Help, was my mothers mortgage mis sold and what do we do next?

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
7 replies 1.4K views
cypher359cypher359 Forumite
8 Posts
We live some distance from my mother and she took action to remortgage to add a conservatory onto a run of the mill ex council house without us knowing. this was some years ago and now she has found herself in a real muddle. She seems to have been able to get the mortgage based on a meagre wage and a now ended tax credit. She is about to lose the house as she cant afford the mortgage and to live , without the tax credit. The term of the mortgage ends when she is 74! She was sold it from a 'visiting' broker we think and she paid 1500 on top as ppi as part of the mortgage. the intrest is astronomical. As I said , we didnt know and I think it was due to misjudgement through antidepresants since she lost my father. Do we have a case and if so can anybody reccomend a good no win no fee company to use as we dont have the cash to help her?

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  • dunstonhdunstonh Forumite
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    he took action to remortgage to add a conservatory onto a run of the mill ex council house without us knowing.

    Did she remortgage or take out a further advance or was it new borrowing?
    Does she need your permission to make decision or is she mentally unable to make decisions of her own?
    The term of the mortgage ends when she is 74! She was sold it from a 'visiting' broker we think and she paid 1500 on top as ppi as part of the mortgage.

    If it is a mortgage and not a secured loan and it was a remortgage as you say, then how was she intending to pay the existing mortgage back?

    If it was a mortgage, then the broker has a responsibility to make sure the mortgage is affordable. If it was a secured loan then the applicant carries the responsibility as secured loans are rarely sold under an advice process.

    Single premium PPi on mortgages is an easy mis-sale to complain about. secure loan PPi is still fairly easy as well.
    Do we have a case and if so can anybody reccomend a good no win no fee company to use as we dont have the cash to help her?

    A claims company just increases the cost as they use the free-of-charge complaints process and use template letters that fit the easy cases. This is a lot more complicated. Your post indicates that there was already a debt in place and it was a mortgage. The broker wont be responsible for that unless the term was extended. Even then that could be justifiable if cost was an issue. However, an increased amount of borrowing would suggest that was not the case. Single premium PPi is a doddle to complain about. using a claims company for that is just wasteful. Two sentences is all it takes.

    For the moment, can you clarify some of the facts as the rules relating to mortgages, remortgages, further advances and secured loans are different.
    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.
  • Have you checked that she is receiving the correct benefits?
  • More information on this thread, it seems that the lady lied on her application.
  • dunstonhdunstonh Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    More information on this thread, it seems that the lady lied on her application.


    Oh great. Another thread created when one already exists which contains more information. Thanks for wasting our time cypher359.
    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.
  • Apologies, as I have not asked for help often, I didn’t realise the older post was still live and I was seeking further advice. "Lied" implies an informed and devious decision to avoid the truth and believe me when I say this does not apply to my mother. I believe from conversations with her that she was told when the application was being written that 'teaching assistant' was the best fit from a drop down menu for her. Yes I said teaching assistant as now more of the facts have been established. As you may have noticed on THIS thread I didn’t mention the ‘implied lying’ situation as this was not actually related to her mortgage as I discovered since but to an earlier loan. Originally her mortgage was with Natwest and seems perfectly fine ( small amount of 31000) had an insurance policy to cover payment into retirement. Subsequently I have discovered the later (as fresh borrowing) mortgage with Kensington, (TML and Money Partners involved as brokers of some kind) is almost double the amount mostly due from what I can see from a high rate of interest added on top.
    Dunstonh...she doesn’t need my permission to make decisions but I have tried to make it clear that she was not and is not fully able to make informed financial decisions beneficial to herself, like many others. This website is a testament to the fact that there are many others in similar situations and I congratulate and applaud those who are able to give time and knowledge freely to help people put their financial lives back on track.
    “If it is a mortgage and not a secured loan and it was a remortgage as you say, then how was she intending to pay the existing mortgage back?” I think she thought she was still covered by insurance but as she lost money back to the government (working tax credit) she found it harder and harder to keep up. She worked hard for the 21 hours or whatever needed with failing health and the legislation changed for the ‘top up’ she needed to pay her mortgage and survive. Unfortunately I can’t pay her mortgage for her but help her with food and gas payments when I can.
    “Single premium PPi is a doddle to complain about. using a claims company for that is just wasteful. Two sentences is all it takes.” Which sentences?
    “Have you checked that she is receiving the correct benefits?” – she gets single occupier council tax allowance but since she is trying to keep her job rather than give up and sign on, like many others she sits in the trap: not enough money to manage, not poor enough for the state to care, not well enough to work full time and not ill enough to fit the new disability regime- not that she would want that. However £60 per month on prescriptions for arthritis to depression gives you an idea.
    No intention to politically offend here, just looking for help.
  • dancingfairydancingfairy Forumite
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    I hope she's not actually paying that much in prescriptions per month :eek::eek: She needs to get a season ticket and you can even pay monthly as well. http://www.nhsbsa.nhs.uk/1127.aspx

    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • Thank you dancing fairy for the help. We do now do this for her.
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