Pensioner Missold Mortgage

70mortgage

I think I have been missold a 25 year repayment mortgage fixed for 5 years by the Halifax I was 68 at the time in 2009. Now they say I can not transfer to an interest only mortgage (this would be much cheaper for me). I feel I should have been sold an interest only Mortgage in the first place. So I am now trapped in my present house for the rest of my life with high payments.
Any advice anyone ...... Thanks

cattie

Interest only mortgages are not something that lenders are keen to offer these days, because of all the problems that occured when the scandal of missold policies attached to interest only mortgages occurred and worries about where the mortgagee will find the money to pay off the capital part of the mortgage.

To be honest, if a bank had sold you an interest only mortgage at your age, I would have considered that miss-selling as you were far too old to be able to make satisfactory arrangements to repay the capital part of the loan.

You are not necessarily trapped in your house for the rest of your life, once your fixed deal is up & you are out of the penalty phase, you can shop around for another deal or put your house up for sale and perhaps buy somewhere cheaper.

One assumes when you were 68 you had an income that was considered enough to support the mortgage you were granted?

opinions4u

Why do you want a debt that will never be repaid?

ILW

opinions4u wrote: »

Why do you want a debt that will never be repaid?

Doubt if will care at 93.

hermanmunster_3

An IO mortgage is effectively renting the property off the bank

opinions4u

ILW wrote: »

Doubt if will care at 93.

Very possibly not.

But if the op wants to pursue a complaint there needs to be more to it than simply A is cheaper than B when it comes to monthly payment.

Another issue that he will probably hit is that it's more than possible interest only without a repayment vehicle was never an option. You can't claim that you should have been sold something that was never available in the first place.

dunstonh

Now they say I can not transfer to an interest only mortgage (this would be much cheaper for me).

The FSA has told lenders that they should not consider the interest only option as a low cost option. So, the lender is doing what they have been told to do by the regulator.

I feel I should have been sold an interest only Mortgage in the first place. So I am now trapped in my present house for the rest of my life with high payments.

I would love to see the justification on that one. You are completely bucking the trend in your opinion.

betmunch

As it was by Halifax it was likely to be non-advised anyway wasnt it?

Assuming it is non-advised then surely the client is responsible for picking his own mortgage?

Did you ask for it to be interest only?

Did you say you couldnt afford the payments as repayment?

Totally agree the Interest Only option might not have been available back then, highly likely theres no repayment plan. Cant see this going anywhere if a formal complaint is raised

The_J

Please complain.

Please post response to complaint here.

Will be hilarious.

TadleyBaggie

Strange, (in another thread) the OP claims to have paid off their mortgage in 2008. Have to wonder why they needed to take out a new mortgage at such an age.