Question on Sub Prime Morgages

edited 30 November -1 at 1:00AM in Reclaiming Mortgage Fees, Council Tax, etc
3 replies 739 views
Percy_NicholsonPercy_Nicholson Forumite
1 Post
Hi,

I have received a letter from a company saying i could be entitled to some compensation as i was given a mortgage from a broker from 'resolved claims' to go through with this and see if i am entitled is a no win no fee, but if i do win they take 25% plus VAT. Can you tell me if this is all legit or if there is a company anywhere that takes less of a cut!
Thanks in advance

Replies

  • roonaldoroonaldo Forumite
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    Did you have bad credit in the past? if so then it would be correct you had a sub-prime mortgage.
    They are trying it on.
  • BrokerwiseBrokerwise Forumite
    177 Posts
    Hi,

    I have received a letter from a company saying i could be entitled to some compensation as i was given a mortgage from a broker from 'resolved claims' to go through with this and see if i am entitled is a no win no fee, but if i do win they take 25% plus VAT. Can you tell me if this is all legit or if there is a company anywhere that takes less of a cut!
    Thanks in advance
    It is a scam - they do not have access to your records and it is a fishing exercise.
  • dunstonhdunstonh Forumite
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    Did you have issues that required the use of a sub-prime mortgage?

    Claims companies cannot access your personal info. However, the name of your lender is in the public domain. So, what typically happens is that the claims company will look for subprime lenders and try-it-on.

    If you have a valid reason for complaint (such as being recommended a sub-prime mortgage when prime was available to you) then you can complain using the free of charge complaints process. You would complain to the broker, not the lender. The broker would still need to be in business and the mortgage taken out after October 2004. As most brokers are small local firms, rather than jumping to complaint, you could just ask the broker to remind you why a sub-prime mortgage was recommended (if you cant remember).

    Sub prime tended to be used where you were pushing limits significantly (or even self cert) and/or had bad credit history.
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