miss sold mortgage interest only

tvfreek

This jokey thread still running then.

I dare say if he manages to recoup the £40 last mentioned it should cover his time posting on here at mnimum wage levels.

There should be an aptitude test for mortgages.

silvercar

Lets play some numbers games.

But they have we borrowed 90,600 plus 995 broker fee under interest only 30 year mortgage this was in 2007

So I'm assuming your new mortgage is 91,595 interest only at about 8.5%, so your monthly payments are around £648.80

On your old repayment mortgage, lets assume your main mortgage was around 65,000 you had a secured loan of 10,000 another one of 5,000 and your window loan of 10,000. lets assume the mortgage rate was 8%, the secured loans both at 11% but over 5 years and the window loan was over 2 years.

secured loan
5,000 : Monthly repayments£107.42 Total amount repayable £6,445.42
10,000: Monthly repayments£214.85 Total amount repayable £12,890.85
mortgage: Monthly repayments £502 amount of capital cleared after 8 years £9,150 total repaid after 8 yrs (cap + interest) 48,192

window loan: Monthly repayments£463.67 Total amount repayable £11,128.20

So from 2007 to now, assuming 8 yrs, you would have paid on all your loans (interest + capital) £78,656 and your outstanding mortgage would be £55,850

Instead you have paid out in interest 62,285 have an outstanding interest only mortgage of £91,595.

So you have paid out £16,371 LESS but have a mortgage that is £35,745 MORE. So your net loss is 19,374.

Be aware that putting in actual values will change these figures a lot. It doesn't take much change in interest rates or the length of loans for big changes in the net result. And I have made so many assumptions that this really is an example rather than anything that you could take as an indication of a big fat wad of cash landing on your door.

It also assumes that the decision makers will put you back in the situation you were in before rather than put you in the position you were in had you taken the mortgage you thought you were getting.

If and it is a big if you get compensation, you should use it to address the large capital amount owed on your mortgage as that would really be putting it back into the situation you should now find yourself.

amnblog

Will the FCS take into account the fact that the mortgage does not appear to have been a problem for the OP the past for 8 years?

silvercar

It has been pointed out to me, that my post above may result inpeople thinking that OP (and indeed anyone reading) may think that a complaint would automatically lead to a cash bonanza. So that people don't get too excited I have reworked the figures, on equally likely assumptions, to show that a few percentage points difference, or a change in loan length could dramatically effect any calculation.

So read this with my post above and don't assume a complaint being accepted will automatically lead to a payout.

....

So I'm assuming your new mortgage is 91,595 interest only at about 7%, so your monthly payments are around £534

On your old repayment mortgage, lets assume your main mortgage was around 65,000 you had a secured loan of 10,000 another one of 5,000 and your window loan of 10,000. lets assume the mortgage rate was 8%, the secured loans both at 13% but over 8 years and the window loan was 22% over 5 years.

secured loan
5,000 : Monthly repayments£82 Total amount repayable £7676
10,000: Monthly repayments£164 Total amount repayable £15,352
mortgage: Monthly repayments £502 amount of capital cleared after 8 years £9,150 total repaid after 8 yrs (cap + interest) 48,192

window loan: Monthly repayments£265 Total amount repayable £15,913

So from 2007 to now, assuming 8 yrs, you would have paid on all your loans (interest + capital) £87,133 and your outstanding mortgage would be £55,850

Instead you have paid out in interest 51,264 have an outstanding interest only mortgage of £91,595.

So you have paid out £35,869 LESS but have a mortgage that is £35,745 MORE. So your net gain was £124. Entitling you to no compensation.