Redstone Mortgages ( Beacon) - Complaints

banks4u

Dear all, I was wondering if anyone has had any dealings with Redstone or dealing with complaints with brokers that submitted the applications to Redstone.
I am a Mortgage Compliance officer and I need help, Basically my friend I realised I think has been misadvised by the broker that recommended Redstone. I was going to make a data request to Redstone for all personal information to see what information was submitted.
I used to be a mortgage underwriter in the past and I know that brokers used to mis-sell mortgages. I thin the first step for me to to request data from Beacon, see what was submitted to them. There rates are so bad. I am sure it wasn't affordable to the client, also no fact find was clearly recorded.
AFter that I am planning to make a complaint to the broker and if they reject the compalint will go to FOS and escalate to the Ombudsman.
I know how subprime works so really if anyone has ever had any complaint about beacon your help is much appreciated. Also I know all about TCF and I am sure Beacon charging 13% rates is not really Treating customers fairly. Any help is much appreciated.

GMS

Redstone is not the lender, Beacon is. Don't remember them having rates of 13% though.

Surely as a Mortgage Compliance Officer you would know how to deal with a complaint with a broker, lender, or any other interested party?

As a former mortage underwriter have you asked your friend if there was any reason for Beacon being recommended at the time such as adverse credit or no proof of income?

Chances are the application to Beacon was done through a packager so they will have the clients signed app forms etc.

Out of interest when was the mortgage taken out? Why has it taken until now to decide mis selling? Repossession proceedings perhaps?

FraudBuster

Check out:

The Fraud Act 2006

http://www.legislation.gov.uk/ukpga/2006/35/contents

banks4u

Yes Beacon were the lender and a bad lender at that, I heard many stories about them in the past from previous underwriters. Redstone actually hold the mortgage now and have spoken to them and they state that they hold all the paper work relating to the mortgage. I do know how to deal with a complaint, but just wanted to know if anyone else had ever complained about a beacon mortgage via a broker/packager.
The reason for the complaint now is we were just talking about mortgages and they stated they have a mortgage with Beacon with very high interest rates, having worked at sub prime before, I do not understand why the packager/broker would have recommended Beacon, they had high rates compared to the rest of the sub prime market.

They said that they didnt have any adverse and did self cert income as they are self employed. Why not choose Abbey or Northern Rock?

banks4u

Cool thanks

GMS

If your friend had no adverse credit they would have been on a 'near prime' rate from Beacon. Rates should be nowhere near 13%

When was it taken out?

A packager would not recommend a product, the broker would so difficult if not impossible to prove any mis selling by the packager.

Which packager did the case?

Could they not remortgage now to a better lender or are they unable to prove income?

flammable999

I got my mortgage with Redstone\Beacon in October 2008 just before the recession kicked in and had adverse credit all over the place, and even then my rate was 7.18% so I find 13% hard to believe.

Conrad

OP - you say they were self cert, but question why N Rock / Abbey were not used. Well those prime lenders never did self cert - they had a fast track underwriting system, but that is nothing like a self cert offering as all such clients may be required to proove income at any time, even after completion.

Why don't you just make the complaint to the broker and see how they justify the advice? I take it your'e getting a nice cut of any compensation, lol!!

aimzrabbit

we have beacon/redstone product completed in 2009 at 5.75 % had no problems with redstone or dodgy dealings

sounds to me like a dodgy broker loading up a product before beacon finished last year