Mis Sold Mortgage and Life Insurance?

beckyw1988

My husband bought our house before we met in 2007 he used the estate agents financial advisor who was dreadful, she said that basically the only mortgage he could get was an interest only as he was self employed and only had 3 months books. But surely as he had been working full time for 3/4 years before that he could have used old payslips to? and had a letter from the person he worked self employed for stating that he earnt now less than a certain amount in a year.
This mortgage is shocking interest only was at just under 7% fixed for 3 yrs no way to get out without paying £7000 early redemption fee which he didnt realise until his first mortgage statement came through.
She also sold him life insurance with critical illness but he had asked for life insurance and another insurance or joint that covered him for earnings if he was injured.
Do we have a leg to stand on claiming against either company? Mortgage is with kensington and life insurance with Legal and General

dunstonh

he used the estate agents financial advisor who was dreadful,

Estate agent reps have a lousy reputation and should be avoided (other than those in small local independents)

she said that basically the only mortgage he could get was an interest only as he was self employed and only had 3 months books. But surely as he had been working full time for 3/4 years before that he could have used old payslips to?

His employment status at point of sale is what matters. Not what he did earlier in his life.

This mortgage is shocking interest only was at just under 7% fixed for 3 yrs no way to get out without paying £7000 early redemption fee which he didnt realise until his first mortgage statement came through.

How did he not notice it on the key features illustration that shows all charges. Or the product details provided by the broker. Or the contract he signs that shows it?

A rate just under 7% for fixed is not shocking. It is actually below the long term average rate. However, surely the deal has come to an end now?

Do we have a leg to stand on claiming against either company? Mortgage is with kensington and life insurance with Legal and General

On what basis would the complaint be? Nothing seems to have been done wrong based on what you have said so far.

magpiecottage

beckyw1988 wrote: »

My husband bought our house before we met in 2007 he used the estate agents financial advisor who was dreadful

How do you know that? If it was before you met your husband you cannot possibly have been a party to the discussions.

she said that basically the only mortgage he could get was an interest only as he was self employed and only had 3 months books.

I don't know about what might have been available but somebody who was newly self-employed would be severely restricted in what they could choose.

But surely as he had been working full time for 3/4 years before that he could have used old payslips to?

A lender wants to know that they will be able to meet the repayments in the future rather than whether they could have done so in the past.

and had a letter from the person he worked self employed for stating that he earnt now less than a certain amount in a year.

That is not exactly going to fill a lender with confidence.

This mortgage is shocking interest only was at just under 7% fixed for 3 yrs no way to get out without paying £7000 early redemption fee

When I had a mortgage I don't think it was ever as low as 7%

which he didnt realise until his first mortgage statement came through.

But in 2007 it would have been on the "Key Facts" document provided when the mortgage was recommended and again with the mortgage offer.

So what you are telling is that he either lacks the literacy or the common sense to read those documents. If you want to pursue your complaint further, I think that you would have to show why that was the adviser's fault.

She also sold him life insurance with critical illness but he had asked for life insurance and another insurance or joint that covered him for earnings if he was injured.

If you can show that he asked for income protection but was sold Critical Illness cover instead you MIGHT have a valid complaint.

However, as I say, you were not there so you do not know what was said.

beckyw1988

I have spoken to him about what happened and have actually been to speak to her since apparently shes had alot of complaints made about the products and services that she sold and has funnily enough moved jobs.
it was him and her in an office there is no proof but he wasnt bothered about critical illness just wanted to know that if anything like broken leg etc stopped him from working he could cover the mortgage payments.
He was pushed into the whole lot from what he has said to me about it had to take the insurance that she said otherwise would hold up the sale of the house etc he was a first time buyer and v young to be buying a house and iv never bought so dont know much about it hence why asking here.
When i said the mortgage is shocking it was the percentage etc is was the £7000 to get out couldnt transfer it only said this in the tiniest print in amongst lots of pages. and even just to get them to send you a letter about either putting it on to repayment or finding out what the extra £2000 of fees are for on the mortgage its costs £75

magpiecottage

beckyw1988 wrote: »

I have spoken to him about what happened

That is still his word against hers.

apparently shes had alot of complaints made about the products and services that she sold

That is hearsay and not relevant to your complaint.

and has funnily enough moved jobs.

So? The recession has caused lots of people to move jobs.

it was him and her in an office there is no proof but he wasnt bothered about critical illness just wanted to know that if anything like broken leg etc stopped him from working he could cover the mortgage payments.

As you say, no proof - unless it is on the fact find, which will be with the firm she represented at the time.

He was pushed into the whole lot from what he has said to me about it had to take the insurance that she said otherwise would hold up the sale of the house etc

Again, hearsay, not evidence.

he was a first time buyer and v young to be buying a house

But was he not over 18? Was he not able to read?

Like the mortgage, Critical Illness policies have clear "Key Facts" documents which set out what you will get for your money.

When i said the mortgage is shocking it was the percentage etc is was the £7000 to get out couldnt transfer it only said this in the tiniest print in amongst lots of pages. and even just to get them to send you a letter about either putting it on to repayment or finding out what the extra £2000 of fees are for on the mortgage its costs £75

It would be specified in the Key Facts document for the mortgage. If you think the terms are unfair you could in theory seek to have them have them declared as such under the Unfair Terms In Consumer Contracts Regulations 1999. However, the three year fixed rate for a mortgage which started in 2007 will have expired in 2010 so you can move to any other lender willing to lend to you.

dunstonh

apparently shes had alot of complaints made about the products and services that she sold and has funnily enough moved jobs.

That information is not in the public domain and even if true, it has no impact on your partner's complaint. There were too many mortgage advisers and a cull was already on the cards before the credit crunch. Mortgage only advisers were particularly hit as they were reliant on the mortgage market.

he was a first time buyer and v young to be buying a house

If you are saying he has a mental deficiency and wouldnt have been able to understand what he was being sold then there is the potential for complaint there. However, he was buying a house and that is far more complicated than the purchase of an insurance policy. So, it would be tough to use the mentally unable to understand excuse.

When i said the mortgage is shocking it was the percentage etc is was the £7000 to get out couldnt transfer it only said this in the tiniest print in amongst lots of pages.

No it is not.
It would have been on the key features illustration in the section covering all the product charges. This is a simple document laid out to a defined structure set in place by the FSA. It would also have been on the recommendation report issued by the broker. It would also have appeared on the contract signed by your partner.

beckyw1988

No need to be so rude u may do this sort of thing for a living but not everyone knows the ins and outs of this sort of thing or what to look for was hoping for advice from people that have some respect and don't just say ur talking rubbish and that my husband would really lie to me it was the company that she worked for that said she had complaints about her and that she had been moved no need for your reply

JuicyJesus

No need to be so rude u may do this sort of thing for a living but not everyone knows the ins and outs of this sort of thing or what to look for was hoping for advice from people that have some respect and don't just say ur talking rubbish and that my husband would really lie to me

Nobody has been rude, they are just not saying what you want to hear.

Mortgage sales and insurance sales are heavily, heavily regulated. Both dunstonh and magpiecottage are well versed in these regulations. They know what they're talking about. If your husband wishes to put in a complaint he can do so, there's nothing stopping him. However both of the above people know full well what someone looking at this complaint would look for.

beckyw1988 wrote: »

it was the company that she worked for that said she had complaints about her and that she had been moved no need for your reply

I'm sure she would be delighted to hear that her past employer is defaming her.

In any event it is largely irrelevant. If you put in a complaint and there were sales quality failings then these would be evident from the documentation that is turned up in the process of investigating it. That you said that someone else said that someone had had lots of complaints is going to be disregarded, and rightly so.

roonaldo

beckyw1988 wrote: »

No need to be so rude u may do this sort of thing for a living but not everyone knows the ins and outs of this sort of thing or what to look for was hoping for advice from people that have some respect and don't just say ur talking rubbish and that my husband would really lie to me it was the company that she worked for that said she had complaints about her and that she had been moved no need for your reply

to be honest, from what you have said it doesnt sound too bad. nothing sounds mis-sold. he was probably lucky to get a mortgage, he certainly wouldnt now with just 3 months books. a 7% rate isnt too bad, redemption penalties is normal. his circumstances at the didnt warrant a high street lender which is why it was placed with a sub prime lender in kensington.

you cant base one complaint on others, they might be for completely different things. every complaint is always judged on its own merits, not the merits of others. loads of mortgage advisers, IFA's, firms, banks, brokers are getting swamped with complaints at the moment as it seems to be fashionable to, so the fact she may have a few complaints isnt probably out of the norm.

magpiecottage

roonaldo wrote: »

so the fact she may have a few complaints isnt probably out of the norm.

Possibly all relating to non-existent PPI policies.