Complaint letter for Missold Mortgage

daisy-duke_2

Does anybody know if there is any kind of template claim letter for just a missold mortgage? All I can seem to find is missold endowment mortgage templates, I am trying to put in a claim for my parents who have been missold a mortgage on so many levels. I have contacted the Ombudsman today who have advised that firstly I write a letter to the company stating all the details of the complaint and what I am hoping to receive from the outcome, If the company doesn't reply in 8 weeks to call them back!
I have never done anything like this before so don't know where to start or what to try and get back for my parents?

Any help or advice will be appreciated

Thanks

_Andy_

hi

Yes you (well your parents) need to set out what has happened, why they're not happy with it and specifically what they want done about it.

In what way was it mis-sold?

erdd2

Can you elaborate on why you think the mortgage was missold, sorry to answer with a question but this will be relevant to your raising a complaint

erdd2

_Andy_ wrote: »

hi

Yes you (well your parents) need to set out what has happened, why they're not happy with it and specifically what they want done about it.

In what way was it mis-sold?

Too fast for me there Andy

daisy-duke_2

They arranged a mortgage with this broker in 2002 for £50,000 over 23 years, he sold them a ppi covering them for £50,000 over
15 years!
In 2003 my parents contacted him for advice about a consolidation loan for their credit cards, he then found them this "great deal" that would give them 15,000 with no extra monthly payments on their mortgage, all they had to do is move their mortgage over to another company. Which they did because they trusted him. He then took out another policy for £15,000 ppi to cover the extra they took on mortgage, turns out the ppi is 1st death only life insurance, no unemployment cover!
The first policy taken out in 2002 which they were told would cover them both for unemployment, sickness, death the lot! infact in his words "if anything happens to either of you, you will both be covered, the mortgage will be paid off and you will have a couple of grand left over" Turns out its a decreasing policy, they are paying £90 a month for it and if 1 of them died this year it would pay out £27,000 - they have a mortgage of £49,000! This policy runs out in the may 2016 and the mortgage runs until 2028 by this time both my parents will be past their retirement age! my mum was told she would be covered for sickness, she isn't! she is out of work due to Osteoarthritis and my self employed taxi driver father is struggling to keep up with all the payments.
Hope this makes sense ?

Thanks

dunstonh

They arranged a mortgage with this broker in 2002 for £50,000 over 23 years, he sold them a ppi covering them for £50,000 over
15 years!

Mortgages were not regulated until 2004.

PPI does not cover a lump sum payment like that. So, it cant be PPI.

He then took out another policy for £15,000 ppi to cover the extra they took on mortgage, turns out the ppi is 1st death only life insurance, no unemployment cover!

So far so good. No problems with that advice and seems spot on.

Turns out its a decreasing policy, they are paying £90 a month for it and if 1 of them died this year it would pay out £27,000 - they have a mortgage of £49,000!

decreasing term assurance is the correct policy for a repayment mortgage. Are you forgetting to include both policies?

This policy runs out in the may 2016 and the mortgage runs until 2028 by this time both my parents will be past their retirement age!

That is probably why the life policy runs out earlier as it couldnt go past a certain age.

When your parents took out the mortgage and knew it would take them into retirement, why did they do that?

What did your parents do with the money from the original mortgage and the further advance?

At the moment I am struggling to see where the mis-sale is. There is some potential on mortgage going into retirement but that in itself can easily be covered by a broker with an additional risk warning in the report and a record of why its not being repaid over a shorter period.

_Andy_

So your complaint is around the insurances not the mortgage then. Regarding the retirement date issue, if they were concerned about this why did they agree a term taking them past it for the mortgage?

daisy-duke_2

They have never raised this issue, my mum mentioned on how much they were paying out each month for insurance that she is not covered for! when going through her policies i noticed these errors! The money was used to pay off credit cards but was advised to put for home improvements as they would have had a better chance at getting approved because the money was going into the house?? The £89 a month is on a mortgage protection joint policy which will pay £500 a month for my dad only and decreasing life cover for them both, this policy runs out in 2016. The £15,000 policy is a seperate company and seperate payment and that was taken out for 22 years. Unfortunatley they trusted the broker and they thought he was doing them a good deal.

dunstonh

The money was used to pay off credit cards but was advised to put for home improvements as they would have had a better chance at getting approved because the money was going into the house??

So your parents committed fraud? In which case you want to be very careful raising a complaint that admits they committed fraud.

Ignoring that though, the fact they were already in debt from money spent means that transferring it to a different debt did not increase the amount they owed. Mortgages are much cheaper than credit cards.

If the broker knowingly submitted an application that involved telling lies on the application then that is wrong. However, it doesnt help your parents in a complaint.

If the mortgage had not been done and your parents were now suffering monthly payments that were around 3-5 times more per month than the mortgage, would they be able to afford that?

roonaldo

nothing sounds wrong here. they took out a mortgage, consolidated some debts, took life insurance. but it was mis-sold. I dont understand what is wrong.

Annisele

daisy-duke wrote: »

The first policy taken out in 2002 which they were told would cover them both for unemployment, sickness, death the lot! infact in his words "if anything happens to either of you, you will both be covered, the mortgage will be paid off and you will have a couple of grand left over"

Euphemisms like that can cause a lot of confusion! If the adviser said the policy would pay out "if anything happens to either of you", then obviously it wouldn't pay out the first time something happened - things happen to me every day. I don't think it was fair for your parents to assume that "anything" meant unemployment, sickness and death; it was far more likely to have meant just death. In any case your parents would have received policy documents that would have specified the circumstances in which the policy would pay out.