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  • FIRST POST
    • Norah G
    • By Norah G 31st Aug 17, 6:03 PM
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    Norah G
    Mis sold mortgage
    • #1
    • 31st Aug 17, 6:03 PM
    Mis sold mortgage 31st Aug 17 at 6:03 PM
    I believe I was mis sold an Interest Only mortgage in 2006. I've heard that I may be entitled to compensation as a result. I would appreciate any advice from any one who might be able to help.Many thanks.
Page 1
    • zx81
    • By zx81 31st Aug 17, 6:07 PM
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    zx81
    • #2
    • 31st Aug 17, 6:07 PM
    • #2
    • 31st Aug 17, 6:07 PM
    Why do you believe you were mis sold?
    • Thrugelmir
    • By Thrugelmir 31st Aug 17, 6:28 PM
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    Thrugelmir
    • #3
    • 31st Aug 17, 6:28 PM
    • #3
    • 31st Aug 17, 6:28 PM
    Compensation for what precisely?
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • brit1234
    • By brit1234 31st Aug 17, 6:51 PM
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    brit1234
    • #4
    • 31st Aug 17, 6:51 PM
    • #4
    • 31st Aug 17, 6:51 PM
    How were you misold the mortgage please?

    You know you have to repay the mortgage sum eventually with your repayment vehicle (shares, ISA, pension lump sum) which you had as an alternative to a repayment mortgage.
    Scams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

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    • Leafeysurrey
    • By Leafeysurrey 31st Aug 17, 8:22 PM
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    Leafeysurrey
    • #5
    • 31st Aug 17, 8:22 PM
    • #5
    • 31st Aug 17, 8:22 PM
    I need to get my glasses changed or something. I read the OP was asking for advice.
    • SidJ
    • By SidJ 31st Aug 17, 8:37 PM
    • 2 Posts
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    SidJ
    • #6
    • 31st Aug 17, 8:37 PM
    • #6
    • 31st Aug 17, 8:37 PM
    Based on the information provided what advice would you give?
    • dunstonh
    • By dunstonh 31st Aug 17, 8:55 PM
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    dunstonh
    • #7
    • 31st Aug 17, 8:55 PM
    • #7
    • 31st Aug 17, 8:55 PM
    I believe I was mis sold an Interest Only mortgage in 2006. I've heard that I may be entitled to compensation as a result.
    Where have you heard that?

    The complaints statistics and the published FOS complaint stats show no spike in complaints.

    I would appreciate any advice from any one who might be able to help.
    You would need to tell us why you think you were missold.

    However, be aware, that whilst a lot of mortgages were sold in a way that would not be compliant today, they were sold that way with the full knowledge of the borrower. i.e. if you lied on an application form, then the lender can add you to the fraud database. So, a complaint can be a very foolish thing to do.

    The FOS position on successful complaints about things like interest only mortgages, is to compare the position to what you would have been in had you rented the property vs the mortgage you paid and the equity you have gained in the property value and were to sell up today. In the vast majority of cases, mortgage is by far the better option.

    This is why there are so few claims companies that are taking on missold mortgage complaints. There are some that do it but they tend to hit people with repeat fees (e.g £495 up front, then after so many months, you are told you have a case but they need more money from you to refer it to their legal team etc). it is those fees that make the claims company money and it is nothing short of advance fee fraud.
    Last edited by dunstonh; 01-09-2017 at 12:52 PM.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • csgohan4
    • By csgohan4 1st Sep 17, 6:48 AM
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    csgohan4
    • #8
    • 1st Sep 17, 6:48 AM
    • #8
    • 1st Sep 17, 6:48 AM
    I believe I was mis sold an Interest Only mortgage in 2006. I've heard that I may be entitled to compensation as a result. I would appreciate any advice from any one who might be able to help.Many thanks.
    Originally posted by Norah G


    Who is this someone who told you? Larry from the local pub???


    What is your repayment vehicle for you IO mortgage?
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • haras_nosirrah
    • By haras_nosirrah 1st Sep 17, 8:07 AM
    • 1,301 Posts
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    haras_nosirrah
    • #9
    • 1st Sep 17, 8:07 AM
    • #9
    • 1st Sep 17, 8:07 AM
    I need to get my glasses changed or something. I read the OP was asking for advice.
    Originally posted by Leafeysurrey
    but we don't know what his complaint is so how can we advise anything
    I am a Mortgage Adviser
    You 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.
    • ACG
    • By ACG 1st Sep 17, 8:36 AM
    • 15,779 Posts
    • 8,072 Thanks
    ACG
    You need to speak to the company who sold you the mortgage in the first instance.

    You will need to explain why you were miss sold, how it was unsuitable and how you are out of pocket because of it. In short you need to have some confidence there were better options.

    Being sold an interest mortgage in itself is not bad advice. I do not do many of them personally, I have done 2 in the last 2 years.
    I am a Mortgage Adviser
    You 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.
    • Susannah67
    • By Susannah67 7th Sep 17, 9:04 PM
    • 1 Posts
    • 0 Thanks
    Susannah67
    There is a company who is advertising on Facebook that if you took out an interest only mortgage after October 2004, you may have grounds for applying for compensation, depending on the circumstances. They are working on a no-win, no-fee basis but say they will take 35% plus VAT if you do receive compensation. I wonder if this is legitimate? Has anyone else had experience of this?
    • zx81
    • By zx81 7th Sep 17, 9:10 PM
    • 14,108 Posts
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    zx81
    Why do you think you are due compensation?
    • mrginge
    • By mrginge 7th Sep 17, 9:35 PM
    • 4,266 Posts
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    mrginge
    There is a company who is advertising on Facebook...
    Originally posted by Susannah67
    Oh deary deary me
    • dunstonh
    • By dunstonh 7th Sep 17, 10:11 PM
    • 89,566 Posts
    • 56,031 Thanks
    dunstonh
    There is a company who is advertising on Facebook that if you took out an interest only mortgage after October 2004, you may have grounds for applying for compensation, depending on the circumstances. They are working on a no-win, no-fee basis but say they will take 35% plus VAT if you do receive compensation. I wonder if this is legitimate? Has anyone else had experience of this?
    Originally posted by Susannah67
    It seems facebook does attract the dodgy claims companies. SERPS was missold with a tiny failure rate of 1.5%. Yet there is a claims company on facebook encourging SERPS missale complaints (which it promptly refers to its sister company to then charge a fee to transfer to another pension and do some of the things that it puts in its scattergun complaint template).

    A fee of 35% plus 20% VAT gives you an indication of the low success rate. As already said, there are very few claims companies doing missold mortgages as the chance of success is low. Most of those that do it say its no fee but after x number of weeks, come back and tell you that you have a case (even though you usually dont) but unfortunately, it cannot be done on no fee basis as the solicitors want to be paid to do it (there are no solicitors). Then a few months later they tap you up for more. By the time you realise it was a sham, the directors have emptied the company of any money and go into administration or close down before people start asking for their money back.

    The FOS position on this is that the rules and standards in the year of purchase are applied and if the complaint is successful, they compare it to what you would have been in had you rented. So, if you bought your property for £100k on a £90k interest only mortgage and the property is now worth £150k, they would take that £50k equity gain into consideration and in the majority of cases, that equity gain is far higher than any perceived loss. They do this because without the mortgage you would be renting. So, to put it right, you sell up and go back to renting (except you have the equity gain in your pocket).

    The only area of real concern with the FOS is where sub prime mortgages were used when prime or near prime as possible.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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