Endeavour/ the mortgage shop secured loan

donny_osmonds_mad_fan

hi, just trying to sort out my other half's 'finances' I have a few questions relating to a secured loan.

first, is a secured loan on a property thought of in the same way as a mortgage and thus liable to be mis sold?

if it is classed the same way he meets the criteria, yes he was told he was sub prime, yes he was told to go to a certain lender for speed, yes he was charged a hefty brokers fee (£1000) and many other ticks against it all.

He was also advised that whilst the payments were large for this plus the mortgage about 60-70% of net income. He was told that was ok as it was only for a few months and then they could remortgage and consolidate it all into one lower payment but then the market crashed dramatically, house fell into negative equatity which meant that was impossible.

so is this brokers fee wrong and claimable? plus there was £4,000 added as PPI, would he be able to claim he was mis sold if so who does he complain to, endeavour, the mortgage shop or restons solicitors who are now chasing the outstanding debt of 33k now the house has been repossessed and thats what is outstanding?

many thanks.

dunstonh

first, is a secured loan on a property thought of in the same way as a mortgage and thus liable to be mis sold?

Any product can be sold or mis-sold.

if it is classed the same way he meets the criteria, yes he was told he was sub prime, yes he was told to go to a certain lender for speed, yes he was charged a hefty brokers fee (£1000) and many other ticks against it all.

£1000 is not a hefty fee. Although it doesnt matter. There are no rules on how much a firm can charge. That is just a myth put about by scam claims companies to try and get you to use them.

so is this brokers fee wrong and claimable?

No. There are no rules about broker fees and what they can or cannot charge. There have been some really heft ones taken by some greedy sods (typically hefty would be £3k to £5k). However, nothing stops them from doing so and £1k is actually very light.

plus there was £4,000 added as PPI

Single premium PPI is bad. It should be monthly premium. So, that is an easy complaint to make and expect to win (either as a refund of premiums plus interest or a recalculation of what would have been paid had it been monthly premium with difference refunded)

If he was sold sub prime when he could have got prime then that is a mis-sale. However, that is often harder to prove and you have to be wary that if the application included false data supplied by your other half at the time, then he could be added to the fraud register and that could make any future credit impossible or damned expensive to get. So, if he has given porkies in the application himself, he may be better to keep quiet on that front. That wont affect the PPI complaint which is independent of any mortgage complaint.

donny_osmonds_mad_fan

many thanks picking through such problems is large and a total minefield and one by one we are getting there.