Mortgage Broker - Mis-Sold Mortgage ??? Help

Debs68

Mortgage Broker - mis-sold mortgage ???
(Sorry in advance - I posted this in a different place but moved it as I thought this was the right place)

Hi - this may be going off point a little but didn't know where else to ask. I was speaking to someone recently about financial difficulties and they told me to ask around or look into it.....

Basically

About 5 years ago I decided to remortgage as I need some extra cash. At the time I had a mortgage of 45k and the house was worth about 100k. Single mum - working and getting tax credits - I wanted to borrow an additional 20k. Because I had loans / credit card etc at the time...I wanted to clear these as being on a low income was proving difficult to meet repayments every month - just keeping head above water.

I went to a local company - Estate Agents / Mortgage brokers who are still in business. They charge £100 fee for finding you the right mortgage.
The girl who did it for me at the time found a company who were willing to lend. This was on a self certification...no proof of income. The broker stated I earned 29k a year to secure me this mortgage.

Everyone I speak to now says that this was fraudulent on her part and she secured me a mortgage that I couldn't really afford - being on less than 10k a year salary really. I only realized this a few months ago as I phoned my mortgage company looking to borrow additional sums and was told they only lend to self employed - not employed.
I'm on a better income now - not great though - but have struggled since getting this mortgage - it isn't endowment - I pay mortgage insurance monthly. I barely keep my head above water and end up with debts, borrowing just to keep everything paid.

My friends say that she pushed for this mortgage regardless of how I would end up paying it...and at a time of desperation I just signed everything she handed me...as you do...as long as you know the money is coming...you will.The process took less than an hour as I only had to show her my bank statement and tax credit awards but she didn't have to produce these to the lender she had set up for me.

Was she in the wrong ?? Did she act illegally / fraudulently and would I have any comeback if I pursued this ???

Any advice would be greatly appreciated. Thanks

dunstonh

Everyone I speak to now says that this was fraudulent on her part and she secured me a mortgage that I couldn't really afford

Whilst how you explain it is fraudulent on her part it was also fraudulent on your part as you made the application and signed to say the data used was correct.

I just signed everything she handed me...as you do...as long as you know the money is coming...you will.

You chose not to read what is possibly the largest or second largest transaction you will make in your life? You have stated you wanted it and you got it. Regardless of what was put on the application, you knew exactly what the monthly cost was before you commited. Yet you chose to proceed.

You also said it was a remortgage and debt consolidation so the broker didnt actually give you any new lending just moved around what you already had. No doubt this saved you a lot of money on a monthly basis. You suggest it did but dont say how much. Perhaps it even saved you from being repossessed and suffering debt collections.

Was she in the wrong ??

yes

Did she act illegally

no. unlawfully but not illegally.

would I have any comeback if I pursued this ???

You would be confirming that you commited fraud. So, it would depend on the circumstances as to whether it would damage you or not. Its possible you would be forced to declare on all future mortgage applications that you commited mortgage fraud. That would be pretty much a turn off to lenders.

In reality, you are not likely to get anything out of a complaint because it wasnt a purchase but a remortgage. You already had the borrowing and debt levels prior ot seeing this person.

Also mortgage regulation started in October 2004. You say 5 years which suggests its pre-regulation.

HelpWhereIcan

While, on the face of it, your adviser seems to have falsified the figures, you may also find that your income was declared accurately as far as the lender was concerned.

Self cert would have allowed the adviser to use all of your income from all sources

e.g

Salary 10000
Tax Credits 7500
Child Benefit 1500
Maintenence 6400
Rent from lodger 3600

Total 29000

We do not know enough about your situation at the time to comment accurately, but for a complaint to be successful you would need to be able to explain how you were unaware of what was being done and what actual pressure was put on you to proceed.

If you can do this then you may have a complaint

Met_Bobby

Debs68 wrote: »

Was she in the wrong ?? Did she act illegally / fraudulently and would I have any comeback if I pursued this ???

The broker assisted you in committing mortgage fraud. I think that the lender has the right to cancel the contract if they so wish and demand repayment of the loan in full. They would only do that if there was a strong enough reason to do so. There would be a limited degree of protection for you if you complained against the broker but ultimately the debts were built up by you and are your responsiblilty. You need to concentrate upon a debt repayment plan and make sure your lifestyle is within your income. It is just a pity that the broker did not advise you on this at the time. Your broker was incompetent and acted unlawfully but is not solely responsible I'm afraid.

m1ntie

I am sorry but you are in difficulty because of your own irresponsibility and foolishnes.

On a very low income you already had a mortgage of 4.5 times your salary, you then took on a further £20000 of credit card loans, increasing it to 6.5 x salary - total madness. Presumably the remortgage is at a much lower rate than the credit card/loans, so what are you complaining about.

minimike2

Surely this is a wind-up?

FraudBuster

The Fraud Act 2006

2 Fraud by false representation
(1) A person is in breach of this section if he—
(a) dishonestly makes a false representation, and
(b) intends, by making the representation—
(i) to make a gain for himself or another, or
(ii) to cause loss to another or to expose another to a risk of loss.
(2) A representation is false if—
(a) it is untrue or misleading, and
(b) the person making it knows that it is, or might be, untrue or misleading.
(3) “Representation” means any representation as to fact or law, including a representation as to the state of mind of—
(a) the person making the representation, or
(b) any other person.
(4) A representation may be express or implied.
(5) For the purposes of this section a representation may be regarded as made if it (or anything implying it) is submitted in any form to any system or device designed to receive, convey or respond to communications (with or without human intervention).

http://www.legislation.gov.uk/acts/acts2006/ukpga_20060035_en_1

iB1

Debs68 wrote: »

Mortgage Broker - mis-sold mortgage ???
I went to a local company - Estate Agents / Mortgage brokers who are still in business. They charge £100 fee for finding you the right mortgage.
The girl who did it for me at the time found a company who were willing to lend. This was on a self certification...no proof of income. The broker stated I earned 29k a year to secure me this mortgage.

Everyone I speak to now says that this was fraudulent on her part and she secured me a mortgage that I couldn't really afford - being on less than 10k a year salary really.

I have no idea of the ins and outs of the possibility of mortgage fraud etc. etc., but that's the kind of thing that has !!!!ed me off over the last few years, and is a perfect example of why the housing bubble has popped.

Conrad

When I turn such applicants away, I later get local feedback that I am rubbish and cant help people!
You really cannot win. When people want to borrow they will sign anything, then when they can't repay they will sue anything.

getmore4less

Debs68 wrote: »

Mortgage Broker - mis-sold mortgage ???
(Sorry in advance - I posted this in a different place but moved it as I thought this was the right place)

Hi - this may be going off point a little but didn't know where else to ask. I was speaking to someone recently about financial difficulties and they told me to ask around or look into it.....

Basically

About 5 years ago I decided to remortgage as I need some extra cash. At the time I had a mortgage of 45k and the house was worth about 100k. Single mum - working and getting tax credits - I wanted to borrow an additional 20k. Because I had loans / credit card etc at the time...I wanted to clear these as being on a low income was proving difficult to meet repayments every month - just keeping head above water.

I went to a local company - Estate Agents / Mortgage brokers who are still in business. They charge £100 fee for finding you the right mortgage.
The girl who did it for me at the time found a company who were willing to lend. This was on a self certification...no proof of income. The broker stated I earned 29k a year to secure me this mortgage.

Everyone I speak to now says that this was fraudulent on her part and she secured me a mortgage that I couldn't really afford - being on less than 10k a year salary really. I only realized this a few months ago as I phoned my mortgage company looking to borrow additional sums and was told they only lend to self employed - not employed.
I'm on a better income now - not great though - but have struggled since getting this mortgage - it isn't endowment - I pay mortgage insurance monthly. I barely keep my head above water and end up with debts, borrowing just to keep everything paid.

My friends say that she pushed for this mortgage regardless of how I would end up paying it...and at a time of desperation I just signed everything she handed me...as you do...as long as you know the money is coming...you will.The process took less than an hour as I only had to show her my bank statement and tax credit awards but she didn't have to produce these to the lender she had set up for me.

Was she in the wrong ?? Did she act illegally / fraudulently and would I have any comeback if I pursued this ???

Any advice would be greatly appreciated. Thanks

Did the remortgage achieve the goal of reducing the monthly costs so you could ballance a budget?

Your are earning more now and getting deeper into debt.

Idependant of the mortgage situation you need to get debt advice

You have gone round in a circle consolidating 5 years ago and now think the same again will solve the problem chances are it won't.

You don't clear debts by putting them on the mortgage.

Try the debt free wanabee board they are better at dealing with this sort of problem and can highlight some of your options and how to go about making the right choices this time.

koexelek

Conrad wrote: »

When I turn such applicants away, I later get local feedback that I am rubbish and cant help people!
You really cannot win. When people want to borrow they will sign anything, then when they can't repay they will sue anything.

At least you can sleep at night.
A lot of these brokers are going to realise that the proc fee was not worth it when the sh~t hits the fan and the lenders decode to look in more detail at the original applications.

With rising house prices, the lender's didnt care too much, as they knew they could repossess and get their money back.
However, with prices falling, if the lenders lose out, they might be looking for scapegoats.
As an adviser, the borrower who thought you were brilliant to get them the mortgage in the first place will soon turn on you if they get into a difficult situation.