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It's getting close.... the great IO mortgage miss-selling scandal
Comments
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Thrugelmir wrote: »
Suspect Barclay's issues may surround the products that were sold as a vehicle to repay the mortgages. Same can be said of HBOS. As its well documented as far back as 2004. That branch staff were set high targets for product sales, again that may have lacked suitability or paid high commission levels back to the bank.
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You surprise me.
They wouldn't have targeted unsuitable products, with high commission and fees, at the expense of long term customer best interest, surely not.;)
Next you will be telling me that special polish they wanted to put on my new car, at great expense,really would have stopped the paint wearing out."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »Could be a rather unique situation brewing whereby those struggling with repayment mortgages, moved to IO mortgages under "forbearance" then get compensation
You've got to stop these links to the Daily Mail - they're embarrassing.
They've helpfully put a calculator on the page linked to in the OP. It calculates the difference in monthly cost between IO and repayment. I'd call it a mortgage calculator - they've called it a "IO mortgage timebomb calculator".:T0 -
Be afraid - that's dynamite you know.
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Mortgage advisors are the ones who should be worried about this.
I doubt they will be. Mortgage regulation only started in October 2004. So, you can forget any pre 2004 cases. The mortgage KFI was introduced that month too. It carries the risk warnings as prescribed by the regulator. A half decent report by the adviser carries the warnings too.
No doubt there will be some but people complaining need to be careful. Many will effectively be admitting mortgage fraud at the same time and find themselves blacklisted on the register preventing them from getting borrowing again.
It will also be hard to work out how any redress could be paid. It would be mightily unfair if people who paid less each month were then gifted money to pay the mortgage down whilst others who were not stupid and did things right suffer because of it.
A lot of these people within interest only have good equity now. So, they should be encouraged to sell and go rented or scale down and perhaps longer term, look at equity release. It would just be very wrong if the interest only borrowers were to gain financially from it other than from equity in the property. That said, we know half of PPI complaints are fraudulent. No-one seems to be putting a stop to that.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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I doubt they will be. Mortgage regulation only started in October 2004. So, you can forget any pre 2004 cases. The mortgage KFI was introduced that month too. It carries the risk warnings as prescribed by the regulator. A half decent report by the adviser carries the warnings too.
No doubt there will be some but people complaining need to be careful. Many will effectively be admitting mortgage fraud at the same time and find themselves blacklisted on the register preventing them from getting borrowing again.
It will also be hard to work out how any redress could be paid. It would be mightily unfair if people who paid less each month were then gifted money to pay the mortgage down whilst others who were not stupid and did things right suffer because of it.
A lot of these people within interest only have good equity now. So, they should be encouraged to sell and go rented or scale down and perhaps longer term, look at equity release. It would just be very wrong if the interest only borrowers were to gain financially from it other than from equity in the property. That said, we know half of PPI complaints are fraudulent. No-one seems to be putting a stop to that.
That seems to be the way BoE etc like it. The whole credit crunch "cure" seems to be about rewarding the chancers and punishing the prudent.0 -
Referring to another post on another thread, heres a prime example of someone now stating the correct things!
The key being, she's stating no one else told her she wouldn't be able to afford the repayments.Miss Wadham said: ‘I didn’t pick an interest-only mortgage because it was the cheapest option.
‘I wanted to get out of a rotten relationship and I couldn’t afford a repayment mortgage at the time. The plan was to change to a repayment mortgage later down the line.
‘No one told me at the time there was no way I’d be able to afford a repayment mortgage on my income.’
The very fact that she stated herself, she couldn't afford the repayments and therefore chose interest only seems to have been forgotten, and she's certainly implying it was someone elses responsibility to tell her this, and presumably, deny the mortgage.
But it's all the right words "no one told me I wouldn't be able to afford it"...and the stories are starting to surface.
She took at £68,000 loan on a £13,000 income.
Be interesting to start hearing of the claims from people stating they shouldn't have been given a mortgage in the first place.....they'd have been furious at the time....much the same as people are now.
She says she can't afford to rent, as a 1 bed flat would be £460 a month.
There does appear to be a good 50-60k worth of equity that's been kept hush hush in the "poor me" story though.0 -
Whatever happens the Government will not allow people to take responsibility for their actions and will come up with an amnesty or something similar whereby they get given their homes or rent for £50 a month.... think i'm joking, you wait and watch, they will never allow a high number of distrssed sellers/reposessions etc when the tax payer can pay!
The problem I have is all these people are ADULTS and hence should in theory been able to understand/check or verify anything they didn't understand etc. The blame game continues...0 -
mystic_trev wrote: »That and the fact they get a Statement once a year showing nothings been paid off from the Capital amount.
Yeah, yeah.
Apart from that though. Apart from having signed a statement that there will be a mortgage repayment vehicle in place, having received an annual statement showing how much they owe and not repaying any debt, what proof is there that they haven't been mis-sold to by the banksters?I doubt they will be. Mortgage regulation only started in October 2004.
Is that right? I have my doubts. Weren't lots of the endowment mis-selling thingies from the 1980s?0 -
Whatever happens the Government will not allow people to take responsibility for their actions and will come up with an amnesty or something similar whereby they get given their homes or rent for £50 a month.... think i'm joking, you wait and watch, they will never allow a high number of distrssed sellers/reposessions etc when the tax payer can pay!
The problem I have is all these people are ADULTS and hence should in theory been able to understand/check or verify anything they didn't understand etc. The blame game continues...
I blame the Wisconsin Land Title Association and the France Gestion Immobliere myself. When can I expect a cheque?0
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