Mis-sold Mortgage?

moneyfly

Thank you, but if you'll note in the opening post: "I fully understand that it is my responsibility and ultimately my fault that this happened, but I just want a little advice if possible."

Advice, not an easy way out is what I'm looking for. I just read everywhere about "mis-sold mortgages".

dunstonh

I just read everywhere about "mis-sold mortgages".

Mis-sold mortgages are actually a tiny minority of cases and in most of them the borrower was complicit in the mortgage fraud. So, you have to be wary of complaining if you committed fraud in the application.

It sounds like in your case that no mis-sale took place but some change of circumstances has occurred.

magpiecottage

The problem here is not the mortgage, it is the price you paid for the property. I am afraid the principle of caveat emptor (buyer beware) applies.

There is a (very) slight possibility that the property was overvalued and you, or the lender, have a claim against the surveyor if (s)he overvalued it but other than that, I think you are going to have to sit tight and wait for things to improve.

Coming to an arrangement with the lender will trash your credit record, you have no guarantee that renting will be cheaper in the long run and you will never own so much as a brick.

neverdespairgirl

Try the Debt-free Wannabe board here at MSE for ideas about saving money here and there, it's a good board.

Bossi

Hi All,
I am new to the forum, but have been a fan of the site and forums for some time. Would just like anyone's opinion on my feeling that I had a big mis-sell situation with my mortgage. In 2004 my husband and myself started a business and the following year decided to move house. We had 1 yrs accounts and very little experience on how our income was shown ie took basic salary and the rest shown as dividends. I spoke to an LTSB Mortgage advisor about my dilemma, as using the old method of showing tax returns/pay-slips etc it seemed on paper we only earned a basic wage. I was reassured by her that it was not a problem, she used to be a business advisor also, so just bring along the accounts. I think the one thing that sticks in my mind about the meeting was when she circled the 'sales' figure on my accounts and said "all you need to remember is to make sure you earn that much each year"! Like a very naive fool (I know ignorance is no defence) I took her to her word and signed up for a huge mortgage. I think it took about 18mnths to 2yrs to realise our mistake, as we were raiding the business of all its reserves just to keep up with the house. Couldn't get out as the recession was deepening, and consequently the business failed. I since switched to interest only, cant see us keeping the house in the long term, but really feel this was irresponsible advice. Any opinions?

holly_hobby

Hi Bossi ...

You will receive guidance - but suggest you initial start own thread so that you get more notice.

Once you're up and running, I'll pop in .

Holly

DannyboyMidlands

You got carried away with the hype of the boom and paid too much for your property. You admit that it was £15k over-priced at the time and you didn't care because you wanted to move out of your parents place. Maybe you could sue yourself?

GMS

Bossi wrote: »

Hi All,
I am new to the forum, but have been a fan of the site and forums for some time. Would just like anyone's opinion on my feeling that I had a big mis-sell situation with my mortgage. In 2004 my husband and myself started a business and the following year decided to move house. We had 1 yrs accounts and very little experience on how our income was shown ie took basic salary and the rest shown as dividends. I spoke to an LTSB Mortgage advisor about my dilemma, as using the old method of showing tax returns/pay-slips etc it seemed on paper we only earned a basic wage. I was reassured by her that it was not a problem, she used to be a business advisor also, so just bring along the accounts. I think the one thing that sticks in my mind about the meeting was when she circled the 'sales' figure on my accounts and said "all you need to remember is to make sure you earn that much each year"! Like a very naive fool (I know ignorance is no defence) I took her to her word and signed up for a huge mortgage. I think it took about 18mnths to 2yrs to realise our mistake, as we were raiding the business of all its reserves just to keep up with the house. Couldn't get out as the recession was deepening, and consequently the business failed. I since switched to interest only, cant see us keeping the house in the long term, but really feel this was irresponsible advice. Any opinions?

You have had several opinions on your duplicate thread

https://forums.moneysavingexpert.com/discussion/3587667

Conrad

Bossi wrote: »

she said "all you need to remember is to make sure you earn that much each year"! Like a very naive fool (I know ignorance is no defence) I took her to her word and signed up for a huge mortgage. I think it took about 18mnths to 2yrs to realise our mistake, as we were raiding the business of all its reserves just to keep up with the house.

You own a business.

You as a business owner would know how much income you would safely generate for yourselves.

You decided on a large mortgage.

You then found your business income was less than you required.

You think someone else is to blame?

You might be able to get compensation, but you don't really deserve any, but anyway here goes:


OK IN TERMS OF MAKING A CLAIM;

1) Write to the compliance department - use brief bullet points like this

1. We believe affordability was not APPROPRIATELY AND ROBUSTLY checked
2. The Bank felt the product was appropriately marketed and sold to us even though we had minimal self employment experience and 1 years track record
3. As such we do not feal fair treatment was central to the corporate culture that we experienced
4. The product was not targeted in line with TCF outcome 2
5. Service outcome was not in line with the provisions of outcome 5 - otherwise clear affordability would have been part of the service provision

In accordance with outcome 6, you must now not impose post sale barriers and as such must explore my complaint in a fullsome and objective manner