Claim against HSBC

Tomjo0109

Hi,

This is a new post for a first time user, please go easy!!

I was looking for some advice 0 I took out an interest only mortgage when I moved house in autumn 2006. I do not believe it was taken out in our best interest as me and my wife were worried about the payments once the repayment part kicked in. The mortgage is with HSBC and has crippled us for a long time. Can I put a claim in against HSBC for mis selling me the interest only mortgage? If so, how do I go about it? I don't really want to use any third parties to complete the claim.

Thanks

Dave_Ham

Here we go again....

No, no and no.

Someone with more time and patience may be along soon to tell you why...

_Andy_

Genius. Just genius.

Wh05apk

Sorry, I don't understand your complaint, you are interest only, the repayments to which are crippling you, but you feel they should have made you have a repayment mortgage which would have cost hundreds more? surely just paying interest only has done you a favour?

dunstonh

I do not believe it was taken out in our best interest as me and my wife were worried about the payments once the repayment part kicked in.

Easily sorted. All you need to do is write a cheque out for the capital repayment part of the monthly payment you havent paid, send it to HSBC and ask them to convert you to repayment mortgage.

The mortgage is with HSBC and has crippled us for a long time.

Which suggests that you cannot afford the capital and repayment option.

Can I put a claim in against HSBC for mis selling me the interest only mortgage?

You can complain about the colour of the carpets in their branch if you like. Nothing to stop you putting in silly complaints.

Think about this logically. You have paid less each month than a repayment mortgage. You now want them to pay you money because you havent paid them money. That is illogical and daft. Thankfully, the FOS have made it clear that they do not expect complaints on that basis to succeed.

Also, if you complain on that basis, HSBC will have to convert you to repayment mortgage as that is what you are asking them to do with your complaint. So, you monthly payment will go up significantly. Just what you need if the interest element is crippling you.

This is the ugly side compensation chasing. Looking to make spurious complaints for financial gain.

meer53

I'm with Dave Ham.

But as you're a newbie, i'll ask a question. Why do you think the mortgage was missold ? YOU make the decision to take out the mortgage and YOU sign to agree to it, no-one forces you to sign a mortgage agreement.

If you say that the interest only mortgage has crippled you, then how would you have managed on a repayment mortgage ?

It's not misselling, please don't let any claims company convince you otherwise. If you're struggling, speak to your bank for advice, or post on here.

kingstreet

Did you ask someone to advise you on the right mortgage repayment method, after analysing your circumstances?

This is known as "advice and recommendation".

If you opted for "information only" and chose your own mortgage product and repayment method, you may find you mis-bought, rather than were mis-sold.

Please set out the process you went through to obtain your mortgage, referring to the documentation you have from that time.

dunstonh

YOU make the decision to take out the mortgage and YOU sign to agree to it, no-one forces you to sign a mortgage agreement.

Dont forget all the risk warnings in big print on the offer letter/KFI and the recommendation to seek legal advice (which so many ignore now) where the solicitor would tell you the major risks.

There is also the name of the product "interest only". Sort of gives it away unless you are really stupid.

Thrugelmir

Tomjo0109 wrote: »

I do not believe it was taken out in our best interest as me and my wife were worried about the payments once the repayment part kicked in.

So why did you apply for the mortgage if it wasn't in your best interest?

Ultimately the decision was yours.

ScotlandM

If you can go back in time, move out and not buy the house. Rent somewhere else for cheaper. Then HSBC will be happy to refund any mortgage payments.

worried about the payments once the repayment part kicked in

You mean you were worried about repaying the whole mortgage at the end of the mortgage term. I'm sure it was explained to you that you had to have a repayment vehicle, an endowment policy, secret savings, pension lump sum, expected inheritance or winning lottery ticket. This fact can't have escaped you and if you didn't like it you shouldn't have signed in 2006 and if you didn't understand it...should probably be in care. (sorry)

crippled us for a long time

You mean the worry of repaying the mortage at the end of the term or paying the interest only monthly payment?


And finally, you ask what you can claim from HSBC. Guessing your answers to the above i'll assume that you could have paid a repayment mortage. (several hundred pounds higher than your current monthly payment). This extra money should have been saved for the end of term when you had to pay it back, so you should have a large sum of money somewhere. You could fight HSBC to take the money and switch you to a repayment mortgage and you'd give them this large lump sum and then pay the larger monthly payment. You could then fight them for a couple of thousand pounds you have paid in extra interest payments. However, you'll lose. The money you didn't pay them you were recieving interest from, you can't keep that interest and claim back HSBC's interest.

The other assumptions are that the interest payment has crippled you and you are broke. In this case as I said to begin with go back in time and don't move into the house.