Mis-sold mortgage claims

dunstonh

I suppose I was wondering if it may have been possible for a broker to have advised us to take out an IO mortgage at a rate that would earn him better commission and was not necessarily the best rate for us.

No difference in commission between interest only and repayment mortgages. High street lenders paid commissions that were very similar to each other. The main area of concern that does exist is where people used sub prime lenders when prime or near prime lenders could have been used. They did pay bigger commissions. However, neither of your lenders fit that.

However, if I am a customer, uncertain of my position in the financial arena, I'm not likely to look to acquire the services of a professional that might end up suing me!!!

Although a professional is unlikely to want to offer services to a consumer that is trying to defraud them

saver861

febmumof2 wrote: »

I suppose I was wondering if it may have been possible for a broker to have advised us to take out an IO mortgage at a rate that would earn him better commission and was not necessarily the best rate for us.

Thanks again for the comments

Many years ago we took out a mortgage and went with the advice of the broker - which was interest only. However when I looked further into it, I did find that there was better deals for our circumstances than they were recommending.

I don't remember all the detail but we did take it up with the brokers had a meeting about it. We remained with the recommended firm but the brokers reimbursed us with the commission they would have earned on the deal as a means of recompense.

I don't think it would go down as mis-selling but the brokers were recommended to us by our long standing solicitor. Perhaps they relinquished more in embarrassment than any legal requirement. It was back in the day before they had to declare their commission and all of that.

shortchanged_2

saver861 wrote: »

Many years ago we took out a mortgage and went with the advice of the broker - which was interest only. However when I looked further into it, I did find that there was better deals for our circumstances than they were recommending.

This goes on all the time with things like insurance. How many times do people get a high quote only to get it lower if they shop around.

The problem is where do you draw the line? At the end of the day businesses are out there to maximise profits.

Where will it end? People trying to reclaim money back on an item they bought that is now being offered at a cheaper price. These compensation claims are now starting to take the mickey.

saver861

dunstonh wrote: »

Although a professional is unlikely to want to offer services to a consumer that is trying to defraud them

Indeed - and one would not expect them to. So any consumer asking a broker to try to flex the rules - then show them the door! Clearly, one would not expect any brokers to flex or entice consumers to be less than candid with their applications so that the mortgage would go through successfully, ensuring the commission for the broker!

shortchanged wrote: »

This goes on all the time with things like insurance. How many times do people get a high quote only to get it lower if they shop around.

The problem is where do you draw the line? At the end of the day businesses are out there to maximise profits.

Where will it end? People trying to reclaim money back on an item they bought that is now being offered at a cheaper price. These compensation claims are now starting to take the mickey.

No - I dont think it is. Put another way, if it had not been addressed, banks etc would still be flogging these products and maybe to an even greater degree of mis-sale.

There is a difference between mis-selling and paying different prices for the same product. Eggs at Tesco's for £1 but £1.20 at Asda does not in any way mean Asda is mis-selling.

Business are there to make money - otherwise they wont be there! The consumer has to be protected against any business attempting to gain profit by less than transparent methods. That's simply the difference.

magpiecottage

saver861 wrote: »

There is a difference between mis-selling and paying different prices for the same product. Eggs at Tesco's for £1 but £1.20 at Asda does not in any way mean Asda is mis-selling.

I agree.

On the other hand, if the customer thinks he can then come back and pinch another egg from Asda because Tesco sell hald a dozen for a pound it is still theft and, ultimately, the cost of such "shrinkage" is passed on to honest customers.

saver861

magpiecottage wrote: »

I agree.

On the other hand, if the customer thinks he can then come back and pinch another egg from Asda because Tesco sell hald a dozen for a pound it is still theft and, ultimately, the cost of such "shrinkage" is passed on to honest customers.

Yes - ultimately all of these costs are pushed back to the consumer somehow or other in these situations.

However, there still has to be some guidance for the consumer. Purely for the purposes of example, Asda might choose to charge £50 for their eggs - their choice and not against the law. You might say nobody is going to buy them at that price, but for Mrs Smith unable to get to any other supermarket, might thus be obliged to buy at that price.... the real world actual equivalent being loan sharks and their extortionate rates!

So while Joe Bloggs might indeed try it on to get something back he is not entitled to, in relative terms, the amount the banks etc have made illegally from PPI is extortionate in relation to amount of try it on claims.