Mis sold a Mortgage?

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
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jam_girljam_girl Forumite
2 Posts
Hi,

I have had a call from Charge Right who are a PPI claim type company. They have brought it to my attention that I may be entitled to a refund on my old mortgage as they feel the interest we paid at the time was too high and therefore had a hidden PPI charge in it?

Mortgage was taken out in 2006 on a 2 year fixed term and was £775 for 25 years, interest rates at the time was 4.75%. They told me that this would have meant we would have paid back nearly 90% of the value that we borrowed in interest which was wrong. We did not take out ppi, nor is it mentioned on the paperwork.

Do you think they are right or were they just trying to get me to give them money upfront to start an investigation?

Replies

  • dunstonhdunstonh Forumite
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    They have brought it to my attention that I may be entitled to a refund on my old mortgage as they feel the interest we paid at the time was too high and therefore had a hidden PPI charge in it?

    Thats a new one. There are no rules on how much interest should or should not be paid. Also, PPI cannot be hidden in it. It is either paid monthly by direct debit from your account (how it should be) or single premium and then added to the mortgage, increasing the amount being borrowed (so standing out like a sore thumb - that is actually bad and a reason for complaint. However, you cant hide it as the amount you borrow would be many thousands of pounds higher and you get policy docs, cancellation rights etc).
    They told me that this would have meant we would have paid back nearly 90% of the value that we borrowed in interest which was wrong.

    They are completely wrong.
    Do you think they are right or were they just trying to get me to give them money upfront to start an investigation?

    It would be wrong to comment on a specific company as we were not party to what your discussion was. However, there are some very dodgy claims companies out there who tell a bunch of lies to generate fraudulent complaints purely for the intention of getting an up front payment out of you.

    It is for you to decide if lies were told or not. If they were, then that tells you what you need to know.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ok thanks, they were rather keen on getting me to give them my debit card details to take a payment from me as an admin charge to start the investigation as I would be owed a significant amount of money.....but I thought if I would be owed that much, surely they would waive the admin charge and deduct it out of what they won back for me .

    payments of £775 at 25 years would have seen me repaying £232k which was an extortionate amount of money and there must have been a hidden ppi element in there....they sounded convincing though!
  • magpiecottagemagpiecottage
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    Based in Swansea - there seem to be quite a lot of scam claims chasers in that neck of the woods.
  • dunstonhdunstonh Forumite
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    payments of £775 at 25 years would have seen me repaying £232k which was an extortionate amount of money and there must have been a hidden ppi element in there....they sounded convincing though!

    Over 25 years you can end up paying back upto 3 times what you borrowed. That is quite normal and to be expected given the timescale and you also need to factor in inflation.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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