Help my old mum with mortgage

cypher359

Hello Everyone, New to this forum but I need to get straight to it as time is the essence.
My mum has been really struggling financialy
She was sold a mortgage some years ago which asks for payments after retirement age (80 yrs old)
It was sold with PPI and through a broker I believe. She was told her 'insurance' would pay her mortgage off when she retired.

Was it mis sold??

trying to go through a box of paperwork to try and keep her in her home.....not yet that mortgage savvy
HELP:o

holly_hobby

Reading between the lines "insurance will pay the mge off when she retired", I am suspecting this is an endowment/interest only mge.


A mge going into retirement, is not an out and out mis-sale , if the client had met affordability checks, understood the implications of the mge going to retirement, and could not have realistically afforded a shorter mge term - than the term of the mge is not a mis-sale.

Not being sure what the mge repayment method is, I can't really give any info on that side - assuming endowment - did she or has she received projection letters, what did they say, and has she complained if she felt the workings of the product wasnt explained to her. I should also point out that the opportunity to complain re any endowment mis sale may have now been lost (time barring).

I would like to say that I have given general thoughts here, as the info given in the initial post is a little too vague - but I have tried to decifer what you mean & give general advice on that basis.

Hope this helps

Holly

cypher359

Thanks for the reply so soon!
I am still trying to unpick what has been going on myself, but I have discovered that the job title on the application is a teacher ( she is a dinner lady come child supervisor) and from what information I can get from her she says she was advised that that should go on the form to help her application?
She is on Meds for depression and pain so she is a bit forgetful.

cypher359

I will try to collect more facts to help.

opinions4u

By agreeing to lie on the application form she has made herself a party to mortgage fraud.

Approach this very carefully.

cypher359

I understand what you are saying oppinions4u, but I dont think she was really aware of the gravity of the situation and what she was being asked at the time and when someone as in her eyes is seen as a figure of authority it is understandable that she followed the advice given when the salesman completed the form. However, I wasnt there. If I was perhaps this wouldnt have happened.

GMS

cypher359 wrote: »

I understand what you are saying oppinions4u, but I dont think she was really aware of the gravity of the situation and what she was being asked at the time and when someone as in her eyes is seen as a figure of authority it is understandable that she followed the advice given when the salesman completed the form. However, I wasnt there. If I was perhaps this wouldnt have happened.

Even if your mother was 'following advice', if she knew the information to be a lie then she is party to it. Saying I did what I was told would be a very weak defence akin to the 'If he told you to put your hand in the fire would you?' line we all had as children.

Several years ago there were lenders who would allow mortgages to continue to age 80 and beyond.

Do you have the paperwork from the adviser. Fact find, KFI, Suitability Letter?

The suitability letter should contain information as to why the product was recommended.

THe Fact find should have planned retirement age in it. If the term of the mortgage goes beyond this then there should be an explanation as to how this will be supported. May have stated something like pension income, or sale and downsize (assuming equity and plausibility)

You may be best arranging a chat with a broker to look through the paperwork with you. Difficult to say without knowing exactly what went on.

Be very wary of a complaint though. If your mother signed all of the paperwork she will find it difficult and potentially damaging if any information has been submitted to the lender when knowingly incorrect.

Out of curiosity which lender was it? Was it a self certification mortgage? If so could this be why she stated teacher rather than dinner lady, for income reasons?

cypher359

Thankyou GMS, I believe the mortgage was arranged through Natwest, I am going to do a paperwork trawl later today and should get a few more answers. Thanks for taking the time to reply.

This is becoming a real nightmare :eek: