Guardian in touch again re;misselling

dunstonh

vinno65 wrote:

And firms are giving them mortgages??
regards Vinno

Yes.

Although they go a little further to point out affordability in retirement nowadays and some require evidence as well.

You know its daft, I know its daft but people do daft things.

As I have said before, just look at all the people that are borrowing money up to the hilt to purchase a buy to let property without knowing any of the risk. Look at all the interest only mortgages being done in hope of that they can afford it later. Borrowing into retirement, with the hope of future pay rises, pension, inheritance (yes, I know one case where a guy has gone interest only because he expects his parents to be dead before he retires and he will use the money from the estate) is just one of the things people will do to get on the ladder or reduce their expenditure now.

Putting off til tommorrow what should be considered today.

aloiseb

We ended up with the present huge mortgage repayments due to one silly mistake back in 1988......believing that property prices in London could only rise! Three years down the line, = huge negative equity, and having to borrow a lot so as not to have to bring up our babies in a one-bedroom flat.

"I predict a riot"......

Bennifred

Well!!! I read this thread with interest because I too had a complaint to Guardian rejected several years ago and basically gave up on them.
Today I have received a letter saying that on reflection they'd made a mistake, and offering £5200 in compensation :j (on a policy costing £34 per month taken out in 1991 for a mortgage of £23000 over 20 years - this was an "extra" in addition to the main mortgage). The letter says the compensation has ben worked out assuming the surrender value of the policy is currently £8400. Given that I've just arranged for this bit of the morgage to be changed from interest-only to capital-and-interest, should I now be thinking of surrendering the policy?? I guess I should use the compensation payment to reduce the outstanding mortgage (luckily it will be a totally flexible tracker from end of August).
Any advice gratefully received - and fingers crossed for any other Guardian complainants!

regularsaver1

I have seen people that I say we would recommend they finish mortgage by the age of 65 - but some still say they can work until 70 - as long as an income reference is provided by employer saying they can work until 70 then some people argue that they can go beyond 65 with a mortgage

No advice there

I have had a lot of people saying to be about the fact the normal retirement age is increasing anyhow

Proof of repayment into retirement has to be taken into consideration of course - but some people DO ASK FOR IT for their own reasons

Dunstonh - I agree with what you are saying and some of the comments you have made re interest only mortgages and the reasons people take it. See, its not always advisers people

parsnip

I too have received aletter from Guardian today. Can anyone advise if its best to provide mortgage details as requested or let them calcualte using the standard halifax rates.?
My morgage is with Nationwide taken out in 1993 for £21500. I converted £13000 of the mortgage to repayment about 4 years ago when I got the red warning letter.
Thanks
Angie

Bennifred

Can't really advise - they didn't ask me for any details - just got the compensation offer

regularsaver1

parsnip - why would you use halifax rates if you are with nationwide?

EdInvestor

The Halifax rates are used as the default for calculating compo if people don't can't supply the actual rates they paid ( eg if they remortgaged a lot over the years and getting hold of the info is too difficult.)

regularsaver1

oh right - well Halifax SVR is 6.5% is you guys what to use that

tanith

Received today an offer of compensation of £15,030.42 my husband nearly had a heart attack when he read and reread the letter we got from Guardian this morning... never in our wildest dreams did we imagine we would be offered this much compensation....

A big thankyou to all who offered advice on this site , I would probabely left the paperwork in a box if it were not for all the info I gleaned from here.. we are so stunned we have not even thought about how we get the best use of this money yet . I am sure I will be looking for more advice here once I climb down from the ceiling :T :T :T OH hasn't stopped grinning this morning :rotfl: