Does he have a case?

chambta

A mate of mine wants to complain about his mortgage being 'mis-sold' though I've suggested (not what he wants to hear) that he's not got a leg to stand on.

He took out a 100% interest only mortgage in the late 90s and is now in financially difficulties. He cancelled the direct debit to his endowment barely a year in without, he says, realising the implications of doing so.

He now owes £5k more than was originally borrowed (but would have £20-£25k equity) and says that the bank wrongly advised him in the first instance and failed to properly explain what he was taking out.

Is there any point him even compaining to the bank in question?

ACG

Which bank? Did they offer an advised or non advised service?

But i imagine your right in that he probably doesnt have a great chance.

chambta

It was Natwest and I'm pretty sure it was non-advice though what went on behind the door who knows? His claims of being young and daft are hardly much excuse for signing something you don't understand.

ACG

Young and daft people shouldnt be taking on a mortgage then.

I would say he could be spending his time doing things that would be more beneficial. If he truly believes it speak to natwest but i think he would be wasting his time.

chambta

ACG wrote: »

Young and daft people shouldnt be taking on a mortgage then.

I would say he could be spending his time doing things that would be more beneficial. If he truly believes it speak to natwest but i think he would be wasting his time.

His mortgage statement each year showing a non-reducing balance was a pretty big clue what was going on.

ACG

The thing is, back then selling interest only mortgages wasnt an issue even if it was he had an endowment. What he does after he has seen the advisor is down to him and no one can take ownership of that apart from your friend.

chambta

ACG wrote: »

The thing is, back then selling interest only mortgages wasnt an issue even if it was he had an endowment. What he does after he has seen the advisor is down to him and no one can take ownership of that apart from your friend.

The policy was seemingly sold to him at the same appointment, whether by the mortgage seller or tied adviser I suppose matters little.

To me he's wanting someone to blame for his current issues and could in theory sell the property below market value (he's threatened with repossession despite payments of barely £150pm) and make a profit.

haras_nosirrah

but if he is missing payments with a monthly repayment of £150 and is in financial difficulty then he would have missed more payments had his payments been £450 a month

chambta

haras_nosirrah wrote: »

but if he is missing payments with a monthly repayment of £150 and is in financial difficulty then he would have missed more payments had his payments been £450 a month

Absolutely. And been repossessed years ago.

opinions4u

The mortgage was sold pre-regulation, so can't be classed as mis-sold.

Each annual statement he as had in recent years has said words to the effect "it's up to you to make sure that there's a repayment vehicle in place".

As for the endowment, time-barred.

So he's on a winner!

chambta

opinions4u wrote: »

The mortgage was sold pre-regulation, so can't be classed as mis-sold.

Each annual statement he as had in recent years has said words to the effect "it's up to you to make sure that there's a repayment vehicle in place".

As for the endowment, time-barred.

So he's on a winner!

I suggested as such. He seems to think that as I work for a bank 'you would say that'.