Compensation for bad mortgage advice?

BallerinaGirl

We recently had a letter from the FSA, advising us that we may be able to claim compensation against the company we were using to give us mortgage advice over the last 4 years., for bad mortgage advice.

On our interest-only mortgage we have gone from £55000 to £104000 over the years, without realising and properly looking into their fees and how they operated, as we were very niave.

Has anyone else ever heard of anything like this and what the outcome was?

This company closed its doors and are now being investigated by the FSA.

luckyfool

Doesn't sound like it was bad mortgage advice per se, more like fraudulent/criminal activity.

There have been rare instances where brokers have actually doctored paperwork and amended the amount people applied for on their mortgages, and taking the extra for themselves. Of course this is more likely to not be picked up where people do not read the mortgage paperwork sent out to them by the lender.

Surely you would have noticed on your statement that your mortgage had nearly doubled in size and queried it?

I fail to see how "bad advice" would turn a £55k mortgage into £104k, there must be more to it than that.

dunstonh

We recently had a letter from the FSA, advising us that we may be able to claim compensation against the company we were using to give us mortgage advice over the last 4 years., for bad mortgage advice.

The FSA only issue that sort of thing when its a directly authorised firm that has been investigated (if it was a networked firm then the network would be doing the letters).

On our interest-only mortgage we have gone from £55000 to £104000 over the years

That isnt achievable with bad advice. Fraudulent activity could cause it but so could you borrowing extra.

It should be noted that the letter you have been sent will be generic and will be sent to all individuals that the firm dealt with in the period of the FSA review. So, it doesnt mean anything is wrong but is putting you on guard that there might be. So, check and find out.

Dan_1976

More info is needed. IT could be number of things.

Conrad

Which mortgage lender are you with? This reads like a low start deferred mortgage which I thought had been outlawed in the in 1990s.

payless

In a previous post you said

Due to past circumstances, we used an excellent company which really helped us out as this was a council house and they were a company which came to our home, took all our details and went out there and found us the best deal for our circumstances, they charged no upfront fees and based on our past and poor credit history, it always worked great.

have you had arrears on this mortgage, or further advances or even " remortgaged - perhaps in house" and paid early redemption fees- added to the loan?

If the firm is no longer trading I suppose no harm is detailing the firm giving the " bad advice"