mis sold mortgage

paul24959122

hi everybody this is my first time on here and I am looking for a bit of advice. I am thinking about making a claim for a mis sold mortgage that my broker brokered for me back in 2006 the problems with it are


they sold me a self certified mortgage
they put me on a interest only mortgage
they added ppi to it with out my knowledge
they valued the house at a much higher price than it was worth so I was into negative equity straight away


I know I was very naïve taking this out but the advisor was telling me it was the best thing to do I was working at the time and could of proved my income but the broker said to go self certified because I received commission on top of my wage. as a result of this I lost my house payments were much higher than originally. this is just a brief explanation of what happened any advice would be appreciated

Thrugelmir

So "they" were responsible for everything. You didn't object or question anything, and were happy to sign the forms put in front of you without reading them.

paul24959122

I did sign everything but obviously I took the advise of my advisor I am no mathematician and as far as I am concearned they were doing right by me the customer. I don't know should I of known everything I am no a mortgage advisor

betmunch

Just quickly to cover your points.


A self certified mortgage doesn't mean it was mis-sold
Interest Only doesn't mean it was mis-sold
Adding PPI to the mortgage is worth investigating (IMHO)
Valuing the house higher doesn't mean it was mis-sold.


There will have been reasons why you had a self cert, interest only mortgage and the value is given by a professional surveyor.


You should get out your documents and see if there is a reasons why letter in there, that should remind you why you had interest only and self cert.


The higher value could be a negligence claim against the surveyor, but probably only for the lender, unless you have a homebuyer report rather than a basic survey.

tomo21217

As mentioned above.

value of property wouldn't be to do with broker, it would have had a independent valuer, value the property. You couldnt put a claim against the valuer as the contract is between teh valuer and lender, evn though you pay for it. This may have been the property falling in value, as they can only value it on a day in isolation, it could be that it fell in value after you bought it.

PPI - you may have a claim if you were not told about it. Investigate.

Interest only mortgage - is what it says it is, there has been some talk recently about could these have been mis sold, but they are fairly simple for even a non financially literate person to understand and I believe that, the banks feel these cant be mis sold.

andyfromotley

In what way do you feel having an interest only mortgage disadvantaged you?

I'm fairly certain that by 2006 advisors were keeping quite thorough notes on the advice given and instructions/choices made by clients. Those notes should make interesting reading as to whether you were naive or are just claiming that after the fact.

andyfromotley

Oh and I'm not quite clear as to why any of this led to you losing your house. At what point did you realise that your payments were higher than you expected. Why was this a surprise? By how much higher were they?

haras_nosirrah

If you couldn't afford interest only I am curious as to how you would have been able to afford repayment and therefore why you feel interest only is a point of missale

dunstonh

as a result of this I lost my house payments were much higher than originally.

I dont get that. Can you explain it more as mortgage payments go up and down over the years naturally. Payments going up and becoming unaffordable could see you lose your house but you say the application process led to that.

The only thing I see here that may have legs is the PPI being added to the mortgage part. Monthly premium MPPI is how it should be set up. Most single premium added to debt PPI is ruled as bad advice.

You should also note that if you put in a complaint of mis-sale on a self cert mortgage, you are also acknowledging that you committed mortgage fraud IF the information you gave was not correct. There is a blacklist shared by lenders for people that commit mortgage fraud. It takes two to tango with mortgage fraud. So, even if you do have a case and the broker did wrong for you, the problem is that it could backfire on you too. If you knowingly did these things, then it may be better to accept it and not make the same mistake again.

Leon_W

I've read these boards for many years and I don't think I've ever read a "miss sold mortgage" thread that has had any merit. I distinctly remember a point in time where, in some circumstances, a self cert mortgage was a cheaper recommendation for the client than a full status loan !


The Interest Only aspect is just a red herring. It would have to be an extremely stupid person indeed not to know the difference between the two (ie:repayment) and if they weren't happy with that in the first place then why take it ? The broker certainly wouldn't be bothered either way as there is no reason not to give the client what they actually want.

jayymck

Hi, I am in the middle of selling my house and my mortgage company as told me I cant move my mortgage to the new house I have to clear it first and start a application for a new mortgage, which I have done, they have now come back to me and declined the mortgage due to affordability. To put you in the picture In have a deposit of £176000 and looking to borrow £40000. I have one missed mortgage payment in June 2014 on my credit file that's it. which was cleared Aug 2014. now my income as not changed since I got the mortgage. so was I mis sold my mortgage back in 2007 I was selling my house and buying a new one. my sell fell thought leaving me with two houses. one with a mortgage of £75000 and new one £306000 which I was told I had to take at my rate which was 6.9. now if I could afford £381000 in 2007 why cant I afford £40000 in 2015. I feel I was forced to take it at a high rate and also checks where not made into afford affordability.