Repossessed House

Nick1973

Hi I hope someone can help me with this.

I had a house which had an Oakwood Homeloans mortgage on it and a Northern Rock Loan. Due to circumstances and life changes I suddenly found myself in a situation where me and my partner had to move, however this meant keeping the house running on a mortgage so I decided to rent. At the time I wasn't aware that I was in breach of the mortgage conditions.

I'd struggled to keep up payments on both mortgage and loan and eventually after 6 months of renting the house out to tenants I decided it was time to sell so I gave them notice. This was in the tenancy agreement and was made clear to the tenants upon renting the property that I may well sell in 6 months.

However because I fell into arrears the Oakwood started repossession and Northern rock secured the loan against the property. Also the Oakwood said I had breached the mortgage terms so they had a right to repossess despite the debt.

The property is currently up for sale through HAART however I have not heard a thing from Oakwood or Northern Rock for over a year and since I started looking into an IVA.

However I believe now that I may have been missold the mortgage since I'm self employed and don't really have a salary. More a case of drawing money when its available. At the time when I took out the mortgage and Northern Rock loan I was in exactly the same situation, and I recall the mortgage advisor saying something about bunking up my income in order to secure the mortgage. I didn't think anything of this at the time as all I wanted was to buy a house, however I now realise that he may have breached terms and conditions of selling since he asked me to inflate my income/lie about it in order to secure the mortgage.

So please can somebody help me and let me know if I have a case for a missold mortgage and if I can claim any compensation for the stress and hassle the whole situation has caused.

Many Thanks

Nick

beecher

You agreed to the mortgage being set up while knowing you couldn't afford it so I don't see how you have a case for compensation. You signed the mortgage application after all.

ILW

Nick1973 wrote: »

However I believe now that I may have been missold the mortgage since I'm self employed and don't really have a salary. More a case of drawing money when its available. At the time when I took out the mortgage and Northern Rock loan I was in exactly the same situation, and I recall the mortgage advisor saying something about bunking up my income in order to secure the mortgage. I didn't think anything of this at the time as all I wanted was to buy a house, however I now realise that he may have breached terms and conditions of selling since he asked me to inflate my income/lie about it in order to secure the mortgage.

I would not recommend this as you will probably get prosecuted for fraud. You knowingly lied about your income on the application, albeit on the advice of a broker.

betmunch

You are the one that has commited the fraud by signing the mortgage application.

I dont think there is any claim for mis-selling unless the product is doing something you was told it wouldnt. However there is a claim for encouraging mortgage fraud, but I doubt this will get you out of trouble. Maybe it will?

If you wish to take the broker down with you then you should report him/her to the FSA.

If he has covered his tracks though, then he will have recorded your income at the higher level stated.

It seems your in a bit of a stick situation to say the least

Good Luck

FraudBuster

You lied on your mortgage application.

You broke the terms of your mortgage agreement.

Check out The Fraud Act 2006.

Dan_1976

He told you about bunking up, yet you still went for it. You made your bed etc

:money:

ad9898_3

Nick1973 wrote: »

However I believe now that I may have been missold the mortgage

You're not serious are you.

Nick1973 wrote: »

I recall the mortgage advisor saying something about bunking up my income in order to secure the mortgage.

Hard to prove, and you signed the document, I wouldn't try to go any further with this one, otherwise the bank that gave you the mortgage will haul you on front of the courts for fraud.

eek

You lied and obtained money by deceipt (which is fraud whatever you think or say).

Be glad you are being repossessed and not being presecuted for it but if you are foolish enough to continue complaining that may change.

See http://forums.moneysavingexpert.com/showthread.html?t=1493575 for an example of what may happen.

So accept the repossession, pay off the shortfall and pray the bank don't want to make an example of you and you don't end up in prison.

Walter_J

If you are repossessed your credit rating will be trashed and you will still have to pay any shortfall on the mortgage, as well as being liable for all other debts you may have.


If you are repossessed and go bankrupt your credit rating will be trashed (but no more so) and you will have all your other debts written off immediately, including the mortgage shortfall and any income tax you may owe under self-assessment.

As a self-employed person it is unlikely that you will be liable to any Income Payments Agreement as it would be assessed on your income as declared to HMRC, and therefore on the low side!

Going bankrupt will not affect your ability to earn a living as a self -employed person, athough you will have to make alternative banking arrangements.

Look into it - I suspect you will find it a no-brainer!