Central Trust Mortgage Brokers

5yno

Hello ,I really need to some advise as to why I have been sent this letter from a mortgage broker who I used in 2006

Sent on Central Trust Headed Paper

Letter reads,

Dear Mr and Mrs +++++++

THIS LETTER IS IMPORTANT-IT CONCERNS THE MORTGAGE ADVICE WE GAVE YOU IN +++++ 2006 AND REQUIRES YOU TO TAKE ACTION TO REVIEW WHETHER OR NOT OUR MORTGAGE ADVICE WAS APPROPIATE

In +++++++ 2006 we gave you advice about your mortgage options and arranged a mortgage for you.We have set out below the details of the recommendations we gave you.

Why we are writing to you?

Following an internal review C****** T**** has become aware that we may not have fully established that the mortgage that we recommendend to you was affordable,based on your personal circumstances and your income and outgoings at the time we gave you mortgage advice.

This is particularly important if the mortgage we recommended to you was either:

an intrest only mortgage, or

the length of the mortgage extended beyond your state retirement age and, therefore beyond when you might still be in employment; or

Involved a remortgage that incurred penalties (sometimes known as "Early Redemption Charges or ERCs) which were then added to your new mortgage

As a result we may have recommended a mortgage that was not in fact affordable to you.

__________________________________________________ _

This is most of the first page of the letter that has been sent to me,but then the letter goes on to ask about income and expenditure for 2006 and a questionare for me to fill in,

I have got arrears on the mortgage account,but I have managed to keep to an agreed arrangement for around about 9 months without any missed payments and paying small amounts off of the arrears.

2 of the points that they have raised about the mortgage relate to my circumstances,(early redemption charges and extended beyond my husbands retirement age)

Any advice would be greatly received as I feel this broker is cleaning up the there house before its got dirty.

I HAVE NOT REQUESTED ANY INFORMATION FROM THE LENDER OR BROKER REGARDING THIS ACCOUNT THE LETTER WAS RECEIVED COMPLETLEY OUT OF THE BLUE FROM C++++++ T++++


Sorry about dots and dashes not sure what I am allowed to quote.

many thanks in advance of advice.

dunstonh

Any advice would be greatly received as I feel this broker is cleaning up the there house before its got dirty.

Either they have been instructed to review all cases that were done by an individual or they have chosen to do so. It doesnt mean there was bad advice but its probable that the client file is missing certain things which prevent them from being able to tell if it was good advice or not.

Looking at the text of the letter, it seems likely that its a standard letter being sent out to all customers the used a certain adviser.

early redemption charges are not a mis-sale issue but they do have to be disclosed. Virtually all deals have them, so they are not exactly avoidable. However, paying them to get into another mortgage is frowned upon unless there are good reasons for doing so.

Going beyond state retirement age (usually by more than 6 months) could be an issue but it would depend on whether you were aware of that and it was documented. It also depends on whether you could afford the mortgage on his wage alone or yours alone. Again, it doesnt make a mis-sale as there can be good reasons to go beyond retirement.

You should respond to them on and mention the two points that apply to you and let them review the case after that.

Rick62

It could well be that they have been told to do this by the FSA because of poor advice in the past. It does not mean that the advice to you was poor, although it does not sound good that you had early repayment charges from your previous mortgage - why did they do that?

5yno

This was because my previous mortgage had only been running for 2 years.

Rick62

But why did they change you to a new mortgage while you were still subject to repayment penalties?