Help - where can I read up to check if I have been miss sold a mortgage

Bad_Dad_2

I signed up to a 5 year mortgage just as the economy went into meltdown. I was in a selling chain of selling my home and buying a new one. I ended up in my life long bank and signing up to a hellish mortgage with extorionate interest. Bottom line was if I didnt sign up to this product I was going to lose out as it was being withdrawn any day. In hind sight there was a lot of hard sell scare tactics and no time to think things over. If I didnt sign then and there I was going to lose out and not get a product which I could afford given my circumstances. I also then had to take out compulsary building insurance with the bank to get the mortgage even though I had it with another provider. I have lost all faith in my bank after successful complaints in relation to bank chanrges and PPI. My gut feeling is that my mortgage process was undermined by poor sales practice and scaring me into signing for a product I need advice but ot from my bank who are not helpful at any time in relation to complaints.

somethingcorporate

What is your rate?

A lot of people ended up on high fixed rates just before the rates fell (which no-one, least of all banks) could have predicted.

I know you said they "scared" you in to it but you signed up for the product, no one forced you to put your squiggle on the contract so I find it very unlikely that you will get anywhere with this.

opinions4u

Your complaint is that your bank sold you five years of stability just as the economy hit uncertain times?

What should they have done?

Annisele

It's pretty hard to mis-sell a mortgage - not impossible, but pretty hard.

The problem with PPI is that millions of consumers ended up with something they didn't need and couldn't use. Mortgages are different - you wanted to borrow the money and the bank lent you the money.

It's also possible that the pressure wasn't unreasonable. If the product really was likely to be withdrawn soon, then you'd have to sign up quickly if you wanted to ensure that you had the product.

I also think it's unlikely you'll get anywhere with this, but if you could give us more details about the product you've actually got and why you now think it's wrong for you we might be able to say more.

ACG

Can you prove the scare tactics?
Your bank may well have pulled that rate in a few days time (maybe to change to a better or worse product).

Your bank can only recommend their own products so they can only offer you a limited range. Nobody knew the recession was coming so you cant blame them for that.

If their buildings insurance was a compulsary part of the mortgage then it was a compulsary part of the mortgage - you were free to go elsewhere.

Its nobodys fault you were in a chain, if you had a deadline and they were the only people that could meet it - then that was what was most important to you at that time.

Bad_Dad_2

somethingcorporate wrote: »

What is your rate?

A lot of people ended up on high fixed rates just before the rates fell (which no-one, least of all banks) could have predicted.

I know you said they "scared" you in to it but you signed up for the product, no one forced you to put your squiggle on the contract so I find it very unlikely that you will get anywhere with this.

The rate is 6.98% which in not I understand huge but it fells like it comming out of my wage. No I wasnt forced to sign but the implied implication of not signing was I wouldnt get another product.

holly_hobby

You would need to prove that the terms of the mortgage (upon which you made you decision to enter into the contractual arrangement) were mis-represented, or the mortgage was completely unsuitable to your circs i.e you were sold an adverse credit mortgage (and high than high st rate) when you had a good clean credit record and had a choice of main stream lenders - it is such circs that would go to indicate the possible miss-selling of a mge.

If you passed the uw, you would have had the choice of products suitable to your LTV, suggesting that the lender advised that you would not obtain any other mortgage (regardless of rate) if you didn't take this particular product with them, sounds un-realistic BUT I don't doubt that your recollections may suggest this.

Blds insurance is a complusory element to all mortgages, albeit it is not compulsory that you have to buy the lenders - unless of course this stipulation forms part of the product terms and contractual arrangement that you were advised of, and agreed to enter into (as evidenced by your signature).

There are other issues that I won't go into at the moment, because from the face of it, there is no evidence of mis-selling, just unfortunate timing re subsequent rate changes - however more details may change this evaluation.

Sorry if not what you hoped to hear ...

Hope this helps anyhow ...

Holly

Bad_Dad_2

ACG wrote: »

Can you prove the scare tactics?
Your bank may well have pulled that rate in a few days time (maybe to change to a better or worse product).

Your bank can only recommend their own products so they can only offer you a limited range. Nobody knew the recession was coming so you cant blame them for that.

If their buildings insurance was a compulsary part of the mortgage then it was a compulsary part of the mortgage - you were free to go elsewhere.

Its nobodys fault you were in a chain, if you had a deadline and they were the only people that could meet it - then that was what was most important to you at that time.

I have read through all my documents in relation to my mortgage and buildings insurance and there is no mention of the buildings insurance being compulsary at all for this mortgage. I was on a 5.?% capped variable rate for my selling house and ended up with 6.9% fixed rate for 5 years with my new house. I have never had a fixed rate or had a deal for so long before as I always hop around for the best deal. I do feel pushed into this product with heavy exit fees which locks me into it.

ACG

Have a look at your paperwork - it should say whether it was an advised or non advised sale.

A lot of banks do non advised sales - ie they tell you the difference between their products and you decide, if this is the case you have no come back at all really other than your not happy with their sales process (hard sales) but you cant really prove this one way or the other.

holly_hobby

Blds insurance is always compulsory for a mortgaged property - as it is protecting the asset upon which lender has suriety.

If you already had a mortgage wasn't this portable ?

why did you choose a new mge provider other than your exisiting one ?

This will help build a picture

H

Bad_Dad_2

holly_hobby wrote: »

You would need to prove that the terms of the mortgage (upon which you made you decision to enter into the contractual arrangement) were mis-represented, or the mortgage was completely unsuitable to your circs i.e you were sold an adverse credit mortgage (and high than high st rate) when you had a good clean credit record and had a choice of main stream lenders - it is such circs that would go to indicate the possible miss-selling of a mge.

If you passed the uw, you would have had the choice of products suitable to your LTV, suggesting that the lender advised that you would not obtain any other mortgage (regardless of rate) if you didn't take this particular product with them, sounds un-realistic BUT I don't doubt that your recollections may suggest this.

Blds insurance is a complusory element to all mortgages, albeit it is not compulsory that you have to buy the lenders - unless of course this stipulation forms part of the product terms and contractual arrangement that you were advised of, and agreed to enter into (as evidenced by your signature).

There are other issues that I won't go into at the moment, because from the face of it, there is no evidence of mis-selling, just unfortunate timing re subsequent rate changes - however more details may change this evaluation.

Sorry if not what you hoped to hear ...

Hope this helps anyhow ...

Holly

Hi Holly, there is nothing in my mortgage docs or buildings ins docs that link the two togther and stipulate i needed BI to get the mortgage. I already had it from someone else.