Mis sold Mortgage

d0nk

Hi

Is this new Mis sold Mortgage new and are they trust worthy, can anyone recommend a good company.

kingstreet

Organisations who handle mis-selling claims are not particularly well regarded. This is because if you have a genuine claim, you can take advice on here and put your complaint directly to the adviser/lender and ultimately to the Financial Ombudsman Service (FoS) if the answer to your complaint isn't acceptable to you.

I suggest you set out your situation and your concerns and let us see what we think.

It is very difficult to justify a mortgage mis-selling claim because of the amount of time and detail used by most advisers to justify their recommendations. Supporting paperwork is usually strong on these issues too.

opinions4u

Don't use a claims company. Never pay any of these firms a penny up front - you'll never see the money again.

Post on here why you think you've been mis-sold to and you'll get good direction as to whether or not it is a mis-sale and what, if anything, you should do about it.

ILW

In waht way are they saying the mortgage was ms sold?

dunstonh

Claims companies are telling out sorts of porkies to get you to put a complaint in. Especially those with an up front charge or where they "introduce" a charge mid way through the claim to take it further (usually after saying you have a case, even when you dont, but making it sound more likely that you will pay).

In the scheme things, only a tiny fraction of people have an actual mis-sold mortgage. Hardly any get any redress. Often where mis-sales have taken place, the borrower is complicit in the fraud and could end up shooting themselves in the foot by getting recorded as making a fraudulent application.

magpiecottage

dunstonh wrote: »

In the scheme things, only a tiny fraction of people have an actual mis-sold mortgage. Hardly any get any redress.

It is theoretically possible to end up with an interest-only mortgage when you should not have had one. However, in the first few years you would hardly have paid anything off anyway.

Lenders are also required, under FSA rules, to make very clear that it is interest only and that the borrower must make provision to repay it and remind borrowers at least once a year.

Therefore, in the only case of this type I have encountered, it was simply timebarred by the intermediary and the Financial Ombudsman Service accepted the timebar.

dunstonh wrote: »

Often where mis-sales have taken place, the borrower is complicit in the fraud and could end up shooting themselves in the foot by getting recorded as making a fraudulent application.

Claiming your salary large than it really is constitutes fraud. It is possible that a broker might be complicit in that, or that they might have failed to act with proper diligence but in the end, the borrower cannot lodge a complaint without admitting they signed an application which contained fraudulent information.

That could lead to prosecution!

Wh05apk

ILW wrote: »

In waht way are they saying the mortgage was ms sold?

This is the big question! I suspect they are fishing, saying you have been mis-sold, without even knowing you have a mortgage, I am constantly getting texts/emails from these companies saying I have been mis-sold PPI (I have never taken PPI!) and also saying I could claim compensation for an injury accident (which I have never had)

If you feel you have been mis-sold, complain/ ask on here, don't waste your time with these companies.

AngelaD63

I am very interested in mis sold mortgages.I bought a council house with my father way back in the 1980's,I was very young,he was 68 and a pensioner,my wage on its own would not have been enough to obtain a morgage(think I earned about £4,000 and companies were only lending 2 and half times your salary) so Alliance and Leicester took into consideration my Fathers pension and we got a morgage over 25 years which would have taken him into his 90's,I got an endowment(which I am trying to make a mis selling claim on but Prudential are not being very helpful) we asked for it to be in both names and we ticked the box for a joint application but did not fill out other details my father died about 3 year later and I was not covered on my endowment (but I did not realise this until then)so does anyone know if I am entitled to compensation on a mortgage which I think(due to my fathers age and my low earnings)I was mis sold
Any help appreciated

opinions4u

AngelaD63 wrote: »

I am very interested in mis sold mortgages.I bought a council house with my father way back in the 1980's,I was very young,he was 68 and a pensioner,my wage on its own would not have been enough to obtain a morgage(think I earned about £4,000 and companies were only lending 2 and half times your salary) so Alliance and Leicester took into consideration my Fathers pension and we got a morgage over 25 years which would have taken him into his 90's,I got an endowment(which I am trying to make a mis selling claim on but Prudential are not being very helpful) we asked for it to be in both names and we ticked the box for a joint application but did not fill out other details my father died about 3 year later and I was not covered on my endowment (but I did not realise this until then)so does anyone know if I am entitled to compensation on a mortgage which I think(due to my fathers age and my low earnings)I was mis sold
Any help appreciated

There was no mortgage regulation back then so it was entirely up to the borrowers (you and Dad) to determine whether or not the mortgage was right.

As for the endowment, the sale of that wouldn't have been regulated until 1988. But it would, in many cases, have been reasonable not to insure a 68 year old as the premiums would have been massive.

In my view you won't be entitled to any compensation and it isn't worth the effort in pursuing it.

Out of interest, how much did you pay for the property and what's it now worth?

dunstonh

so does anyone know if I am entitled to compensation on a mortgage which I think(due to my fathers age and my low earnings)I was mis sold

No.

Ignoring a 15 year timebar that may apply and the fact its well before any real regulation, there is no indication of any mis-sale here.

1 - he couldnt be on the endowment because of his age. So, you cant have what you cant have.
2 - You and he didnt have to buy the property and take a mortgage. Plus, back then you had to use a solicitor for legal advice. So, you would have been warned of the risk issues and obviously chose to ignore them.
3 - You must be significantly financially better off because of this. So, how can you claim compensation for being better off?

AngelaD63

Thanks for advice
Actually I am not better off(well only on paper) we didnt know anything about house purchase,my wage was not enough to get a mortgage on on my own,so when Dad died I was left to pay for the whole mortgage and struggled to make ends meetstill live in property but now have young family and we were not told that we couldnt insure My Dad,as i mention we both ticked the box on the endowment for a joint policy it came backin my name,no one explained that he was too old,we used an agent of Scott Amicable(as it was then),do you think that Alliance and Leicester were irresponsible in lending the mortgage money? As I mention I was only very young and wish that I knew then what I know now! it did leave me virtually unable to live having to make all payments on mortgage and have had to remortgage several times because of it
Thanks for your help and any further advice