Mis-sold an interest only mortgage? Is there such a thing! Advice please

Boxer_Lover

Hi there, I've just been contacted by the broker who I got my mortgages from and he's said that there was a possibility that I was mis-sold some of them from him and that the minimum compensation was £5,000 ... he wouldn't discuss it over the phone and I have to go in for about a 30minute discussion, however, the mortgages I took out were only ever interest only (I already had well established endownments that will mature OK in a few years).

Has anyone heard of this - compensation for being missold an interest only mortgage?

Any comments would be appreciated.

Thanks very much

Dan_1976

Not sure, he is either looking to cash in or cover his back side. Wait for one of the brokers to pop by, they will know.

dunstonh

Has anyone heard of this - compensation for being missold an interest only mortgage?

Yes. Its possible that the broker has been told go back and review all interest only cases to ensure suitability. However, you wouldnt normally specify any redress level or even if redress is applicable (as in many cases there wont be). If you had the interest only mortgage covered by and endowment, then it seems strange to think that they could be considered a mis-sale. These cases are normally covered only in writing and the broker that sold them isnt meant to contact you.

That makes me think it may be something else.

Some ex mortgage brokers have moved on to become claims reps. Its possible that he is trying to get you to put in a complaint against his ex employer (or whoever) with a view to collecting some of your redress payment (if any) or may even ask you to pay some money up front. Be wary of this if it is the case.

McKneff

Some ex mortgage brokers have moved on to become claims reps. Its possible that he is trying to get you to put in a complaint against his ex employer (or whoever) with a view to collecting some of your redress payment (if any) or may even ask you to pay some money up front. Be wary of this if it is the case.

This is the scenario that seems the most likely, be careful,

Boxer_Lover

Thank you very much for your comments and advice - that's very interesting because he works for himself you see and always has .... I will give him a ring and remind him that I took interest only mortgages out with him and ask him to go through my file before arranging to go in. Thanks again for your comments and advice very much appreciated.

FraudBuster

And don't pay any money up front to enable him to investigate your case.

maninthestreet

Would you trust someone who seems to be admitting he mis-sold you a mortage?

Boxer_Lover

Hi thanks for you additional comments :-) ...... however, sorry to be a pain but just been on the phone to him and he's said its not a mis-sold issue, its to do with if the agreements complied with the consumer credit act !!! Anyone heard of this?

McKneff

maninthestreet wrote: »

Would you trust someone who seems to be admitting he mis-sold you a mortage?

Exactly what i thought when i read the OP

dunstonh

however, sorry to be a pain but just been on the phone to him and he's said its not a mis-sold issue, its to do with if the agreements complied with the consumer credit act !!!

It's a scam and it tells us what type of person this is. You should refuse to have any dealings with him again. Compliance departments have issued warnings to advisers not to get involved in this. Only the dodgy advisers are doing it.

There have been no successes on mortgages on what he is claiming and only a tiny number of loans. Since the courts made some rulings in December on 6 test cases (which all found in favour of the lenders) there is now seen to be very little way of getting out of paying the debts you agreed to. One of the other things the courts cleared up was that lenders are allowed to keep your debt on record as being in arrears even if its found to be unenforceable. Therefore preventing you from getting credit again. In the case of a mortgage you would still have to repay when you sold the house and the lender can still charge interest on it.

Boxer_Lover

Thanks very much Dunstonh, I've cancelled my appointment - your advice and information has been very much appreciated.