pension Mortgage

ziggyzag_2

my husband and I were sold a pension Mortgage. now we are coming to the end of the mortgage term there is no way that the pension will cover the mortgage, Do we have any recourse for bad advise, no one has been in contact with us to check if the pension payments need to be increased, the pension payment just increased a little each year............... also are there and templates that I can use to see if I have a claim against the seller of these items?

opinions4u

You won't get anything out of a complaint for poor investment performance.

Why do you think the advice given was inappropriate?

dunstonh

now we are coming to the end of the mortgage term there is no way that the pension will cover the mortgage

You would have known for at least 13 years that it was falling short. So, what action have you taken to address the shortfall?

Do we have any recourse for bad advise, no one has been in contact with us to check if the pension payments need to be increased, the pension payment just increased a little each year.

Have you employed anyone to do those reviews?

also are there and templates that I can use to see if I have a claim against the seller of these items?

You wouldnt use a template letter on something like this as its not the sort of thing that a template could cover. It is a very specific individual complaint.

As O4U says above, performance or lack of, it not grounds for complaint. The original recommendation being unsuitable is. So, what would be your reasons for complaint?

Conrad

ziggyzag wrote: »

my husband and I were sold a pension Mortgage. now we are coming to the end of the mortgage term there is no way that the pension will cover the mortgage, Do we have any recourse for bad advise, no one has been in contact with us to check if the pension payments need to be increased, the pension payment just increased a little each year............... also are there and templates that I can use to see if I have a claim against the seller of these items?

In the past a lot of profit centric outfits flogged pensions with very high charges and commissions. These included the likes of Abbey life, Sun life, General Portfolio and Allied Dunbar.

Depending on when it was sold these companies often had abysmal sales process's and as such one can claim a mis-selling case.

Step one would be to complain to the pension provider, claiming you were not made aware there were much lower charging pensions available, that you weren't aware of the risks involved at the time. However, if the provider has reasonable charges you might struggle. I cannot say if you will succeed, there are many variables to consider and we have little to go on.

dunstonh

Step one would be to complain to the pension provider, claiming you were not made aware there were much lower charging pensions available,

The requirement to benchmark using rule RU64 came about in 2001 (although it was used for a couple of years in the lead up). So, if the sale was prior to say 1999, then there was no such rule in place that required them to benchmark to stakeholder.

I would have step 1 as finding out the status of the person that sold it. i.e. insurance company agent, accountant, solicitor, IFA etc. In the case of some of those, the liability for the complaint is not with the insurance company but the seller. So, a complaint to the insurer wont achieve anything with those.

It is quite easy to get pension mortgages classed as mis-sales as they were a good idea that was suitable for a minority but were overused (often by the sales forces as Conrad said). The lack of documentation that some firms have can very easily make a complaint upheld even if everything was done right at the time.

Let_Us_See

I don't think the OP question revolves around pension performance, but whether the mortgage adviser, who I assume recommended an interest only mortgage with a pension as a repayment vehicle, actually investigated whether or not the client's pension pot would grow sufficiently for the tax free lump sum to repay the capital.

A mortgage adviser can't simply recommend an IO mortgage with a proposed pension as a repayment vehicle without making adequate checks. The adviser's Suitability Letter or Reasons Why Letter should have confirmed why an interest only mortgage was recommended, plus the suitability of the pension to repay the capital.

At the time of taking out the mortgage was there sufficient pension information available for the adviser to make such a recommendation? If not, then you may well have a claim against the adviser.

Before making a claim check the paper work and review the reasons why such a mortgage was recommended.