Mis-sold unregulated mortgage

opti_miser

I'd really appreciate some advice on a mis-sold unregulated mortgage.
It was sold to us by a broker (whose parent company has since gone bust) as a variable rate agreement but it turned out to be fixed - at a high rate. We took it out in 2008 when rates were still quite high anyway so didn't suspect anything until rates started falling and our repayments didn't.
I have complained to the lender who told us it was the broker's fault, and to the Ombudsman who said they couldn't intervene because it was an unregulated agreement.
We took it out with a broker who was well known to us - he brought the agreement to the house for us to sign and it wasn't possible to read it before signing - although I did specifically ask if it was variable rate which he confirmed, and when I later queried (by email) why our payments weren't reducing he blamed Libor reducing slower than the BoE rate.
We have since settled it and taken out a new loan with Lloyds TSB - but the whole debacle cost us £10K+. Do we have no recourse at all?
Thanks for any advice you can offer!

haras_nosirrah

Did you get through a mortgage offer at the time?

dunstonh

I'd really appreciate some advice on a mis-sold unregulated mortgage.

Being unregulated means it does not have the same rules as regulated (or the same level of consumer protection as it is unregulated). So, mis-sale has to be harder to achieve.

Do we have no recourse at all?

No

You have the key features illustration and contract giving you the amounts and terms. You signed these to agree to them. It is an unregulated mortgage so doesnt get protection from the usual channels.

The only option is court but if the company dont exist any more then there is no entity to take to court. Plus, you case is very weak and you would probably be viewed as someone with buyer remorse rather than misrepresentation unless you have some proof to back up what you have said. (e.g. you were not mis-sold but wished with hindsight you were on variable and are now looking for compo. Not saying you are but without evidence, that is the argument you would have to counter. Especially when you consider that people didnt generally buy variable rates until after the base rate dropped. Yet you say you wanted one. The balance of probability isnt really in your favour).

Imancarlo

We bought via a mortgage broker who has since left company. Our property is on negative equity/or thereabouts. Our mortgage was sold/passed on from one company to the next - we are on third one called Basinghall Finance. But they say their rates are not linked/determined by the BoE rates and so the SVR is still very high. We are stuck as we cannot remortgage with anyone else - or am I wrong could there be a solution out there?

_Andy_

Imancarlo wrote: »

We bought via a mortgage broker who has since left company. Our property is on negative equity/or thereabouts. Our mortgage was sold/passed on from one company to the next - we are on third one called Basinghall Finance. But they say their rates are not linked/determined by the BoE rates and so the SVR is still very high. We are stuck as we cannot remortgage with anyone else - or am I wrong could there be a solution out there?

Please start a new thread, this has no relevance (aside from being about a mortgage) to the thread you have posted on.

opti_miser

Thanks for the comments folks - and yes, I agree that it looks unlikely I'll get anywhere.
I specifically wanted a variable rate because the base rate was high and I didn't see it staying there long-term - I took out a residential mortgage in 2006 on a variable rate for exactly the same reason - so I guess I could at least demonstrate that I have 'previous' for variables rather than fixed!
No documentation was supplied in advance of the meeting to sign the loan agreement - so no written offer beforehand - everything was verbal.
I can show email correspondence that demonstrates me checking why the rate hadn't changed - and the broker providing excuses - it was only when I contacted the lender direct that I got a straight answer - and when I went back to the broker he clammed up and hasn't spoken to me since.
However, I recognise that this is a lost cause so I'll put it down to experience. Be warned Moneysavers - dont allow yourelves to get too close to your IFAs - I regarded mine as a friend and took what he told me on trust. That little error of judgement cost me £10K+, and I now have no confidence in any of them - which is proably going to cost me even more long-term!
Gripe over - thanks for trying to help answer my query.

holly_hobby

To be fair this (if accurate) says more about your friend that IFAs as a whole ....

As an unregulated agreement, you would be looking to prove in court that the terms you entered into were misrepresented by the lender, not the broker, as he was not providing the finance but merely acting as an introducer to the lender.

Holly

dunstonh

Be warned Moneysavers - dont allow yourelves to get too close to your IFAs - I regarded mine as a friend and took what he told me on trust.

Most IFAs dont get involved with mortgages. Typically it is left to mortgage advisers (either independent ones or whole of market). However, given that IFAs are the largest distribution channel of regulated financial products yet only account for 1% of complaints at the FOS, then things are not that bad. You cant account for the odd bad apple in any trade.

I now have no confidence in any of them - which is proably going to cost me even more long-term!

That isnt fair. I have come across the odd bad teacher. The odd bad doctor, plumber, accountant, solicitor, builder (etc etc). So, on your reasoning they are all bad.