Deutcshe Bank Mortgages HEELP!!!

TRANSPORTER

Hi People, I have been looking into the FSA report of fining DB mortgages over dodgy trading (for want of a better phrase). Anyway my partner now wife has a mortgage with them, at the time she was employed but due to an adverse credit report on my side (divorce) my wages were used but were said to be hers as a second job income. Anyway she got an interest only mortgage through a local broker because apparently this was the only mortgage option open to her. We were told that it was a credit repair mortgage and after the initial two years we would be eligible for a repayment mortgage, we are now into our third year, but we were never offered a different mortgage and are still on interest only due still to my credit score, even though a repayment is cheaper than what we are and have been paying we still dont seem able to get a high street lender to lend to us.

1.2. DBM will carry out a customer redress programme to redress the failings set out in this notice (as set out in more detail at paragraphs 2.9 to 2.11 below). The total estimated cost of redress for the period is approximately £1.5 million including interest in relation to refunds of fees and charges and the payment for customers to receive independent financial advice. In addition, there will be a customer contact exercise which may lead to further redress but the amount can not be quantified at this time.
Anyway we are looking into making a claim against them and after reading this part of the report would like some help of what to do next.
Mainly in regard to seeking independent financial advice, where DB will pay for the cost.
We had a look on the PP Claims site(one of these no win no fee companies) but after looking through their T&Cs and seeing that we would pay them 25% +VAT we decided to go it alone so to speak, does anyone know of any finacial people we should head towards in regard to a claim against DB mortgages, we live in the west country if that helps.
We dont know if we would be due anything but if you dont ask you dont get.
Any help would be great, cheers in advance.

kingstreet

If your partner declared your income as her second income because she knew this would not be verified, I would tread very carefully.

There is potential for a mortgage fraud charge if she made a false declaration.

It may well be the DB mortgage was the best option at the time. Without knowing all the circumstances, it's impossible to say. Many people who expected to be able to remortgage after two or three years have been unable to do so due to falls in property prices and lack of availability of appropriate credit.

I suggest you try to make capital payments to reduce what she owes so that you can remortgage in future and have yourself added to the transaction formally.

opinions4u

How can a repayment mortgage have a cheaper monthly payment than interest only?

TRANSPORTER

opinions4u wrote: »

How can a repayment mortgage have a cheaper monthly payment than interest only?

At the time Abbey National were quoting us £875 per month, but something rather strange happened after the Barratts home mortgage broker got involved when we moved home, 24hrs after he had started to look for us even though we insisted we had a mortgage in hand Abbey national withdrew the mortgage? It was at this time we had to go to a independent broker as we would of lost the house we were buying, the price we had to pay DB per month was £1017 for a solid two years.

TRANSPORTER

kingstreet wrote: »

If your partner declared your income as her second income because she knew this would not be verified, I would tread very carefully.

There is potential for a mortgage fraud charge if she made a false declaration.

It may well be the DB mortgage was the best option at the time. Without knowing all the circumstances, it's impossible to say. Many people who expected to be able to remortgage after two or three years have been unable to do so due to falls in property prices and lack of availability of appropriate credit.

I suggest you try to make capital payments to reduce what she owes so that you can remortgage in future and have yourself added to the transaction formally.

My partner didnt, it was only after we got the mortgage in place we found out the broker had done this with my income, looking back i think we can remember the paper work saying the broker was getting a payment of around £10,000 for the mortgage so it makesyou wonder if were misold the mortgage due to our desperation for the mortgage at the time, you all know whats its like when you want the house of your dreams etc etc

opinions4u

TRANSPORTER wrote: »

At the time Abbey National were quoting us £875 per month, but something rather strange happened after the Barratts home mortgage broker got involved when we moved home, 24hrs after he had started to look for us even though we insisted we had a mortgage in hand Abbey national withdrew the mortgage? It was at this time we had to go to a independent broker as we would of lost the house we were buying, the price we had to pay DB per month was £1017 for a solid two years.

So for clarity, you're comparing a repayment mortgage with a different lender to an interest only mortgage with Deutsche Bank.

Apples and pears.

If they really were the only lender who would make funds available, you would expect to pay a premium interest rate for borrowing the funds. Unless the lender made some sort of clear written commitment to provide a cheaper rate further down the line, you are going to struggle to get them to change a rate to something that doesn't currently exist. If you're saying the broker promised something cheaper then your case is against the broker - but my view would be that he could only base his suggestion on market conditions as he knew them. He certainly wouldn't be the only one who failed to predict the Credit Crunch.

Thrugelmir

TRANSPORTER wrote: »

My partner didnt, it was only after we got the mortgage in place we found out the broker had done this with my income,

Your partner would have read and signed the application form to confirm the details were correct. So undermines your case somewhat.

Have you enquired with DBM to see if any other mortgage options are available? At the very least you should start making capital repayments to reduce the balanced owed.

kingstreet

TRANSPORTER wrote: »

My partner didnt, it was only after we got the mortgage in place we found out the broker had done this with my income, looking back i think we can remember the paper work saying the broker was getting a payment of around £10,000 for the mortgage so it makesyou wonder if were misold the mortgage due to our desperation for the mortgage at the time, you all know whats its like when you want the house of your dreams etc etc

£10,000? :eek:

I've just looked back at my procuration fee scale for March 2007 and DB is quoted as paying 2.5% as a total including the packaging fee, with the introducing intermediary receiving half of that. The total payment of £10,000 on a mortgage of £400,000 would therefore result in a payment of £5,000 to the broker.

At the same time, lenders like Kensington, GMAC, Platform, Future etc were paying 1% to 1.2% to the intermediary, so there's little incentive for product or lender bias. The only route of complaint would be one where the broker placed the mortgage with a subprime lender to get a fee of 1.25% when he could have placed the case on the high street but he would have only got 0.3% in doing so. You appear to indicate in your opening post high street lenders were, and still are, closed to you, so I'm not sure you have much of a case.

If you received advice at the time, you should have received a suitability letter explaining why the DB product was the best for you at that time. Read it and see if it agrees with your circumstances at the time. If you feel it doesn't, post back with your concerns.