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    • Johnson1980
    • By Johnson1980 11th Oct 17, 5:48 PM
    • 7Posts
    • 0Thanks
    Johnson1980
    Mis sold mortgage help
    • #1
    • 11th Oct 17, 5:48 PM
    Mis sold mortgage help 11th Oct 17 at 5:48 PM
    Firstly, thank you in advance for any help that you can provide and secondly please accept my apologies for how useless I have been to find myself having to write this question. As the title suggests, I believe that I have been mis sold my mortgage and shall go through our experience to see if anyone either agrees or can pinpoint where we have been mis sold and what we are to do next.

    My now wife and I took out an interest only self cert mortgage in 2007 to purchase our first property, a property that we still own. We went through a broker who recommended self cert as I am self employed and interest only to keep the monthly payments within our budget, which at the time was £1200 per month. The broker mentioned that we would need to open an ISA to show the lender that we had a plan to save for the capital repayment but in reality paying our mortgage ate up so much of our earnings at the time that saving on top of this was never feasible. It was a two year fixed rate product and by the time the fix had finished the credit crunch was in full flow and after a month or two of higher payments, our monthly payments continually dropped as the libor rate dropped until we were paying around £700 per month, not too dissimilar to our payments now. We were set to borrow through Halifax but as we were into the application process my credit file caused us to be rejected by Halifax, despite my never having any credit issues, so the broker quickly arranged for us to go through a sub prime lender called rooftops. At the time we were 25yr olds moving out of home for the first time so i had no idea what sub prime meant and didn't even know what a credit file was. We signed all the paperwork and moved in to our first home and then a couple of months later I thought that I'd better find out about my credit file in case it caused an issue again. I went through Equifax and found out that I had a 59yr old from Hereford's financial products on my file as we had the same name but shared nothing else. A call to Equifax and the mistake was rectified with my file clean again and my credit score excellent, as it has always been.

    Thus far I believe we were mis sold the interest only aspect with no real means of repaying the capital and an inappropriate sub prime product that the broker got a big commission for (I have the numbers in my paperwork) and we have always paid a higher rate because of. My reason for now taking an interest in oyr mortgage is that in our initial meeting with the broker we specified that we needed a portable mortgage as it was likely we would move at some point and the original Halifax mortgage that we were going ahead with was portable but the mortgage that we ended up with is not.

    As I am still self employed and it is seemingly difficult to borrow money we are thus stick with no means to pay off the mortgage and no way of transferring the mortgage to a new property leaving us stuck where we are.

    I would really appreciate any thoughts on if you agree I have a case for being mis sold this mortgage and if so what do I do about it? From searching the internet I believe that I need to contact the broker in writing stating why I believe that it was mis sold and what I want in terms of compensation but I have no idea where to start with what I should ask for. The commission paid to the broker was around £3500 but then we have been paying a higher rate of interest for ten years so how do I calculate that into any claim?

    Any help would be so great as there seems like a mine field of companies trying to help claim for some sort of mis selling but if it's simple enough I'd rather fix it myself.
Page 2
    • dunstonh
    • By dunstonh 11th Oct 17, 10:19 PM
    • 89,900 Posts
    • 56,577 Thanks
    dunstonh
    My question related to whether I had a case to complain about a broker that sold me my mortgage and nothing more or less than this.
    What is your motive or intention after a decade? It wont affect the broker (assuming he is still around). If wont have anything for you. The rules on mortgage advice known as the MMR came in years after this. So, whilst the standards of what he did in 2007 wouldnt meet current rules, he would not be affected by current rules. It could even do damage if you did disclose information in the application that was not quite truthful. By making a complaint against that broker, he could decide to get payback and attempt to get you on the mortgage fraud register. Where there has been genuine "misselling" it often pays to keep quiet as it takes two to tango and there is no point creating ripples that could come back and hurt you. That is not an idol threat. Mortgage fraud is captured under the anti-money laundering guidelines and is required to be reported. If this broker uses an independent file checker and complaints handler, they would have no choice to report you if they found what you were telling them in the complaint was different to what you put on the application.

    You need to remember that going back to pre-credit crunch, "good" mortgage brokers were viewed as the ones that got you the mortgage. Indeed, I recall the story a broker told me where he told the person they wouldnt get a mortgage. Yet a few days later, that person came back and told them a broker down the road was much better as they got him a mortgage. Back then, what was "good" was not viewed the same way as what is "good" today. The good broker got called bad and the bad one got called good. It was a different world before the credit crunch. Credit was easy. Nobody cared. It looks wrong by todays standards but it doesnt matter. Complaints are looked at on the standards of the day.
    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.
    • Pixie5740
    • By Pixie5740 11th Oct 17, 10:21 PM
    • 11,202 Posts
    • 15,655 Thanks
    Pixie5740
    How would the broker have known that you had opened an ISA but never intended to deposit any funds into it. An ISA you haven't deposited any money into when your mortgage payments went down.

    I don't get what the big deal is about having a portable mortgage. Why can't you just get a new (repayment) mortgage with another lender? Being self employed isn't a barrier to getting a mortgage, plenty of people manage it, myself included when I was contracting which was post-2008 when self cert mortgages and, for most people, interest only mortgages were a thing of the past.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • -taff
    • By -taff 11th Oct 17, 10:31 PM
    • 7,170 Posts
    • 5,162 Thanks
    -taff
    I wasn't asking people if they thought that I had been impatient when I was 25. Or if I had commited fraud, or lied or spent the money that I had saved on my mortgage in the wrong manner. But thanks for the answers to these questions should I ever feel the need to ask them...
    Originally posted by Johnson1980

    OK then.

    I would really appreciate any thoughts on if you agree I have a case for being mis sold this mortgage and if so what do I do about it?
    Originally posted by Johnson1980
    No. And nothing.
    • kingstreet
    • By kingstreet 12th Oct 17, 8:15 AM
    • 32,383 Posts
    • 17,390 Thanks
    kingstreet
    I asked him for a mortgage that could be transferred to another property
    Originally posted by Johnson1980
    Unfortunately, there isn't and has never been such a product.

    Porting confers a right to transfer a rate from an old mortgage to a new one if you qualify for that new mortgage, satisfying the lenders then criteria, affordability, status and valuation requirements.

    From your description, you would not have been able to port for the same reasons you have been unable to change lender.
    Last edited by kingstreet; 13-10-2017 at 7:32 AM.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • eschaton
    • By eschaton 12th Oct 17, 11:56 AM
    • 1,580 Posts
    • 1,282 Thanks
    eschaton
    I wasn't asking people if they thought that I had been impatient when I was 25. Or if I had commited fraud, or lied or spent the money that I had saved on my mortgage in the wrong manner. But thanks for the answers to these questions should I ever feel the need to ask them...
    Originally posted by Johnson1980

    You were 25 years old and not a child.

    After taking out the initial mortgage you have always known that it was interest only and have made no effort in setting up a repayment vehicle.

    Lower repayments at £500 less should have been a great opportunity to start paying off the capital but you spent this elsewhere.

    I also took out my first mortgage at 25. It was an ISA mortgage which the broker recommended. I really wanted a repayment mortgage but I agreed to this one and signed up. My mistake. Once I started to realise the risks and below forecast performance in the first two years, I cut my losses, cashed in the ISA and move to a repayment mortgage.

    Maybe I should claim against the broker now?

    Or maybe I was similar to you and mis-bought a mortgage.
    • AnotherJoe
    • By AnotherJoe 12th Oct 17, 4:07 PM
    • 7,674 Posts
    • 8,287 Thanks
    AnotherJoe
    I wasn't asking people if they thought that I had been impatient when I was 25. Or if I had commited fraud, or lied or spent the money that I had saved on my mortgage in the wrong manner. But thanks for the answers to these questions should I ever feel the need to ask them...
    Originally posted by Johnson1980
    You should be very grateful they pointed that out and prevented you getting yourself on a "dont sell this person a mortgage" register.
    • chelseablue
    • By chelseablue 12th Oct 17, 5:04 PM
    • 2,297 Posts
    • 2,823 Thanks
    chelseablue
    I'm not a broker so this may seem a simple question, but can you not change to a repayment mortgage now?
    Mortgage starting balance 26.02.16 £231,294
    Mortgage after Year 1 £225,078
    • haras_nosirrah
    • By haras_nosirrah 12th Oct 17, 10:54 PM
    • 1,325 Posts
    • 2,469 Thanks
    haras_nosirrah
    if only you had carried on paying £1200 when your payments dropped (overpaid that £500 a month your payments decreased by)

    you would have paid 70k off your mortgage by now
    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.
    • csgohan4
    • By csgohan4 13th Oct 17, 6:20 AM
    • 4,018 Posts
    • 2,498 Thanks
    csgohan4
    basically OP wants to hear what they want, but a big fat NO is suffice here. You knew what you were doing, be glad your not going down for fraud.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • haras_nosirrah
    • By haras_nosirrah 13th Oct 17, 7:19 AM
    • 1,325 Posts
    • 2,469 Thanks
    haras_nosirrah
    why not get a mortgage with halifax now? If the answer is that they won't give you one then they also wouldn't allow you to port a mortgage if you were an existing mortgage holder. Porting cases are treated as brand new cases for underwriting purposes and IF you qualify for the mortgage you can take the old one with you and avoid the erc. If you don't meet the criteria for a halifax mortgage you would also not be able to port the halifax mortgage.
    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.
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