Mortgage mis-sold??

mac_saver

neverdespairgirl wrote: »

Have you posted on the debt-free wannabee board here on MSE? They are a really helpful, friendly bunch, and great at helping you save money.

No I havnt yet posted on that part of the site Thanks for the advice I will give it a look :beer:

neverdespairgirl

Definitely do, the people on there are great at shavings bits off your spending, and it all helps.

HelpWhereIcan

mac_saver wrote: »

Didnt have mortgage arrears before July 08 when 2 year deal ended, remortgaged to release small amount of equity due to wifes ill health to pay off debts that had built up due to bills including medical treatment. At the time i took on the mortgage i was behind with a few credit card bills no arrears no CCJ, feel stupid for trusting him thought all advisors were like the one i knew. Now it is evident i dont appear to have a leg to stand on i will just have to wait and see what happens.

Now this is your potential claim for a mis-sale.

I can now see where the other advisers you have spoken to may be coming from.

With just a small number of late or slow payments on unsecured credit commitments (so no defaults, CCJs or Mortgage Arrears) you should have still been able to get a deal with a lender more competitive than SPML two years ago.

mac_saver wrote: »

Hi the initial advance was for £176,500 at a rate for 2 years @ 7.14% then up to 8.33% if the rate stayed the same interest only with the promise to come back after the 2 years to arrange a better deal.

would have been higher than available with many lenders on a two year deal at the time.

mac_saver wrote: »

Hi
Had to go self cert as a lot of my income is dependent on the vast amount of overtime that I do and my wifes online work and the income multiples did not quite add up, all incomes declared so no fraud involved.

This also tells me that the actual self cert itself may have been mis-sold.

2 years ago there would have been lenders who would look constructively at the overtime you receive (affordability based lenders) and some who would have looked at your P60 earnings only (rather than the split of basic & over-time).

To get 176500 you would have needed an income of £44125 (assuming a 4x multiple which was common then and that you would have had no other commitments) so having a basic salary of £32,000 means that your application would not have been overly reliant on the overtime and other income and a skilled adviser would know which lenders to speak to to get the case looked at as an overall.

Even if your missed payments meant a deal with a 'high street' lender was not available, I would be shocked if (based on what you have told us) SPML was your only option and, based on what I know of them, SPML would have been one of the most expensive options available to you at the time.

April/May would have been a very difficult time to find a remortgage deal for most people, let alone someone with a CCJ.

So, I am 'with you' on that part but....

leave the LIBOR link out of it
leave the fees out of it
leave the inability to remortgage after 2 years out of it

Concentrate solely on the fact that the mortgage was a sub prime/non conforming one when your credit history did not suggest it was needed and that it was self cert product when you could prove income sufficient to support the loan.

You may also be able to argue that you would have been better advised to seek a further advance from your lender at the time - especially if taking the SPML remortgage incurred early repayment charges and/or the deal with SPML was not much better than your existing lender's Standard Variable Rate.

This argument is further strengthened if your deal was coming to an end and your existing lender was one who offered retention deals to existing customers. You may have been better to take on of those deals and, if your lender would not agree a further advance for the debt consolidation, to arrange a secured loan for the additional borrowing (or even an unsecured loan).

Depends on the figures at the time, but a new deal from your existing lender and a secured loan may have worked out cheaper than the SPML remortgage and, even if it didn't, you may have been able to take a new deal with the lender this year rather than being with a lender like SPML who never offered retention deals.

Your complaint should only be to do with the suitability of the mortgage selected for you at the time. To bring the other issues into it only clouds the issue and weakens your argument by making it look like you are clutching at straws to blame someone else for your own misfortune.

With regards to what happens next, I would suggest that you communicate with SPML in writing to try and reach an agreement on repaying your arrears.

A court will only grant possession as a last resort and being able to show that you have been trying to make an arrangement will make it easier for the District Judge to grant a suspended possession order.

The minimum payment you will have to make is the interest only payment and the arrears can normally be spread over a year or two (although there is precedent for the court to allow the arrears to be repaid over the remaining term of the mortgage).

Get your arrears caught up, get the CCJ satisfied and plan for when the credit market loosens a little and/or the arrears are more than a year old. You should have more choice for a remortgage then. Just try and getthings sorted out with SPML before it goes to court and you have a repossession order to make your mortgage options even more difficult.

Good Luck

SouthCoast

Be aware that land and property debt will haunt you for a least the next 12 years.

Advice on dealing with mortgage arrears can be found here:

http://www.adviceguide.org.uk/index/life/debt/mortgage_arrears.htm

dunstonh

Now this is your potential claim for a mis-sale.

I can now see where the other advisers you have spoken to may be coming from.

With just a small number of late or slow payments on unsecured credit commitments (so no defaults, CCJs or Mortgage Arrears) you should have still been able to get a deal with a lender more competitive than SPML two years ago.

Thank you. I mentioned that is the possible in post #20 but no-one followed that up. I was waiting for a mortgage adviser to confirm that the mortgage sold was not prime.

SouthCoast

IMO the SPML mortgage book is sub-sub-sub prime.

mac_saver

HelpWhereIcan wrote: »

Now this is your potential claim for a mis-sale.

I can now see where the other advisers you have spoken to may be coming from.

With just a small number of late or slow payments on unsecured credit commitments (so no defaults, CCJs or Mortgage Arrears) you should have still been able to get a deal with a lender more competitive than SPML two years ago.



would have been higher than available with many lenders on a two year deal at the time.



This also tells me that the actual self cert itself may have been mis-sold.

2 years ago there would have been lenders who would look constructively at the overtime you receive (affordability based lenders) and some who would have looked at your P60 earnings only (rather than the split of basic & over-time).

To get 176500 you would have needed an income of £44125 (assuming a 4x multiple which was common then and that you would have had no other commitments) so having a basic salary of £32,000 means that your application would not have been overly reliant on the overtime and other income and a skilled adviser would know which lenders to speak to to get the case looked at as an overall.

Even if your missed payments meant a deal with a 'high street' lender was not available, I would be shocked if (based on what you have told us) SPML was your only option and, based on what I know of them, SPML would have been one of the most expensive options available to you at the time.

April/May would have been a very difficult time to find a remortgage deal for most people, let alone someone with a CCJ.

So, I am 'with you' on that part but....

leave the LIBOR link out of it
leave the fees out of it
leave the inability to remortgage after 2 years out of it

Concentrate solely on the fact that the mortgage was a sub prime/non conforming one when your credit history did not suggest it was needed and that it was self cert product when you could prove income sufficient to support the loan.

You may also be able to argue that you would have been better advised to seek a further advance from your lender at the time - especially if taking the SPML remortgage incurred early repayment charges and/or the deal with SPML was not much better than your existing lender's Standard Variable Rate.

This argument is further strengthened if your deal was coming to an end and your existing lender was one who offered retention deals to existing customers. You may have been better to take on of those deals and, if your lender would not agree a further advance for the debt consolidation, to arrange a secured loan for the additional borrowing (or even an unsecured loan).

Depends on the figures at the time, but a new deal from your existing lender and a secured loan may have worked out cheaper than the SPML remortgage and, even if it didn't, you may have been able to take a new deal with the lender this year rather than being with a lender like SPML who never offered retention deals.

Your complaint should only be to do with the suitability of the mortgage selected for you at the time. To bring the other issues into it only clouds the issue and weakens your argument by making it look like you are clutching at straws to blame someone else for your own misfortune.

With regards to what happens next, I would suggest that you communicate with SPML in writing to try and reach an agreement on repaying your arrears.

A court will only grant possession as a last resort and being able to show that you have been trying to make an arrangement will make it easier for the District Judge to grant a suspended possession order.

The minimum payment you will have to make is the interest only payment and the arrears can normally be spread over a year or two (although there is precedent for the court to allow the arrears to be repaid over the remaining term of the mortgage).

Get your arrears caught up, get the CCJ satisfied and plan for when the credit market loosens a little and/or the arrears are more than a year old. You should have more choice for a remortgage then. Just try and getthings sorted out with SPML before it goes to court and you have a repossession order to make your mortgage options even more difficult.

Good Luck

Thanks for the good advice I am sure the deal was not right for me having listened to others I will heed the advice about what to drop from my argument and press perhaps for the sub-prime argument.
Thanks again.