Mis-selling of mortgage?

gw23

She's paid off about £3000 of the mortgage. What she's been doing with her money is living from day-to-day, she's now a pensioner.

As I've already said, the broker told her the insurance could be cancelled, and with all due respect, not many people tape every conversation they have.

It was because of the letter she got from the Halifax that she is now trying to work out the best way forward and we are just trying to support her. She hasn't ignored it.

getmore4less

Paying interest only is renting(money)

if it was cheaper than renting then that was a choice not a missell.


what's the place worth now

there is always the sell option.

getmore4less

When was she expecting to own the place?


The divorce and insurance are not really relevant.

any intelligent person would know that £450 would have only been paying the interest at around 5.5%

dunstonh

As I've already said, the broker told her the insurance could be cancelled, and with all due respect, not many people tape every conversation they have.

And the broker doesnt exist any more and whilst they may have said that, they may not have. Or it may have been said in another context (e.g. it can be cancelled without the lender calling in the debt. Technically correct but doesnt mean it is the right thing to do). That is all irrelevant though as no evidence exists and nor does the broker.

densol_2

I don't see this as miss selling. The lady was complicit in a situation whereby sadly due to divorce she couldn't really afford to "buy" a property correctly - so did what she could in the circumstances. The reality of the situation is now catching up and would be no different to have rented all that time ( probs in fact much cheaper due to interest rates ) and maybe an increase in value as well.

ACG

She has paid less than it would have cost in rent, she has benefited from an increase in value. She could not afford a repayment mortgage.

Having an interest only mortgage in itself is not a miss sale and I really cant see this getting anywhere to be honest.

kingstreet

Did the advisor document the choice of interest only and why it met the borrower's needs?

kingstreet

If an advisor "sells" interest only they have to justify why and how the mortgage will be repaid.

Sale of the purchase property is an acceptable repayment vehicle if the client agrees.

haras_nosirrah

Maybe before claiming misselling your friend should work out the following equation

Rent value of current property x number of years lived there - mortgage payments made over the number of years lived in the property - the equity increase over time

E.g if it would have cost her 650 to rent the place and she has been paying £450 mortgage then she is £200 a month better off x 10 years + any increase in value of property since she moved in which judging by the dates may be a considerable amount

I am prepared to bet this 'missale' has made her much better off than if she had rented a grotty bedsit for the last 10 years

Dave_Ham

I think you and your friend need to establish what you are hoping to achieve.


Halifax may be sympathetic to a minor term extension, or may want to consider if any of the children are now of working age to put them onto any future mortgage for the property.


Concentrate on looking forward, personally I hate any blame culture or mis-sale accusations as many have already pointed out.