Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • coys2006
    • By coys2006 6th Sep 17, 7:38 PM
    • 6Posts
    • 0Thanks
    coys2006
    Mis sold PEP with Interest only mortgage
    • #1
    • 6th Sep 17, 7:38 PM
    Mis sold PEP with Interest only mortgage 6th Sep 17 at 7:38 PM
    Good Evening Everyone,


    Hopefully somebody out there could give me some advice.


    When I first took out my mortgage around 18 years ago I went though a financial adviser at a local estate agent. I was advised to take out an interest only mortgage with Santander (Abbey National at the time) and take out a PEP with legal & general to pay off the loan at the end of it. Being young and a bit naïve at the time I took the financial advisers advice. About 18 months later I realised what I had signed up for and changed my mortgage to a repayment one directly with Santander.


    I believe I can claim for being mis-sold a PEP by the financial adviser but I'm not sure how I go about it. Is there a generic letter I can send to them or could you advise me on how to word it.


    Thanks in advance
Page 1
    • dunstonh
    • By dunstonh 6th Sep 17, 7:55 PM
    • 89,548 Posts
    • 55,002 Thanks
    dunstonh
    • #2
    • 6th Sep 17, 7:55 PM
    • #2
    • 6th Sep 17, 7:55 PM
    I believe I can claim for being mis-sold a PEP by the financial adviser
    No you cant. You are timebarred.

    You have 6 years from the sale and 3 years from being reasonably aware of an issue to raise a complaint. Both rules have to be met. In your case they are both met as the sale was 18 years and you switched to repayment basis 16/17 years ago. So, well past the 3 year mark.

    Plus, even if you were not timebarred, you would not be financially worse off. In year 1-5 of the repayment mortgage, you basically pay back peanuts. The ISA would actually be better than a repayment mortgage in the early years. It is the later years where the volatility can cause more damaging swings.

    So, nothing doing here.
    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 a Financial Adviser local to you.
    • coys2006
    • By coys2006 6th Sep 17, 8:18 PM
    • 6 Posts
    • 0 Thanks
    coys2006
    • #3
    • 6th Sep 17, 8:18 PM
    • #3
    • 6th Sep 17, 8:18 PM
    Thanks for the speedy reply. Much appreciated.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,300Posts Today

9,285Users online

Martin's Twitter