyTheWig wrote: »Does anyone actually enter into a mortgage without thinking about this?
Lots. We see several here per month.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
I agree with the fine but bare in mind this sort of thing makes it much harder for millions of people toi get a mortgage and who as such will have to rent, causing a great gap between the haves and have nots.
This is not a zero sum game, and as an example older clients now really struggle to obtain a mortgage (following a divorce for example), so a great many people cannot buy a home, even though statistically 99% of them would not have been repossessed.
We all want responsible lending, but remember there is a much greater Human cost to this then the Human cost inj terms of the minority that get repossessed.
Pre - 2007 older people (grown adults!) could take the decision that on balance they will not be repossessed at retirment as they would down size or get an inheritance for example, whereas now they do not have the autonomy to make such a life choice.
It's easy to take the position we 'we must have responsible lending', but as I say it's worth considering the real cost to millions of would be home owners who dont quite fit the mould.0 -
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I'm a current DB Mortgages customer. I must say that the mortgages I hold WERE very expensive when I took them out, but now that I am out of the initial period, they have dropped down to a fairly reasonable (variable) level.
I am far from sure that there weren't cheaper options when I took out the loan. What I wasn't told about, how can I possibly know about? The FSA seem to have had complaints about this (but a bit weird, for reasons as above - how can borrowers know that there might be lower rates available when those are not mentioned??). I'd like to make a claim (since I think it may be true that I could have obtained a cheaper loan). Is there anyone out there with any experience of such a claim? How can I prove my point? How can I know something about something I was never told about?0 -
littledragon101 wrote: »I'm a current DB Mortgages customer. I must say that the mortgages I hold WERE very expensive when I took them out, but now that I am out of the initial period, they have dropped down to a fairly reasonable (variable) level.
I am far from sure that there weren't cheaper options when I took out the loan. What I wasn't told about, how can I possibly know about? The FSA seem to have had complaints about this (but a bit weird, for reasons as above - how can borrowers know that there might be lower rates available when those are not mentioned??). I'd like to make a claim (since I think it may be true that I could have obtained a cheaper loan). Is there anyone out there with any experience of such a claim? How can I prove my point? How can I know something about something I was never told about?
Did you apply for your mortgage direct or through a broker?0 -
Thrugelmir wrote: »Did you apply for your mortgage direct or through a broker?
Through a broker. Thanks for asking, BTW.0 -
littledragon101 wrote: »Through a broker. Thanks for asking, BTW.
Did your circumstances mean DB were the best option for you?
Did you have any adverse credit?
Did you self cert?
Your broker should have provided you with documentation detailing why that product was selected and a list of alternative products detailing why they were not chosen.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Did your circumstances mean DB were the best option for you?
Did you have any adverse credit?
Did you self cert?
Your broker should have provided you with documentation detailing why that product was selected and a list of alternative products detailing why they were not chosen.
I hear that, BUT there is something that the FSA have seen at DB Mortgages which has led them to blame DB Mortgages for not having ensured that the client knew there were cheaper mortgages on offer. Perhaps they only offered their dearer offerings, and never promoted cheaper one, even if they were part of their range (I am guessing here, but there IS something that the FSA have found fault with). As I said, I have NO idea what they have found, but they have found something within DB Mortgages. They are not criticising the brokers.
Yes, I had adverse credit, yes it was self cert - BUT that's the market DB went after......
Where are you heading with this one (and thanks for the engagement, BTW).0
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