Repossession blunder

teeni

The comments are very harsh, did your mother sign a blank form and then the rest completed after by the broker, i have seen Quite a few of these and helped challenge them through to ombudsman. With self certified mortgages there was no verification of the info provided, Often the loans were reduced payments for the first 2 years, then increased ridiculously to unaffordable repayments after this time. Of course by then the brokers have their money and no one thinks of their involvement in the original loan.


Now not saying this is the case here but elderly people were targeted. Perhaps questions about, how she became involved with the agent, what she actually signed and what info she was asked to provide may lead to a case against the broker for compensation.


Not that it will get her home back but if she didn't collude it may get her some compensation for her loss. also who did the conveyancing on the mortgage, surly they should have picked up it was a residential and not a buy to let mortgage required is there some redress available there

p00hsticks

teeni wrote: »

Now not saying this is the case here but elderly people were targeted.

The OP's mother is only 61 now and remortgaged seven years ago - so she's by no means elderly

CookieBaker

Thank you,
We need to ask mum further questions. Your helpful reply will point us in the right direction.
Thanks again

[Deleted User]

I'd be a bit careful with this as already advised. Unless your mum is confused etc, I suspect that she must have known there was something dodgy about the mortgage. She must have known she didn't have enough income to pay the mortgage repayments.

I'm not sure why you are pursuing this? She received a mortgage based on false income information, she lost the house in the end because she couldn't afford it.

But unless you are involved in some way.., I can't see the point in going over and over the situation. I would imagine your mother can no longer apply for a mortgage so there's no chance of repeat behaviour. She's lost everything she had. Surely that's enough? What will raking it all up again achieve? Do you want your mother prosecuted for fraud?

I hope you will think this through.

CookieBaker

thanks for your concern.

We find this whole situation a little strange, if she wants to complain as a family we will support her, there is always potential consequence. If this is what she wants then we will do our upmost to gain as much info' as possible to help her along.

JencParker

CookieBaker wrote: »

Any advice?

Hi all,

My now 61-year-old mother re-mortgaged her £140, 000 home to purchase a BTL property in 2008.
All was granted, however late 2011 she experienced financial loss and difficulty, in 2012 she lost the BTL house to repossession, thankfully there was a surplus so she received a small payout (£7000), which helped with her situation.
Unfortunately, finances never recovered so her residing home was repossessed in 2013.
Since then we have appealed to the Broker (Bluefin Insurance) to shed some light on the repossession order on her residential home, our findings revealed that;

Both homes were mortgaged as BTL (Which was not what she applied for)
She allegedly had an Isa of £97,500 (which she has never had)
Earned £25,000 per year with a company she has never worked for.

Infuriated and frustrated we asked for proof of these claims, documentation or something, as this information is false. The Brokers could not give us the info’ of documentation simply because it does not exist.

We started a complaint with the financial ombudsman (March 2015), and they are taking sides with the Broker firm and do not see anything wrong with the Brokers procedure and conduct.
Is this behaviour allowed? We have no idea what to do next. She has nothing.

Sorry, to sound stupid, but if the BTL mortgage was paid off with a surplus of £7000 why was her home repossessed? Did she not own the home she mortgaged for the btl outright?

xHannahx

What was secured against the BTL property if she remortgaged her residential property to purchase it?
Why would she need the mortgage if she had 95k sitting in an isa?
Try a DSAR to the mortgage companies rather than the broker? The mortgage companies although innocent in the sale, will likely have copies of the sale documents and application forms.
BTL typically had lower lending criteria but were more expensive. Lending on BTL was often based on the earnings the property would make rather than the borrower. This resulted in brokers taking people down the BTL route to get round affordability.
I'm guessing interest only products involved or the ISA wouldn't be relevant. She may not have had an ISA at the time but filled the forms to say she would get one and save required amounts to save the amount over the term of the mortgage (if interest only and repayment vehicle requested).
I would be very careful what you do with this though, as taking it further is likely to incriminate your mother for mortgage fraud if your original post is accurate and your mother isn't just keeping those bits from you regarding income and savings.