Mis Sold Mortgages - Do I have a case

slg_sue

I am trying to find out if I have a case against a mis sold mortgage, and if so are there any template letters etc, that I can use to start a claim.

My situation 4 years ago when we took the mortgage out is a follows:-

(A) OH working full time on a salary of £17K - Myself homemaker with tax credits and child benefit approximating £6K per annum.
(B) Did not understand about the commissions being paid by lender to broker or that their fees would be added to the mortgage.
(C) Self-certifying our income to make figures fit - neither of us were self employed - our combined income was £23K per annum and the mortgage was for £114K
(D) We had a secured loan on the property which the broker was aware of

The reason I would like to claw back some form of compensation is simple, and TBH may sound greedy. Capstone are my lender and in the past year they have tried to take my house 3 times, I am in court on Wednesday to try and have the eviction suspended as our circumstances have changed considerably and it is my belief after going through their statement that of the £3719 arrears £2800 of them are fees and charges, but thats another story now in the hands of FOS.

Any advice would be welcomed. Thanks in advance

opinions4u

So why do you think the mortgage was mis-sold?

FraudBuster

Self-certifying our income to make figures fit -

Mortgage Fraud?

slg_sue

I think we were mis sold because at that time there was no way we could afford that mortgage, we did not know anything about the terminology being used with self-certifying. We honestly believed and were given the impression that by self certifying all we were doing is saying that we could afford the mortgage. We did NOT alter our income figures that was done back at the office after the broker visited without our knowledge.
If the facts had been presented properly and we were informed of the true monthly cost of the mortgage, there is no way we would have gone that route, we believed that we would be better off each month not £300+ worse off. We had a discounted rate for the first 3 months which is about the only figure the broker talked about!
I would like to say, I am in no way expecting that we should have this mortgage written off, we took it on we suffer the consequences, but my family has struggled more of less since the day we took this mortgage on and I feel we deserve some form of recompense. The broker knew what we wanted to hear and told us exactly that. He should have told us the full TRUTH and then we could have made an informed decision

beecher2

If you knew you couldn't afford the mortgage, why did you take it on? Ultimately it was your responsibility and you signed off the fiddled figures. You're due no recompense for a mortgage you agreed to.

slg_sue

As I said before the only repayment figure that was spoken about was the discounted figure, sorry to sound blunt but we signed the forms in front of the broker, before he fiddled the figures, so no we did not sign off on the fiddled figures.
It seems to me that if you want to claim back money for PPI's which were not explained properly, bank charges which were incurred due to not controlling your bank accounts properly, fees added to debts because you didnt pay them that is fine. But when you are in a position that something like a mortgage was not explained to you accurately and you felt pressured into taking it, then you have no leg to stand on. In my opinion, double standards. After all that is what most people state on reasons for PPI mis selling.

Thrugelmir

You would have read and signed a completed mortgage application form. Was this factually correct?

You would have received an offer document detailing important facts regarding the mortgage. Did you read it before signing the offer letter?

dunstonh

I think we were mis sold because at that time there was no way we could afford that mortgage

Thats not being mis-sold. That's you failing to budget correctly.

If the facts had been presented properly and we were informed of the true monthly cost of the mortgage, there is no way we would have gone that route

The problem with that is you would have been supplied a key features illustration that tells you the cost of the mortgage (both setting up and the payments and an example future amount when deal ends). It is also pretty unrealistic to believe that someone would have gone ahead with the mortgage not knowing what the monthly cost was and still choosing not to read anything they were sent.

The broker knew what we wanted to hear and told us exactly that. He should have told us the full TRUTH and then we could have made an informed decision

The problem with that comment and a number of the others is that you are unlikely to have any proof to support it. You have already admitted that you didnt read the KFI and offer letter (would have told you payment information and charges/fees/commissions). So, if the broker has the documentation on file to support the recommendation, you dont have any real chance of success unless you have proof to back up your accusations.

I dont mean to be harsh but they are not going to accept what you say without evidence. They will look at the brokers file to see if there is anything there to support your claims (like the application form having alterations which you have not initialled or signed). However, you will need evidence to support your claims.

(A) OH working full time on a salary of £17K - Myself homemaker with tax credits and child benefit approximating £6K per annum.
(B) Did not understand about the commissions being paid by lender to broker or that their fees would be added to the mortgage.
(C) Self-certifying our income to make figures fit - neither of us were self employed - our combined income was £23K per annum and the mortgage was for £114K
(D) We had a secured loan on the property which the broker was aware of

Point A - So, you had £23k and borrowed £114k. Thats under 5x and within tolerance for the credit boom.
Point B - thats all disclosed and on the documentation.
Point C - Did your mortgage application state you were self employed or employed?
Point D - The lender would have been aware of it as well as they wouldnt miss the charge on the property.

It seems to me that if you want to claim back money for PPI's which were not explained properly, bank charges which were incurred due to not controlling your bank accounts properly, fees added to debts because you didnt pay them that is fine. But when you are in a position that something like a mortgage was not explained to you accurately and you felt pressured into taking it, then you have no leg to stand on. In my opinion, double standards. After all that is what most people state on reasons for PPI mis selling.

Loan and credit card PPI is easy as the companies have little or no audit trail. Plus they are sold. Mortgages are bought and you seek legal advice and they come with risk warnings. They also record your personal info and write to you outlining the key terms (like most of the things you deny ever seeing). You also have to sign the offer letter before you proceed. So, no pressure there.

opinions4u

slg_sue wrote: »

I think we were mis sold because at that time there was no way we could afford that mortgage, we did not know anything about the terminology being used with self-certifying. We honestly believed and were given the impression that by self certifying all we were doing is saying that we could afford the mortgage.

The bolded bits contradict themselves. I wouldn't use this as the centrepoint of a mis-selling claim.

We did NOT alter our income figures that was done back at the office after the broker visited without our knowledge.

Can that be proved?

If the facts had been presented properly and we were informed of the true monthly cost of the mortgage, there is no way we would have gone that route, we believed that we would be better off each month not £300+ worse off. We had a discounted rate for the first 3 months which is about the only figure the broker talked about!

Did you recieve a key facts document?

The broker knew what we wanted to hear and told us exactly that. He should have told us the full TRUTH and then we could have made an informed decision

It will boil down to the documents that recorded the transaction.

By all means pursue a complaint, but it looks to me like you would have entered in to the mortgage contact anyway. Is the broker still trading?

slg_sue

Well thank you all for your opinions, some of them more helpful than others. I came on here for advice, which I thought was the point, not to have a roasting on how unknowingly irresponsible I was at a time when I was suffering from PTSD. My husband and I have worked our backsides off to provide for our family and will continue to do so.
I am going to look further into this as you are given key facts regarding PPI's and most people choose not to read it but take the PPI anyway it is my belief that the notes kept by the brokerage would probably not be that fantastic, and I am assuming please correct me if I am wrong that if they are no longer in business as is my suspicion I would need to go to the FSCS.

_Andy_

Do be aware that by raising it formally you're admitting you committed mortgage fraud.