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  • FIRST POST
    • diddymonster
    • By diddymonster 14th Sep 17, 11:46 PM
    • 4Posts
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    diddymonster
    Mis sold mortgage ???
    • #1
    • 14th Sep 17, 11:46 PM
    Mis sold mortgage ??? 14th Sep 17 at 11:46 PM
    Hi all, I'm new here and seeking some help.

    I think I was mis sold a mortgage, I'm not sure if I have run out of time or I am barred from doing anything about it now, I've not been best equipped to face upto much recently.

    Simply ... in 2006, earning only 20k a year, I saw a broker and he arranged a self cert interest only mortgage for £420k at approx 6%

    I managed to keep going for a while and it finished my relationship with my partner and her 2 kids, it cleaned me out of savings and finally it put me in hospital with a very severe breakdown for several months followed by repossession and bankruptcy. I've been affected ever since with depression, anxiety and no quality of life.

    Do I have a case or a position to work with or build on at all. I feel I was mis sold, ill advised and not properly protected. It's affected me totally and I live with the after affects all day every day.

    I'm not looking for pity, but it would be good to know clearly if I can action anything or not,

    Thanks in advance, D
Page 1
    • Edi81
    • By Edi81 15th Sep 17, 6:16 AM
    • 274 Posts
    • 161 Thanks
    Edi81
    • #2
    • 15th Sep 17, 6:16 AM
    • #2
    • 15th Sep 17, 6:16 AM
    No.

    Self cert mortgages allowed people to lie about their income to get a mortgage. Somewhere in the terms and conditions they you signed there would have been something about how your declaration of income was correct and not fraudulent.

    You don't have a case. Surely you realised at the time that borrowing over 20 times your income was stretching it a bit.
    • csgohan4
    • By csgohan4 15th Sep 17, 7:11 AM
    • 3,767 Posts
    • 2,351 Thanks
    csgohan4
    • #3
    • 15th Sep 17, 7:11 AM
    • #3
    • 15th Sep 17, 7:11 AM
    When you applied, did you not realise that the outgoings would be quite high ? Or did you just self certify as much as you could to get a house at any cost?


    So what did the bank do wrong for you? I think the question is what did you do wrong in the days when mortgage regulation was poor.


    How do you intend on paying off the mortgage when the term ends?


    Your option would be sell up and start a new.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • TrickyDicky101
    • By TrickyDicky101 15th Sep 17, 8:43 AM
    • 2,689 Posts
    • 1,742 Thanks
    TrickyDicky101
    • #4
    • 15th Sep 17, 8:43 AM
    • #4
    • 15th Sep 17, 8:43 AM
    You must have realised the annual interest was more than your entire gross annual income? Why did you buy in the first place?

    It must have been tough right from the start and I'm not surprised it had significant consequences for you
    • dunstonh
    • By dunstonh 15th Sep 17, 10:42 AM
    • 89,490 Posts
    • 54,953 Thanks
    dunstonh
    • #5
    • 15th Sep 17, 10:42 AM
    • #5
    • 15th Sep 17, 10:42 AM
    Simply ... in 2006, earning only 20k a year, I saw a broker and he arranged a self cert interest only mortgage for £420k at approx 6%
    6% isnt an issue for 2006. So, not a sub-prime mortgage. That eliminates the only real complaint area that the FOS have concerns with.

    Self cert means you self-certified that the income you gave on the application is correct.

    followed by repossession and bankruptcy
    That ends your ability to complain. Even if you were missold, any financial redress that came from the complaint would not be paid to you as it would be considered a pre-bankruptcy asset and it would be paid to the OR.

    Do I have a case or a position to work with or build on at all.
    No. In fact, you can really only do damage to yourself from this even if you were missold.

    To get a mortgage of £420k whilst earning 20k almost certainly means you lied on the mortgage application form. Before you get angry at me for using that sort of language, the application form was signed by you stating that the information on it was correct. So, whether you were led to it or not, you signed saying that was the case. There is a mortgage blacklist register for people who have lied and committed mortgage fraud. So, you would be inviting them to put you on that list. Again, my wording is blunt but I am removing the emotion you have and looking at it as an unconnected third party with no emotion attached to any outcome in the hope you can see the issues you have. What you must have gone through sounds horrible but we have to park that to one side and look at the issues you would have now if you were to complain.

    There is also the point that you would have gone to a broker asking for that level of mortgage. The broker only gave you what you wanted. It takes two to tango.

    Bottom line is that as you went bankrupt, there is nothing for you to gain. However, there is plenty for you to lose if you did make the complaint as you could end up on that register which would prevent you getting a future mortgage.
    Last edited by dunstonh; 15-09-2017 at 11:31 AM.
    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.
    • amnblog
    • By amnblog 15th Sep 17, 4:25 PM
    • 9,747 Posts
    • 3,763 Thanks
    amnblog
    • #6
    • 15th Sep 17, 4:25 PM
    • #6
    • 15th Sep 17, 4:25 PM
    You fraudulently over declared your income to obtain a mortgage and would like someone to be held responsible?

    Is that about it?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • minimike2
    • By minimike2 15th Sep 17, 5:28 PM
    • 1,902 Posts
    • 1,398 Thanks
    minimike2
    • #7
    • 15th Sep 17, 5:28 PM
    • #7
    • 15th Sep 17, 5:28 PM
    21x Income. Wow.... I've seen some 8/9/10x from various "fast track" lends back in the day, but never to this level.

    That's just crazy (even for then).
    I am a mortgage industry professional. 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
    • Edi81
    • By Edi81 15th Sep 17, 6:49 PM
    • 274 Posts
    • 161 Thanks
    Edi81
    • #8
    • 15th Sep 17, 6:49 PM
    • #8
    • 15th Sep 17, 6:49 PM
    Something makes me think this is a troll.......
    • diddymonster
    • By diddymonster 17th Sep 17, 9:30 AM
    • 4 Posts
    • 0 Thanks
    diddymonster
    • #9
    • 17th Sep 17, 9:30 AM
    • #9
    • 17th Sep 17, 9:30 AM
    Thanks to all for your replies and advice.

    I appreciate that blunt responses in some cases are realistic for what you see and no, I am not a troll.

    I had amassed a high level of savings prior to taking out the mortgage which helped and my partner (who was not a party on the mortgage or deeds) was going to move her rural based business over to our new location. Additionally, I was a director in a successful business, from which I was drawing no salary or dividends, but I was repaying a large directors loan.

    Despite the very high loan to earnings ratio, no, it was not unreasonable in the bigger picture. Some brokers however do fill out forms without the signee knowing what was written

    I agree with all that it's only my own fault, my question was based on "whether if" rather than trying to pass on blame.

    All other points raised are very much noted and I shall lay the matter to rest now, for what it's worth, post BR does have a few benefits of making for a fresh outlook and start.

    Anyway, thanks for the replies.
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