Mis-Sold Mortgages?

Maryb87

Hi there, I'm a newbie, so i'm sorry if this is in the wrong place!! I've just seen on Gladstone Brookes that they are doing claims for mis-sold mortgages. I can't seem to find any information on the MSE website about these claims though. I would like to see if i am eligable, but don't want to pay someone else for the priviledge, I'm looking for information on how to enquired myself with the bank.

A bit of background - I bought a house with my then boyfriend (later husband, and now ex!) I was 19/20 when we bought the house. The mortgage was 100% and interest only, and was litterally 1month before the markets crashed. I have struggled over the last 6years to pay the mortgage - but have made sure each payment has been met on time and there have been no penalties against it. Since my husband and I are now divorced however I am unable to remove his name from the mortgage, because the bank will only let me reduce it from 100% to 90% which I don't have 15k to do.

I've worked really hard over the last 2 years to reduce my debt, but in doing so I have no savings, and still a loan and a credit card left to pay off.

I hope the above makes sense and that someone will be able to help me?

Thanks for your time.

Wh05apk

Which part do you think constitutes being mis-sold?

You say you had struggled to pay the mortgage, had it been on repayment, your payments would have been far higher, causing more financial stress.

betmunch

Sorry theres no mis-sale in your post.

as Wh05apk says, where do you feel the mis-sale took place?

ACG

Nobody could see the crash coming, even if it had been on repayment as has been said it would be higher repayments and you wouldnt be able to get it changed to interest only now either.

Your circumstances have changed, the advisor cant be blamed for that.

Maryb87

I'm not saying anyone was to blame, or that the crash could've been predicted? I was just looking for information on whether MSE had any information about these claims that was all. I didn't understand about interest only mortgages and was unsure that I should've been sold an interest only mortgage at 19, for an ammount which was clearly too much for us to be able to repay.
I'm not blaming any advisor, I was just asking a question??

dunstonh

I've just seen on Gladstone Brookes that they are doing claims for mis-sold mortgages.

Doesnt surprise me. You should see some of the rubbish complaints they have submitted. At one of our compliance meetings they were one that came up as an example of shoddy complaints that we need to be aware of.

I would like to see if i am eligable

Eligible for what? You are not eligible for anything.

I'm looking for information on how to enquired myself with the bank.

It is very simple. Why do you think your mortgage was mis-sold? If you dont think it was then it wasnt. If you think it was then you will have reasons.

Most claims companies are nothing more than complaint generators. Over half the complaints they submit are fraudulent. They send them in on the hope they get lucky. That works in some cases with PPI (and many of these mortgage angled cases end up being glorified MPPI complaints). It would rarely work on mortgages.

The mortgage was 100% and interest only, and was litterally 1month before the markets crashed.

Not ideal but you agreed to it and the lenders agreed to it so both sides were foolish but no rule breach has occurred there. It was a failing of the credit boom that both consumers and lenders were greedy and common sense went out of the window.

Mortgages became regulated in October 2004. So, any application prior to that date is pre-regulation. Any application after that date had much improved documentation. The mortgage key features illustration is one of the few decent things the FSA brought in during its tenure.

The big problem with real mis-sold mortgages is that it usually involves the borrower being just as guilty as the mortgage adviser. Fake payslips, inflated income given, debts left off the application etc. It takes two to tango with most mortgage mis-sales. If you complain you are drawing attention to your application and if it contains false information the lender can add you to the blacklist (which lenders check) and you can destroy your ability to borrow again. In some cases, they may choose to call in the debt as it was obtained on fraudulent terms. So, if you are in that situation, it may be common sense to keep quiet.

The vast majority of the population with mortgages have no reasons for complaint.

I didn't understand about interest only mortgages and was unsure that I should've been sold an interest only mortgage at 19

At 19 you were an adult. it doesnt matter if you were 19 or 59. The same laws and rules apply. You are advised to seek legal advice on mortgages. Yet many people do not nowadays as they want to save the money. The solicitor points out the warnings. If you bypass that then its up to you to know those risks or read the documentation that has those risks mentioned. What bit about interest only did you not understand? After all the name does give it away.

Maryb87

I would never lie on any forms or applications. And I did seek legal advice but nothing that you have stated above was ever discussed.
Also - yes you are correct I was naive for not understanding what an interest only mortgage is/was, however maybe you are in a better position for understanding this given your career/degree in the field? Not everybody has these qualifications or careers.

dunstonh

I would never lie on any forms or applications. And I did seek legal advice but nothing that you have stated above was ever discussed.

The solicitor is there to give you the legal advice and point out risks of your contract. If you have issue with the legal advice then complain to the solicitor.

Also - yes you are correct I was naive for not understanding what an interest only mortgage is/was, however maybe you are in a better position for understanding this given your career/degree in the field? Not everybody has these qualifications or careers.

It would be expected I know more but the documentation issued at the time contains all these risk warnings. Did you read it?
The solicitor, if you employed them to give you legal advice and not just conveyancing (the former being the bit many people cut out nowadays whilst going just for conveyancing) explains these things to you.

You dont need qualifications or career experience to read the mortgage document that outlines the risks.

opinions4u

Maryb87 wrote: »

Hi there, I'm a newbie, so i'm sorry if this is in the wrong place!!

No, I think you've found the right place.

I've just seen on Gladstone Brookes that they are doing claims for mis-sold mortgages.

While PPI is a different product to a mortgage, the mis-selling industry has a remarkable statistic attached to it. Apparently 50% of PPI mis-selling claims submitted via a claims company are for customers who never even had a policy. So the first thing I'd suggest is to believe nothing.

I can't seem to find any information on the MSE website about these claims though.

I have never seen a post on here that says "I was mis-sold a mortgage and have just received my cheque for £xx thousand". So I'd suggest starting from a point of low expectations.

I would like to see if i am eligable, but don't want to pay someone else for the priviledge, I'm looking for information on how to enquired myself with the bank.

A very sensible approach.

A bit of background - I bought a house with my then boyfriend (later husband, and now ex!) I was 19/20 when we bought the house. The mortgage was 100% and interest only, and was litterally 1month before the markets crashed.

The markets crashing is irrelevant.

I have struggled over the last 6years to pay the mortgage - but have made sure each payment has been met on time and there have been no penalties against it.

A sensible approach.

Since my husband and I are now divorced however I am unable to remove his name from the mortgage, because the bank will only let me reduce it from 100% to 90% which I don't have 15k to do.

Which they are quite at liberty to do.

I've worked really hard over the last 2 years to reduce my debt, but in doing so I have no savings, and still a loan and a credit card left to pay off.

I hope the above makes sense and that someone will be able to help me?

It does make sense.

You had debts. You wanted a mortgage. The mortgage sold to you had the cheapest possible payments. Indeed, as you admit to having struggled to make the payments the recommendation of an interest only mortgage is sound.

You will, at some stage, need to get off IO though.

Unless you can specifically identify why the mortgage was inappropriate you won't get anywhere with a mis-selling claim.

The ex-husband, who seems to have been mis-bought, could offer to pay a chunk off the mortgage conditional on being removed from the commitment. He is, after all, jointly liable for the negative equity with you. Work with solicitors to make sure this happens in a legally watertight way.