Mis-Sold Mortgage?

dunstonh

glowballs wrote: »

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...

Ok, lets break this one.

we were told we can get 125% NR Together Mortgage and that's it

Did you borrow above 100%? If so, then this was pretty much the product you would buy. So, no mis-sale reason there.

the advisor was very short-sighted in offering a 30-year mortgage which would take me to 59yr old before paying it off

That isnt a mis-sale reason. The typical mortgage repayment range is 25-35 years. That is normal. It would be repaid before retirement. So, nothing wrong with that at all.

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.

The risk warnings on mortgage documentation have been significant and high profile for years. Unless you are mentally unable to understand simple things like this then there is no reason for complaint.

Moving expensive debt onto longer term cheap debt is very common an ideally suited to those that need to do it for affordability reasons. The fact you went with NR together would indicate that it was almost certainly affordable.

However, lets say there was a failing in telling you information about moving it to longer term debts, lets see if it applies to you. Have you built up personal savings that would exceed the amount of those short term debts and can now be repaid? No. You are on a DMP now. So, even if you had been told it would not affect you. You cannot complain about hypothetical things that do not apply to you.

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...

So, the contract giving you the monthly payments, the illustration confirming the monthly payments and the advice from your solicitor which would have discussed the monthly payments were not enough for you?

Even if the FOS would have considered your complaint, they would almost certainly not uphold it based on their recent comments that they would not award money in such circumstances.

We see some genuine complaints on here and some some completely daft ones. Yours sits in the completely daft ones. However, I add the caveat that if you have a mental disability/illness and are unable to understand such basic things then I apologise for saying it is daft. That is the only real area where you would have scope.

glowballs

Thanks for that everybody, oh and R P W.. Silly me, thinking the ADVISOR was charging £400 in fees to 'advise'... oops, my mistake.

We went to see the 'advisor' for advice, being totally clueless regarding mortgages and had no prior knowledge of APR's etc, we expected good honest and useful advice from the advisor.. we didn't get it!!

Kingstreet, it was April 2007 for the FOS taking over, I have the letter from them stating it...

Short changed... as above I expected 'good, sound advice' - if you approached your bank manager would they give you something they KNEW you'd not be able to afford, but by blinding you with APR's, LTV's, fixed terms etc get your signature on that dotted line?

Finally, if the 125% mortgages weren't mis-sold and abad product how come nobody offers them any more?? - Surely this suggests they were a bad idea?

glowballs

dunstonh wrote: »

Ok, lets break this one.

"Unless you are mentally unable to understand simple things like this then there is no reason for complaint"

Who the hell do you think you are, discussing my 'mental ability'... I came here asking for Advice, not some IDIOT to grief me...

I expect an apology for those comments immediately.

I am fully and mentally able to absorb this information, but without you knowing what information was given to me, what documentation the solicitor agreed etc I fail to see how you can query my ability.

I'd guess I have higher academic grades than you do, although not very knowledgable on mortgages at 20-odd years old!

ILW

You went to the adviser because you wanted a mortgage and he got one for you. The fact that you then ran up a load of debt is not anybodies fault but your own.
The chances are that you would have been paying more in rent than you are on the mortgage.
Just sort out how you are going to get on with it and stop trying to blame others.

glowballs

.. also, information from my solicitor was pretty much non-existent and as a result of the many blunders he created for us he was sacked from his practice.... so that was a pointless comment, again speaking without knowing the full facts!

R_P_W

At the time you took out the mortgage - could you afford the payments?

Did you have kids then or did they come after?

Did you have credit card debt or did that build up after?

APR's, LTV and fixed terms are all pretty simple concepts. What consideration and diligence of your own did you undertake both before applying for a mortgage and then considering what you were offered?

Did you actually pay for advice? Or was it a fee to find you a mortgage?

glowballs

ILW wrote: »

You went to the adviser because you wanted a mortgage and he got one for you. The fact that you then ran up a load of debt is not anybodies fault but your own.
The chances are that you would have been paying more in rent than you are on the mortgage.
Just sort out how you are going to get on with it and stop trying to blame others.

ILW... Aren't you missing the point of an 'Advisor'?? - to ADVISE?

If you went to the CAB and spoke to an 'Advisor' wouldn't they advise the BEST course of action? - Yes, therefore I'd EXPECT the mortgage advisor to 'advise' me of the best mortgage and the potential pit falls...

If I was looking for blame I'd get it to one of these online mis-selling companies...

As for paying more in rent, I'd doubt that very much... Buy hey, like others on here you're all the fountains of all knowledge, the oracles...

glowballs

R_P_W wrote: »

At the time you took out the mortgage - could you afford the payments?
I queried it, but advisor cooked the financial stuff to make it look like we could.

Did you have kids then or did they come after?
Had one child, the other came later

Did you have credit card debt or did that build up after?
Yes, all CC debt was added to the mortgage

APR's, LTV and fixed terms are all pretty simple concepts. What consideration and diligence of your own did you undertake both before applying for a mortgage and then considering what you were offered?
Yes, I agree. As is modus operandi, criminal law, law of tort if you're that way interested.

Did you actually pay for advice? Or was it a fee to find you a mortgage?

It was a fee from the mortgage company I guess

kingstreet

glowballs wrote: »

Kingstreet, it was April 2007 for the FOS taking over, I have the letter from them stating it...

That would depend on what you were complaining about. If you've worded your compaint in such a way the FOS has deemed it a complaint about consumer credit, it would be April 2007.

However, this is a complaint over regulated mortgage advice and the suitability of a regulated mortgage contract. That falls under the FOS remit from 31/10/04 in my opinion.

R_P_W

Actually depending where in the UK the costs of renting are higher than a typical mortgage (although maybe not a 125% one).

I wouldnt recommend a 'mis-selling company' - its a quick way to get ripped off.

I think your Key Facts Illustration would detail what service the advisor was providing you. I cant remember the exacy words/terms but one of them is to provide actual advise on which mortgage is best for you and the other is to identify a suitable mortgage explain the costs and you decide.