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Letter from broker about 'mortgage inappropriate to my needs'

I have received a letter from the broker who arranged my re-mortgage 3 years ago stating that the mortgage recommended to me may have not been appropriate and listed a number of reasons including

Mortgage recommended would take me beyond retirement age
Previous mortgage had a settlement fee which was added to mortgage

Any ideas what this is about?

It includes an I&E questionnaire.
Debts at LBM - Mortgages £128497 - non mortgage £27497 Debt now £[STRIKE]114150[/STRIKE][STRIKE]109032[/STRIKE] 64300 (mortgage) Credit cards left 0



"The days pass so fast, let's try to make each one better than the last"

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    It sounds like they have been investigated for poor advice and are taking steps to identify any customers who have been on the receiving end of this.

    Fill in the form honestly and return it.

    This will help somebody make a decision as to whether or not your are entitled to compensation.
  • The FSA continues to take a robust position with firms as soon as we have evidence of wrong doing and also to ensure borrowers are treated fairly throughout the lifetime of their mortgage.

    http://www.fsa.gov.uk/pages/Library/Communication/Statements/2009/mortgage_arrears.shtml
  • gilligansyle
    gilligansyle Posts: 4,124 Forumite
    Thanks for that, had tried to research this but had found nothing. Was not sure what the purpose was.

    Have got the form with me so will fill it in and see what happens.
    Debts at LBM - Mortgages £128497 - non mortgage £27497 Debt now £[STRIKE]114150[/STRIKE][STRIKE]109032[/STRIKE] 64300 (mortgage) Credit cards left 0



    "The days pass so fast, let's try to make each one better than the last"
  • dunstonh
    dunstonh Posts: 118,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It doesnt mean it is a mis-sale. It could be but it may also be a check.

    The wording suggests that it could be a client file review that has found documentation missing and therefore they cant sign off on the file as being compliant. Or it could be that the person involved has had a complaint upheld and they have decided to review of sample of other cases to see if there is a trend.

    In this case, it looks like the file did not adequately document the fee being added to the mortgage and the term going beyond retirement. Both of which can be quite justifiable but also can result in an upheld complaint.

    You should answer honestly. It will have no impact on your mortgage or you personally.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The settlement fee would be checked to ensure that the new mortgage looked cheaper for you after allowing for the cost of the settlement fee. You'd probably have discussed that with the broker when you took out the mortgage. The past retirement part would mean that you'd have to have some plan to repay, either sufficient income in retirement or a plan to pay off the mortgage before then or sell the property and downsize, perhaps.

    Basically a check that the broker considered these things and discussed them with you or that you were aware of them.
  • gilligansyle
    gilligansyle Posts: 4,124 Forumite
    Have sent off the replies, as some have said, i can't remember whether it was discussed or not, but presumably it should have been documented. Like most people I would plan not to still be living in a 3 bedroomed house when I retire, and will probably downsize before then.
    Debts at LBM - Mortgages £128497 - non mortgage £27497 Debt now £[STRIKE]114150[/STRIKE][STRIKE]109032[/STRIKE] 64300 (mortgage) Credit cards left 0



    "The days pass so fast, let's try to make each one better than the last"
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