Mis Sold Mortgage HELP!!

vette376

Hi, I was due for re-mortgage in October last year, but the building society where able to start a new agreement in September if we stayed with them. Now here's what happened -

1) I was told that I had only 1 option of a fixed term mortgage until 2013 with a rate of 7.39% because the loan to equity value on my home was too low.
2) I was not given any options what so ever, and based on the financial climate etc.. I felt I had no other option but to accept.

Now as you are all aware the interest rate is as low as it can be, and if I had been offered a variable rate things would be totally different.

I contacted the building society to see what they could do, and they told me -

1) I would have a penalty of £7,000 to pay to get out of the fixed term
2) I would have to pay £5,000 off the capital of my mortgage to increase my equity.

£12,000!!!!!!!!!!!!!!!!!!!!

I have no idea what figure they are using for my home value, but it is so far out it is not normal, I have at least 30% loan to equity which is not in any way less than 20% as they are claiming. But for me to prove this I have to pay for an independant valuation at £50.

I feel absolutely ripped off and hope that someone can help me. Is there anything I can do????

getmore4less

You could have just stayed on the follow on rate when the promotional rate finished.

Why did you think you had to remortgage?

Mortgage_Help_4

I am afraid it sounds like you were bullied into a new deal probably with the lenders marketing tactics. Unfortunately most lenders or direct deals do not offer advice as they trade on a basis of information only and all offers of products etc arte subject to status and asome scripted questions to allow the computer to say yes or no and churn out some quotes for you to select. Therefore if you deal with them on an information only basis then you will have probably no comeback. Check your paperwork for the advsiers Initial Disclosure Document which should tell you the type of service i.e. advice or information.

Best of luck

opinions4u

vette376 wrote: »

Hi, I was due for re-mortgage in October last year

Nobody is ever "due" to remortgage. It is an active choice that many will make.

but the building society where able to start a new agreement in September if we stayed with them.

Not unreasonable.

1) I was told that I had only 1 option of a fixed term mortgage until 2013 with a rate of 7.39% because the loan to equity value on my home was too low.

Did you know that you could do nothing and stay on their SVR? Or did you think the SVR was high at the time?

2) I was not given any options what so ever, and based on the financial climate etc.. I felt I had no other option but to accept.

You have stated that you knew you could remortgage. Did they force you in to the deal, or did you sign it becuase you couldn't be bothered shopping around?

Now as you are all aware the interest rate is as low as it can be, and if I had been offered a variable rate things would be totally different.

You presumably had the variable option of their SVR.

I contacted the building society to see what they could do, and they told me -

1) I would have a penalty of £7,000 to pay to get out of the fixed term
2) I would have to pay £5,000 off the capital of my mortgage to increase my equity.

£12,000!!!!!!!!!!!!!!!!!!!!

Which you agreed to at the time of accepting the deal.

I have no idea what figure they are using for my home value, but it is so far out it is not normal, I have at least 30% loan to equity which is not in any way less than 20% as they are claiming. But for me to prove this I have to pay for an independant valuation at £50.

What better way to confirm value than getting a valuer to do it?

I feel absolutely ripped off and hope that someone can help me. Is there anything I can do????

If you feel ripped off because you took a fixed rate and variable rates subsequently fell, then I'm afraid it's a case of tough luck.

If you feel ripped off because they said "you've got to have this and you're not allowed to remortgage and there's no SVR for you to go on to" then you have a case.

Rates went against you. It's tough luck in my book.

dunstonh

I feel absolutely ripped off and hope that someone can help me. Is there anything I can do????

I cant see any problem here to be honest.

Your current deal was expiring but you made the choice to go with a new deal rather than stay on the tracker/SVR that you would have moved on to.

The deal that you chose was limited as your equity position meant you didnt have a lot of choice on deals. So, you went with that rather than go with SVR/Tracker. That decision, in your eyes, hasnt paid off.

£12,000!!!!!!!!!!!!!!!!!!!!

Not a surprise though is it. £5000 is to reduce your equity and £7000 is to buy yourself out of the deal you chose to go into. You didnt have to buy that new deal.

Is it possible that you dont realise that mortgages dont renew or that you dont have to buy a new deal each time one expires?

Mortgage_Help_4

The posts are true however the way some lenders try and pounce on their existing customers to get them off their SVR is amazing as having seen many letters from various lenders they are not worded in favour of the clients as they make out taht the client has to in their general content. If the lender recommended a chat with their introducing broker then maybe these things would not happen as the lender should redirect the clients back to the brokers who set the deals up in the first place.

opinions4u

Mortgage_Help wrote: »

If the lender recommended a chat with their introducing broker then maybe these things would not happen as the lender should redirect the clients back to the brokers who set the deals up in the first place.

Surely any broker with an ounce of sense would be in touch with the client before a deal came to an end anyway.

Freddie_Snowbits

I was told by a certain Bank in 1999 that I would be lucky to get a mortgage, and the CA firend rang me with an offer of about 13%

Obviously, I walked! And I got about 5% as well.

not_tonight_josephine_2

interesting article on this topic in today's Times:

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6877998.ece

Gorgeous_George

People should not be allowed to get a mortgage if they do not pass a test to prove that they are financially competent.

GG

dunstonh

not_tonight_josephine wrote: »

interesting article on this topic in today's Times:

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article6877998.ece

That should not be a surprise. Banks have sales targets and retention could form a part of that. They can only offer what they offer. Putting someone on to a deal secures the lending for a period. Letting the person stay on the SVR or an untied tracker allows the person to move when they like.

When you see a sales rep at a bank then you are going to get sold to. You should not be surprised by that.

Also, buying a fixed rate is rarely about getting the best price. It is about securing a guaranteed monthly repayment that cannot go up.