Missold mortgages

rosieposie49

Have been contacted by a company that I could make a claim regarding my mortgage. They said I could claim because I had gone through a broker and he had arranged the mortgage which would finish after we were retired. Have tried to find out more information on this but haven't had any success. Any suggestions.

Crashandburn

Have you been concerned about this issue before a claims management company found your number and promised 'riches beyond your wildest dreams'?

If the adviser had explained the reasons behind your choice of term and that it went beyond a possible fictitious retirement date, then you don't really have a claim to answer in my opinion.

shortchanged_2

Didn't you realise yourself that the mortgage would finish after you retired?

If not why not.

Let_Us_See

I HATE the vast majority of claims companies and view them as nothing more than scavengers. However, now and then, a case comes to light that deserves a review, and a mortgage term extending past the applicants' nominated retirement date (not necessary 65 years for self-employed) is one of these occassions. I am not claiming the mortgage was mis-sold, only that if the term extended past retirement, that proof of income and affordability should have been noted and documented, and clearly confirmed to applicants within suitability letter.

A mortgage term into retirement is not necessary bad advice, and in this case with full supporting documentation, a claim might be groundless. However, without proof of income into retirement, and how mortgage payments will be met, it might cause a few restless nights sleep.

holly_hobby

rosieposie49 wrote: »

Have been contacted by a company that I could make a claim regarding my mortgage. They said I could claim because I had gone through a broker and he had arranged the mortgage which would finish after we were retired.

Unless they have reviewed the POS docs (which they haven't), they have no idea as to whether you have any basis of claim - as stated a mge running past you scheduled age of retirement doesn't necessarily mean it was automatically mis-sold.

Furthermore should you wish to submit a complaint, then you don't need a claims company to do this for you - they have no infuence over the complaint process, but if successful will happily relieve you of a % of any compsentation.

If you give us a few more facts, we'll give you an idea of whether this has any legs or not.

Hope this helps

Holly

kingstreet

Let_Us_See wrote: »

I HATE the vast majority of claims companies and view them as nothing more than scavengers. However, now and then, a case comes to light that deserves a review, and a mortgage term extending past the applicants' nominated retirement date (not necessary 65 years for self-employed) is one of these occassions. I am not claiming the mortgage was mis-sold, only that if the term extended past retirement, that proof of income and affordability should have been noted and documented, and clearly confirmed to applicants within suitability letter.

A mortgage term into retirement is not necessary bad advice, and in this case with full supporting documentation, a claim might be groundless. However, without proof of income into retirement, and how mortgage payments will be met, it might cause a few restless nights sleep.

I concur.

dunstonh

They said I could claim because I had gone through a broker and he had arranged the mortgage which would finish after we were retired.

That doesnt make it mis-sold. The broker would have a simple one or two sentence risk warning in their recommendation letter. Did this claims company read your recommendation letter and documentation before telling you it was mis-sold?

Have tried to find out more information on this but haven't had any success.

The FOS has said they see no widespread areas of concerns over mortgages and most of the stuff claims companies are saying are things they would not upheld in a complaint.

By taking the mortgage into retirement, you can keep the monthly payments lower and by the time you get towards retirement, then amount you have left on the mortgage is very low. Frequently, people then use their pension lump sums to clear off what is left without taking it into retirement.

By all means, if you wish to stop it before retirement, let the broker know and they can do the administration to change the number of years on the mortgage and increase your monthly payments. No complaint needed.

The claims companies that operate in this area tend to put in scattergun reasons for complaint, listing dozens of reasons and allegations (most of which will be outright lies but in your name). They hope that at least one will stick and result in redress. The poor mortgage adviser will then suffer weeks of stress and anxiety despite doing nothing wrong. They will also be hit financially typically as complaints generate a cost (FOS fee is £500 for example even if complaint is rejected). With mortgage advisers not typically being big earners, a fraudulent or opportunistic complaint is not something you should do. They are not faceless banks who just absorb the costs. These are small local firms employing local people going who will suffer because of this.