Mortgage Miss-Sold?

imperimus

Hi,

I bought my first house in 2007 and i use the mortgage adviser at the estate agent which I believe was part of Country Wide property services. At the time i was advised that i was best to roll all of my debts into a single mortgage as this would provide the best deal, and they arranged a mortgage with Northern Rock. This gave me a mortgage' (part unsecured) of around 125%, however i feel now that this was not the correct advise. The unsecured debt i believe is going to cost me far more this way and I will never be able to re-mortgage due to the high value of my mortgage and what is now negative equity given the fall in house prices. There are also items like the life assurance which more i look at do not look quite right as this was done by the same people.

Does any one think I could claim anything back? who would be the target; the adviser or the mortgage company?

many thanks in advance.

dunstonh

At the time i was advised that i was best to roll all of my debts into a single mortgage as this would provide the best deal, and they arranged a mortgage with Northern Rock.

That is very common as short term debts tend to be expensive whereas mortgage debt is cheap.

The unsecured debt i believe is going to cost me far more this way and I will never be able to re-mortgage due to the high value of my mortgage

How much were you paying on the old debt compared to NR?
Could you have got the mortgage without consolidating? (a key question as frequently the answer is no when you are looking at 125%)

and what is now negative equity given the fall in house prices.

Irrelevant. That has no impact on the 25% and negative equity is a risk with buying a house. An occurrence that has happened a number of times and house price drops are expected typically once a decade.

Does any one think I could claim anything back?

Going by the latest FOS feedback, it doenst look like it. They feel most mortgage complaints have no merit and the only real area of concern is where subprime was used when prime or near prime would have been more suitable. At this time, nothing you have said indicates any wrong doing. To be sure, you would need to check the interest rates you were paying prior to the mortgage and those with NR. You would also need to check if NR would have considered the mortgage with your debts as they were prior to consolidating them. Lower interest rates or refusal to lend blow any complaint out of the water.

who would be the target; the adviser or the mortgage company?

The mortgage broker is responsible for the advice they give. However, rather than referring to them as a target, have you considered asking them to confirm the advice given? or perhaps even read your own copies of the report and documentation that gave the record of advice. Knowledge and facts are key in any complaint. At the moment, you appear to be lacking both. So, going to complaint seems very harsh and unnecessary at this stage when a simple reminder of the advice may show no problems. If it does show a problem then it actually makes a future complaint stronger as you have the information in front of you then.

_Andy_

Yes, you can claim everything back - not just your payments but the mortgage amount in full. Happy days - give the lender a call and they'll arrange the cheque to be sent within 7 days.

Annisele

_Andy_ I know you're being sarcastic but please don't - there are people who'll take that sort of post seriously.

I agree completely with dunstonh.

roonaldo

I dont understand where the mis-sale is. If house prices had gone up, would you be complaining? Its the state of the economy thats the issue, not your salesman.

Welcome to the world!

bodmil

Surely you were in negative equity from day one but didn't mind signing on the dotted line?

_Andy_

Who is this person Miss Sold?