mortgage missold - what to do

apache2020

Hi

Way back in 2006 I requested advice from a mortgage broker who found a suitable 3 year fix that I thought I signed up for.
However when coming to remortgage (armed with my new money saving knoweledge) I have found that I am locked into a 5 year deal that is not on the original keyfacts document.

The trouble is the mortgage broker is now defunct and has been struck off by the FSA (I wonder why) and the BS who gave me the mortgage are saying that we have signed the paperwork for the 5 year deal.

Do I have a leg to stand on? I genuinely thought it was for 36 months but now feel locked into an extended uncompetitive deal with a significant ERC.

Your advice would be appreciated, the BS advised to go back to the broker so you can see my problem.

David

apache2020

btw - the individual in question who sold us the mortgage is on the FSA strike off list

With effect from 21 May 2008, we have prohibited Mr Byron Brown, who is the Principal of two authorised firms (Millbank Consultancy and Millbank Mortgages), from performing any function in relation to any regulated activity carried on by any authorised person, exempt person or exempt professional firm.

:mad:

GMS

What was on the mortgage offer?
This is the document you agreed to when you signed the mortgage deed.
The broker should have provided you with a Key Facts which matched the offer, and a suitability letter reflecting the product.
Did you receive these?

apache2020

Hi

Looking back through the paperwork the KFI did not match the offer. Unfortuanetly the offer is for 5 years and the KFI from the broke is for 3 years.

However I foolishly signed the offer as at the time we are getting married and we had a million things to do, I should have checked it with a fine toothcomb but I foolishly thought it was the same as the KFI from the broker, an expensive mistake!

opinions4u

I think you're going to struggle to progress things, but all is not lost ... yet.

You can contact the lender and ask them how the deal became a 5 year one when you were under the impression that it was 3 years.

If a mis-sale can be proved (which I suspect it won't be) the FSCS will cover the liabilities of the seller and you would receive compensation from them.

How to go about things? Others may have better knowledge than me, but the FOS site states:

If you're not sure who to complain to at the business or company involved, get in touch with us. We will contact the right person there for you, telling them that you have a complaint they need to look into.

So for me you should pursue things, but do so without expecting success.

Out of interest, what rate are you paying, and what rate would you now be paying if it had been a 3 year deal?

apache2020

Hi

Thanks for the useful info, I will look into the FOS and the FSCS schemes.

I am now paying 5.15% instead of 4.99%, not a huge difference until you conside the extra 2 years with the current BOE rate

_Andy_

You have a good rate and security for another two years though. 5.15 is pretty decent.

opinions4u

apache2020 wrote: »

Hi

Thanks for the useful info, I will look into the FOS and the FSCS schemes.

I am now paying 5.15% instead of 4.99%, not a huge difference until you conside the extra 2 years with the current BOE rate

Don't pursue it. Waste of time if you are continuing to live there and can't afford to repay the mortgage from savings.

The dodgy broker has probably done you a favour ... the extent of which will be clear at the end of your 5 years.

What do you think that 4.99% will be at the end of next year? Lower, the same, or higher?

GMS

apache2020 wrote: »

Hi

Thanks for the useful info, I will look into the FOS and the FSCS schemes.

I am now paying 5.15% instead of 4.99%, not a huge difference until you conside the extra 2 years with the current BOE rate

Out of interest what is the amount outstanding on the mortgage, and what is your property worth?

Thrugelmir

apache2020 wrote: »

Hi

Looking back through the paperwork the KFI did not match the offer. Unfortuanetly the offer is for 5 years and the KFI from the broke is for 3 years.

However I foolishly signed the offer as at the time we are getting married and we had a million things to do, I should have checked it with a fine toothcomb but I foolishly thought it was the same as the KFI from the broker, an expensive mistake!

Would you buy a car without checking that it would pass an MOT?

Be difficult to claim for mis-selling as you remortgaged in 2006. Three years on is 2009. We're now heading towards the end of 2010. So my maths makes that 4 years.

Why didn't you raise a complaint when you thought the fixed term was due to end (a year ago?). Or were you too busy?