Mis-sold sub prime mortgage

notveryhapi

Hello

Just need some advice please regarding a company that has contacted me regarding being mis-sold a sub-prime mortgage

Does any one know what angle this type of company may have on mis-selling sub prime mortgages in general

Is it affordability, high rates, broker fees they complain about and what would the likely outcome be ?

Finally would it be worthwhile submitting a claim myself.

I took the mortgage out to repay unsecured lending whilst working on a contract basis. The current SVR is shocking with a long redemption penalty period and it was a broker that arranged the mortgage for me.

Regards

GMS

Why do you think ot was mis sold?

Ignore anybody who contacts you. They will want money from you to proceed with a claim.

What rate is the 'shocking' SVR?
Did you self cert?
Did you have any adverse credit?

dunstonh

Just need some advice please regarding a company that has contacted me regarding being mis-sold a sub-prime mortgage

Another attempt by dodgy claims companies to generate more cashflow before they are shut down.

Does any one know what angle this type of company may have on mis-selling sub prime mortgages in general

Anything can be mis-sold potentially. Claims companies at the moment seem to just phone up and tell you that you were mis-sold. I had one tell me that I was mis-sold insurance despite me being an IFA and obviously arranging my own insurances.

Is it affordability, high rates, broker fees they complain about and what would the likely outcome be ?

None of those alone are issues that will result in succes if you complain.

Finally would it be worthwhile submitting a claim myself.

How were you mis-sold?

I took the mortgage out to repay unsecured lending whilst working on a contract basis. The current SVR is shocking with a long redemption penalty period and it was a broker that arranged the mortgage for me.

Need answers to GMS's questions to comment on that. However, one comment is that its sub-prime. It will be more expensive as you are higher risk. Risk is priced into the rate.

notveryhapi

Thanks for your response

What rate is the 'shocking' SVR? - Its with the Cheshire Mortgage Corporation - around 12/13%

Did you self cert? Was not a self cert - verified by pay slips

Did you have any adverse credit? Had missed loan/credit card payments (no ccjs or iva etc)

Why do you think It was mis sold? -

What I am asking is what would the company be looking to complain about?
I went through a mortgage broker who would have got me the deal with probably the only company lending to adverse clients at the time (June 2008). The terms and conditions are not good but I appreciate I signed for them at the time as I had to get myself out of a debt.

Kind regards

opinions4u

notveryhapi wrote: »

Just need some advice please regarding a company that has contacted me regarding being mis-sold a sub-prime mortgage

First of all, ignore the company that have contacted you.

Does any one know what angle this type of company may have on mis-selling sub prime mortgages in general

They will promise you £thousands, ask you for an up front fee and then deliver nothing for you.

Is it affordability, high rates, broker fees they complain about and what would the likely outcome be ?

You need to state the case. Affordability? Well you applied for the mortgage.

High rates? Well you agreed to the deal. Is there anything about the deal that was inappropriate for your needs (e.g. you stated you were worried about variable rates and they sold you a variable rate)?

Broker fees? Well if they were disclosed at the right time then you have no complaint.

I took the mortgage out to repay unsecured lending whilst working on a contract basis.

Did the deal improve your financial position, or improve it? What would have happened if there had been no mortgage arranged?

The current SVR is shocking

What is it? Who's the lender?

with a long redemption penalty period

How much is the house worth? What is the balance of the mortgage? How big is the penalty? At what point is there no penalty?

Not clear that the deal was inappropriate. More information needed. But don't use somebody who's coldcalled you.

EDIT: Just seen your post above mine.

I went through a mortgage broker who would have got me the deal with probably the only company lending to adverse clients at the time

If that's the case, then it's not a mis-sale. If you can show that the broker could have sourced a more appropriate deal for you, then that's a starting point.

Out of interest, is this in any way a part commercial mortgage?

GMS

Cheshire Mortgage Corp are high rates and have a 6 or 7 year tie in. They were a lender of last resort before the credit crunch.

Without knowing your circumstances it is difficult to say but there may have been other options for you at the time.

The mis sold claims compnay should be ignored.

When you took out the Cheshire deal did your broker provide you with a list of sourcing results?

Did you have a Suitability Letter?

The broker should have given a reason as to why Cheshire was the best deal.

Did you have a mortgage elsewhere at the time? If so a second charge to repay your debts could have been an option.

_Andy_

So it wasn't mis-sold then. Next please!

dunstonh

What I am asking is what would the company be looking to complain about?

Anything and everything even if there is nothing. The dodgy claims companies (which is the majority unfortunatly) make most of their money from the up front fees you pay. Not any cut of any hypothetical redress. Many have failed and gone into administration taking the up front fees with them. In some cases, prosecutions are taking place.

Any product can be mis-sold. Some are more prone than others. Pension contracting out for example was a frequent claims company cold call promising thousands of pounds of redress for mis-selling. It got to the point where the FSA decided to investigate and they found that only 1.5% of people had been potentially mis-sold. A really low failure rate. Yet claims companies went on phoning and telling people they had been mis-sold only on the basis of whether they were contracted out or not. People paid their £495 fee only to be rejected with no redress paid and £495 out of pocket.

Claims companies are about as close as you can get to a legalised scam at present.

notveryhapi

Thanks for your responses

Can't really fault the broker

I appreciate I did sign the paperwork but took the mortgage whilst on contract work and am struggling to pay now that the contract has finished and pay has dropped

I thought there may be an angle regarding high Sub-prime SVR or tie-ins but if thats not the case then fair enough, I will swerve the Claims Management Company

Cheers

FraudBuster

Claims companies are about as close as you can get to a legalised scam at present.

Agreed.

notveryhapi

_Andy_ wrote: »

So it wasn't mis-sold then. Next please!

No it probably wasn't

This does not stop a challenge to the mortgage company for a refund of fees/charges/overpaid interest as we have seen regarding bank charges/credit card charges and PPI

I do not want to make a complaint about the advice given as that would come back on the mortgage broker which I do not want to happen

I was more after information as to what sort of angle a claims management company would have on sub-prime mortgages

Thanks for all of your responses