diamond lifestyle/prefered/capstone missold mortgage?

murphy79

Hello
First of all,thanks for reading this post...

I had a mortgage via diamond lifestyle in about 2005,myself and my grandmother bought the house via the right to buy scheme,but we couldnt get a "decent mortgage" as i didnt live in the house with her and the fact she was over 60 at the time probably went towards the sub prime route....

When we got the mortgage,they charged about £4500 arrangement fee,but at the time it was the only way i could buy the house,so the £4500 for a 60% cheaper house was the way forward......"at the time">...

Now I am reading that maybe i was missold the mortgage,or at least over charged in respect to the arrangement....
At first the mortgage rate was around 5%,but after about 3 or so years,it went upto 11%....

I was contacted by a company named ABC,they are a claims management company.....
When i reeled off the different credit cards and loans id had,the Lady who came round seemed interested-ish......
When i mentioned the Diamond lifestyle mortgage,her face lit up,now i am pretty good at reading peoples facial expressions,she had "Pay day" written all across her face...
So as the weeks went by i thought id stall the claim to see how they pursued me,they phone every day about 3-5 times,and have done for weeks on end.....
The only reason i havent pursued it is i am told by them that they want 25% comish for doing so....
Now i dont mind them taking 25% of £1000 for a credit card....
But if for example the £4500 is what i can get back (maybe more) i have a bit of an issue with handing over £1000s.....

When i came to switch mortgages,to a prime company,my solicitor advised me that he thought it was missold,and that i could quite possibly stop paying the mortgage and they wouldnt legally be able to pursue me.....
But at the time i just wanted to get it sorted with as little stress as possible...
My Grandmother sadly passed away in 2008,and it was a difficult time to get everything done....:(

Has anyone here had a mortgage with Diamond lifestyle etc?.,..
If so can anyone advise me to how they went about claiming..
Also,could you send me in the direction of either a free claim company,or possibly a pdf or guide to getting the claim up and running....
Thanks for reading this long drawn out post and also thanks for any help any of you can give....

roonaldo

Sounds like they are having you on, they will tell you anything is mis-sold, all the they do is send a complaint letter in the hope of a payout. Certainly DONT stop paying the mortgage too. thats really poor advice for a solicitor to say that.

It doesnt sound mis-sold on the basis an over 60 was on the mortgage and you paid an arrangement fee, nothing wrong with that.

Did either of you have any bad credit? Who was the sub-prime lender?

dunstonh

I have been told by claims companies that I have been mis-sold and can get compensation and I am an IFA. One even knew i was an IFA and told me that I could still claim compensation from myself.

The FSA does not state what fees are reasonable or unreasonable. £4500 is very high but if you knew it was £4500 in advance and it was on the documentation you signed then so be it. No different to getting three builders give you quotes for a job. One £10, one 20k and the other 30k. If you pick the £30k builder then you cant claim the cost difference back later.

This does not mean you were not mis-sold but you have to remember that there is compensation industry out there that earns commissions from putting complaints in. Many of these are now being investigated by the ministry of justice. In the last week you have had the banks saying that between 1/rd and a half of the complaints on PPI (for example) are fraudulent and most come from claims companies.

magpiecottage

dunstonh wrote: »

In the last week you have had the banks saying that between 1/rd and a half of the complaints on PPI (for example) are fraudulent and most come from claims companies.

I dealt with a fraudulent complaint from a police officer last month.

dunstonh

magpiecottage wrote: »

I dealt with a fraudulent complaint from a police officer last month.

An IFA posted on an IFA site that he had a complaint from a policeman asking if he had been mis-sold. He hadnt been recommended the product. The IFA then got a followup complaining that he hasnt been sold PPI.