Possible mis sold mortgage?

dfwsometimesoon

Any views or advice re this would be greatly appreciated..

I contacted the FSCS re a Broker who had sold me a mortgage in 2006, (had initially gone to the FOS who forwarded everything to the FSCS as Broker was in default). The claim/complaint I had was re the MPI which I was advised must be taken out in order for the mortgage to go ahead. Anyway that was all fine.

I then received a letter from the FSCS requesting any mortgage documentation that I had, as they felt I had 2 cases....one for MPI and one for what they referred to as 'Mortgage Advice'..... is this what would be classed as mortgage mis sold??

I now have 2 separate references one with Deloitte (MPI) and the other with Capita (Mortgage Advice). Capita have recently contacted me and advised they are awaiting further info from the lender, which once received they will move on to finalise my claim (not really sure what this means however am willing for them to carry on lol)

To be honest I'm a bit lost re the 'Mortgage Advice' claim, initially when I sent the complaint for MPI I had mentioned the Broker Fees which I felt were excessive that was really it tho, am assuming this is why they thought it may instigate a 2nd separate claim?

Have done a bit of googling and mis sold mortgage claims have come up a lot however not really with any success stories etc... has any one claimed similar and actually been successful with any claim?

Edit: Well have just now received a call from Deloitte advising they are awaiting info from the insurance company and claim will be finalised on receipt... not really sure if this is good or bad news lol they don't really give much away! am assuming (hoping) if there had been no claim I would have heard back long before now?? initial claim was submitted May 2012...

sheflop

Unfortunately I'm not in a position to give advice, just wanted to see what people said about the possibility of the mis-sold mortgage.

My gran has got herself into a financial mess over the past few years, including being given an interest only mortgage when she was 77! We now have medical documentation as she's been diagnosed as senile with Alzheimers, so my mum's in the process of completing an official complaints form with Mortgage Matters (who completed finance checks on behalf of Accord) so that if some responsibility isn't taken she can take it to the financial ombudsman.

dunstonh

I then received a letter from the FSCS requesting any mortgage documentation that I had, as they felt I had 2 cases....one for MPI and one for what they referred to as 'Mortgage Advice'..... is this what would be classed as mortgage mis sold??

Anything can be mis-sold. If you have a mortgage and the mortgage was mis-sold then it would be a mis-sold mortgage.

Most MPPI complaints are rejected and the FSCS only uphold around 5% of complaints against mortgage advisers. The main area of complaint that is upheld is single premium MPPI. That would involve the mortgage as it is factored into the amount of borrowing. That would require knowing about the mortgage.

Was yours a single premium MPPI or monthly premium?

dunstonh

Unfortunately I'm not in a position to give advice, just wanted to see what people said about the possibility of the mis-sold mortgage.

You ought to do it on your own thread as it is not fair on the OP for you to hijack their thread on an unrelated subject. However, I will answer your post now but if you want to discuss it more then create your own thread.

My gran has got herself into a financial mess over the past few years, including being given an interest only mortgage when she was 77!

you add an exclamation mark indicating you are surprised. If she had debt already then passing debt from one provider to another should not surprise you. There is nothing wrong with having a mortgage at that age. Not desirable by any means but if you have got yourself into a financial mess then the mortgage is the cheapest form of borrowing. If it was new borrowing and not covering existing debts then that would be a concern.

dfwsometimesoon

dunstonh wrote: »

Most MPPI complaints are rejected and the FSCS only uphold around 5% of complaints against mortgage advisers. The main area of complaint that is upheld is single premium MPPI. That would involve the mortgage as it is factored into the amount of borrowing. That would require knowing about the mortgage.

Was yours a single premium MPPI or monthly premium?

Well that's just burst my little bubble of hope lol

It was monthly paid, wouldn't allow me to cancel, even after mortgage was switched to new provider....had to cancel DD before they eventually cancelled policy.

Thanks for the advice dunstonh bit peeved now that they've taken so long (since May 2012) to most prob come back with a rejected response

dunstonh

dfwsometimesoon wrote: »

Well that's just burst my little bubble of hope lol

It was monthly paid, wouldn't allow me to cancel, even after mortgage was switched to new provider....had to cancel DD before they eventually cancelled policy.

Thanks for the advice dunstonh bit peeved now that they've taken so long (since May 2012) to most prob come back with a rejected response

Monthly premium wouldnt require any information from the lender though. So, its strange that they wanted that. Maybe something else has been spotted that you dont know about.

dfwsometimesoon

dunstonh wrote: »

Monthly premium wouldnt require any information from the lender though. So, its strange that they wanted that. Maybe something else has been spotted that you dont know about.

possibly, Im not holding out much hope now to be honest.

There was a section in the mortgage that stated something like "fees including insurance premium payments detailed in section 12a" however when you go to section 12a it states monthly insurance premium n/a.. I always wondered whether this meant an insurance policy was also front loaded without my knowledge, the fees for the mortgage were over 5k on a mortgage of £54k which now looking back and after switching I wonder whether all was a true reflection of charges incurred... when switching providers after the 3yr fixed rate I paid £59k which meant having paid £380 per month for 36 months Id knocked a massive £1k of the balance lol I know with interest etc ur not gonna take a lot of each year however since switching and now being in year 3 of a 5 yr fixed rate (same interest rate) Iv paid off 7k so something really doesn't seem right about the 1st mortgage... anyway will wait and see what they say when all is finalised.

With regards to the monthly premium policy I was told that this HAD to be taken out or the mortgage wouldn't go through. At the time I was working for an agency on temp contract 16 hrs per week and wouldn't have been covered anyway. Became self employed 3 months later which is when I 1st contacted them to cancel to which they said wasn't possible. It actually ran for 4yrs, 1 year after the original mortgage had been switched before I cancelled the DD and they wrote and called me constantly to say was in arrears eventually writing to say as I had missed 3 payments they had no choice but to cancel !!

will just wait now and see what they have to say, had nothing when I contacted them so if comes back all above board and no redress due then haven't lost anything lol.

dunstonh

the fees for the mortgage were over 5k on a mortgage of £54k which now looking back and after switching I wonder whether all was a true reflection of charges incurred.

Charges dont have to be a true reflection. That is an internet myth. However, typically charges would be a few hundred pounds for lender and maybe around £500 for broker. So, £5k odd seem very strange.

With regards to the monthly premium policy I was told that this HAD to be taken out or the mortgage wouldn't go through. At the time I was working for an agency on temp contract 16 hrs per week and wouldn't have been covered anyway. Became self employed 3 months later which is when I 1st contacted them to cancel to which they said wasn't possible. It actually ran for 4yrs, 1 year after the original mortgage had been switched before I cancelled the DD and they wrote and called me constantly to say was in arrears eventually writing to say as I had missed 3 payments they had no choice but to cancel !!

Sounds a right mess. The first bit in an unprovable allegation but the fact you were on temp agency contract helps your complaint due to lack of eligibility. Most MPPI covers self employed so that wouldnt be an issue. However, point of sale is what matters when looking at mis-sales.

_Andy_

Sounds like the £5k in question was early repayment charges

dfwsometimesoon

_Andy_ wrote: »

Sounds like the £5k in question was early repayment charges

huh....there were no early repayment charges and the mortgage wasnt paid off early.... the 5k+ was added to the mortage amount when the mortgage was 1st set up...why would they add an early repayment charge when the mortgage was only just being set up?? the fees were broker fees solicitor fees etc involved in setting up the mortgage not ending it.....

_Andy_

ok ok just a thoughgt