HELP...Have my parents MTG been mis-sold

BECSTAR07

I am new to this but am in DESPERATE need of some advice on a product that I feel has been completely mis-sold to my parents. Approx 20 years ago they took out a Woolwich offset reserve mortgage.... this meant that running alongside there current account was a HUGE overdraft/reserve of £117,000 which was there for them to use as the wish, home improvements holidays etc. As they repay their mortgage this reserve pot comes down, currently their limit is 90k.My dad is and has always been a very hard worker on an average salary of £2500 a month.. they have never had extravagant holidays or posh cars they do not smoke gamble or drink, they simply have had more outgoings than incoming....... Over the years for many reasons my parents have fallen deeply into this reserve gradually from 25k o/d to 45k o/d currently sitting at 65k o/d against their reserve of 90k. My dads salary goes into this account but they are continuously living out of their overdraft/reserve paying mtgs bills etc, This is clear for Barclays to see. My issues are HOW CAN THIS BE ALLOWED WITHOUT ANY BUDGET REVIEW TO CHECK THAT MY DAD WHO WAS CLEARLY BURRYING HIS HEAD IN THE SAND CAN AFFORD TO REPAY THIS... Surely this is irresponsible lending by Woolwich/Barclays. I cannot increase a customers overdraft by £50.00 without running through a budget planner and full credit check? In three years time when their mortgage is repaid my parents will still be left with this huge reserve overdraft of 65k+. Surely like with the Interest free mortgages the lenders must have proof that a vehicle repayment plan is in place to repay this reserve off? I AM LOOKING FOR SOME ADVICE AS TO WHETHER THEY MAY HAVE GROUNDS TO COMPLAIN FOR BEING IRRESPONSIBLY ALLOWED FOR OVER 20 YEARS TO FALL MORE IN DEBT WITHOUT BEING CALLED IN FOR A FINANCIAL REVIEW?? I have today spoken to the FCA who told me to write to Barclays but I do not want to make my parents situation any worse for them....pls help x

Southend1

BECSTAR07 wrote: »

I am new to this but am in DESPERATE need of some advice on a product that I feel has been completely mis-sold to my parents. Approx 20 years ago they took out a Woolwich offset reserve mortgage.... this meant that running alongside there current account was a HUGE overdraft/reserve of £117,000 which was there for them to use as the wish, home improvements holidays etc. As they repay their mortgage this reserve pot comes down, currently their limit is 90k.My dad is and has always been a very hard worker on an average salary of £2500 a month.. they have never had extravagant holidays or posh cars they do not smoke gamble or drink, they simply have had more outgoings than incoming....... Over the years for many reasons my parents have fallen deeply into this reserve gradually from 25k o/d to 45k o/d currently sitting at 65k o/d against their reserve of 90k. My dads salary goes into this account but they are continuously living out of their overdraft/reserve paying mtgs bills etc, This is clear for Barclays to see. My issues are HOW CAN THIS BE ALLOWED WITHOUT ANY BUDGET REVIEW TO CHECK THAT MY DAD WHO WAS CLEARLY BURRYING HIS HEAD IN THE SAND CAN AFFORD TO REPAY THIS... Surely this is irresponsible lending by Woolwich/Barclays. I cannot increase a customers overdraft by £50.00 without running through a budget planner and full credit check? In three years time when their mortgage is repaid my parents will still be left with this huge reserve overdraft of 65k+. Surely like with the Interest free mortgages the lenders must have proof that a vehicle repayment plan is in place to repay this reserve off? I AM LOOKING FOR SOME ADVICE AS TO WHETHER THEY MAY HAVE GROUNDS TO COMPLAIN FOR BEING IRRESPONSIBLY ALLOWED FOR OVER 20 YEARS TO FALL MORE IN DEBT WITHOUT BEING CALLED IN FOR A FINANCIAL REVIEW?? I have today spoken to the FCA who told me to write to Barclays but I do not want to make my parents situation any worse for them....pls help x

Sorry but it sounds like irresponsible spending is the problem here, not irresponsible lending.

amnblog

Bank offers lending, borrowers take lending.


You may be frustrated but this will all have been signed for and agreed by your parents.


I suspect this wont stop you putting a complaint in - this action wont makes your parents situation worse, I would be very surprised if it makes it better.

Faith177

Barclays gave your mum & dad the facility. Your dad chose to use it Barclays didn't force him too

What did they use the money for?

When I set up the same mortgage they explained to me in depth how it worked and what it involved and I made the decision not to add to my debt and have never touched it and dont intend too

BECSTAR07

.....Hmmmmm. But how on earth they were allowed to have such a high mortgage with such a high overdraft available for them to use. And also why for over 20 years on a monthly income of 2500.00 they were not called in for a financial review or even had their reserve limit capped to prevent them from going further into debt...It is down to the banks to lend sensibly but we know back then they didn't!... therefor surely the banks at are fault if my parents are now unable to repay this....as the banks are at fault for not making sure that customer with interest free mortgages have suitable repayment vehicles?

BECSTAR07

and thanks for the post but when people are in debt they are forced to borrow.....hence why people turn to pay day lenders etc.... They have been challenged for their irresponsible lending...

TrickyDicky101

Do you think your parents should shoulder any of the responsibility for spending beyond their means?

amnblog

To be fair it is not the lenders fault if a householder spends more each month than they have coming in.


Most householder's who do this, do it on credit cards and personal or secured loans which are more expensive than a mortgage reserve.

BECSTAR07

I agree but to take a credit card and loan out you would be credit searched and as I keep saying would sit through a full budget financial review.
If you wanted to increase your limits again and borrow more you would need a second credit search and review... this has been overlooked completely!...Thanks for your help AMNBLOG...I will still forward a letter of compliant in and see what they say. I work for a bank as mentioned earlier and we have been made to compensate for less.

BECSTAR07

TrickyDicky101 wrote: »

Do you think your parents should shoulder any of the responsibility for spending beyond their means?

I think your missing my point! Maybe you would be better sitting in an audience FOR JEREMY KYLE instead of joining into conversations and offering so little........my advice to you :-)

Tim_Bisley

BECSTAR07 wrote: »

I think your missing my point! Maybe you would be better sitting in an audience FOR JEREMY KYLE instead of joining into conversations and offering so little........my advice to you :-)

Harsh response to a valid question. No-one put a gun to their head and made them overspend by £65k.