Mis-Sold Mortgage?

glowballs

Hi,

I believe I've been mis-sold my mortgage, however after receiving nothing useful from the agency, I approached the Financial Ombudsman Service.. However, they said they can't accept the complaint as they didn't take juristiction of such companies until April 2007 and that the agency (Your Move) only have a 'Consumer Credit Licence'

Anybody else had a similar problem and if so, who can I refer this complaint to?

Regards,

Steve

GMS

Why do you think your mortgage was mis-sold?

glowballs

Hi,

Lots of reasons.. Basically we were told we can get 125% NR Together Mortgage and that's it, the advisor was very short-sighted in offering a 30-year mortgage which would take me to 59yr old before paying it off fully... Not given enough advice about the risk of the 125% mortgage, adding credit cards to it and paying 3k credit card debts over the 30 year period..... etc. etc...

Yorkie1

None of that immediately appears to be mis-sold.

What particularly is the problem?

glowballs

Yorkie1 wrote: »

None of that immediately appears to be mis-sold.

What particularly is the problem?

The problem is that a few years on we're in a DMP, negative equity, have 2 children and realised we're expected to pay £800 PCM for a mortgage which, in hindsight and if we were given the correct and focussed support we'd not have took on the mortgage...

GMS

glowballs wrote: »

The problem is that a few years on we're in a DMP, negative equity, have 2 children and realised we're expected to pay £800 PCM for a mortgage which, in hindsight and if we were given the correct and focussed support we'd not have took on the mortgage...

If the adviser pointed this out and said they were not prepared to arrange the mortgage fo you would you have kindly taken their advice or gone and found another broker who would arrange it for you?

If the property had doubled in value would you claim it was mis-sold?

holly_hobby

Sorry negative equity and having children to provide for isn't really grounds for a mge mis-sale.

It would also be reasonable to assume that you were aware that in adding unsecured and os debt to your mge borrowings in excess of 100%, over the mge term, that you were....

A - immediately into negative equity

B - reducing the high interest on rolling credit or short term borrowings and improving your immediate disposable income , at the cost of holding it over a longer term and overall paying more (ie - you say 30 yrs in this case and if you failed to make any lump sum reductions over the term to take account of the added debt). Of which the illustrations would have noted what the anticipated overall cost of the mge over the entire 30 yr term would be (based on the mge product and following SVR/BMR at the time)

C - having a 30 yr term mge isn't in itself a mis-sale - but to be fair I would expect to see a term of this duration in connection with a pension mortgage, or on an capital and interest basis (to reduce monthly costs) for any relevance OR if this was an interest only mge (not supported by a pension), that a 30 yr term repayment vehicle(s) was the shortest term you could afford, hence a 30 yr mge term was written alongside.

Notwithstanding issues regarding a mortgage term into retirement (which doesn't appear to be the case here)

If you can put a bit more meat on the bones, it would help, but on the face of it, I don't envisage the current financial difficulties you find yourselves in to result in a jusitified complaint - which I know you may find disappointing.

Hope this helps

Holly

shortchanged_2

What exactly were you expecting when you took out this mortgage?

kingstreet

Any claim of "mis-selling" is judged on the pre-sale paperwork issued by the adviser to the borrower.

You need to refer to the initial disclosure document, key facts illustration, suitability letter and mortgage offer and set out the reasons why the recommended product did not meet your needs/circumstances at the time and how another product would have been more suitable.

Hindsight, or "buyer remorse," are not allowable reasons for a complaint to be upheld.

AFAIK the FOS took responsibility for mortgage complaints WEF 31/10/2004 when FSA regulation of mortgages started and replaced the Mortgage Code's system of self-regulation.

ILW

I thought mis sold just meant you couldn't or didn't want to repay the sum borrowed for whatever reason.

R_P_W

Are you being serious? This is a joke isn't it?

What is wrong with having a 30 year mortgage? I assume in 2007 when you took out the mortgage you did the basic maths and you would know how old you would be in 30 years? You will still be working at 59 wont you?

It is up to you to determine whether you can afford a mortgage - not an 'advisor'.