Mis-sold a repayment mortgage???

LEXXY_LOU

I wonder if anyone else is in the same situation as me???
In january of this year we remortgaged our house to pay of a loan we took out for a car (hug mistake) anyway we contacted a company who sent along someone who is regulated by AXA, we told him the story & informed him we would like to have the mortgage over as long as possible to keep the payments down as i was pregnant at the time & due to loose a wage so we left it in his hands. We also told him we had been a little late in opaying some bills but all upto date he then replied we must take a sub prime mortgage again we went with the flow. So to make a long story short lol!!!
When the baby arrived in April we started to struggle & enq with the broker what to do the said contact the lender so we have & were told we can go on int only 4 6 months & they cant extend the term to (the extra 6yrs we couldof had) because now we are in negative equity due to higher lending charges applied to our account??? I only wanted to pay my loan not loose sleep every night!!!
does anyone know if i can complain??? im scared to i dont want to loose my house but he has ruined our lives

thanks 4 listening

dunstonh

who sent along someone who is regulated by AXA

No. The rep worked for/represented AXA. AXA are an insurance company. AXA are regulated by the financial services authority.

does anyone know if i can complain???

About what? From what you have said the adviser has done nothing wrong.

I dont mean to sound harsh here but you approached them to do this transaction. There would have been a key features illustration issued confirming costs of set up and the monthly repayments. This would have been followed up by the mortgage offer letter which you take to the solicitor to sign (unless you chose not to) and the solicitor confirms the costs and terms before you sign it.

So, unless the adviser has broken any rules from a technical point of view, there has been no rule breach. The responsibility to meet the payments is yours.

So, what has the adviser done wrong in your eyes that you feel you can complain about?

regularsaver1

I am also failing to see what the adviser did wrong - he got you the mortgage you asked for

the financial difficulties in April have nothing to do with the adviser?? When you signed for the mortgage , you knew the monthly commitments

what is it you feel was done wrong?

MarkyMarkD

The heading for this thread is not helpful either. The fact that it was a repayment mortgage is neither here nor there. The issue is whether the OP was mis-sold a mortgage.

Given that the OP has started to struggle a few months into this new mortgage, and the fact that the remortgage was to consolidate a previous mis-guided personal loan, it doesn't sound like anything's been mis-sold.

Except that maybe the OP should have sold the car and bought a cheaper one, instead of remortgaging for what sound like dubious reasons.

Moving from prime to sub-prime simply to consolidate a relatively small amount of debt is rarely a money-saving strategy.

LEXXY_LOU

Sorry if i provided too much info just usualy they are about mis sold endownments anyway, I understand that i have the responsibility to meet the repayments i know that but my issues are:-
why wasnt i offered 35yrs i was told the max was 29?
i wasnt told fully about the fact that we would be in negative equity as the "fees" he called them were added onto the loan and now we cant change nything on the mortgage.
we did sell the car but because the finance was arranged through the garage we still owed money on top of that, were not talking a merc it was a corsa.
but still confussed about the sub-prime bit, it did go through with the royal bank of scotland but because he handed the paper work in late or something we had to go for this sub prime thing because we didnt have to be checke again? then he changed te amount & said we shoould get as much as we could taking us upto 100% if he had said but this means blah blah blah i would have said no, i just feel miss guided n very untrusting now.

regularsaver1

What are your ages? this could have explain why he could not do 35 years, as this may take you into retirement? There may be a reason

LEXXY_LOU

i was 23 and my husband was 28, when we checked with the lender last week they said 35yrs was not a problem and they would have offered that for us, sorry i ment to say ref dunstonh's comment we didnt deal with the solicitors he siad his friend (who was a solicitor) would deal with it all n get it through quicker as we were going to use our own

dunstonh

why wasnt i offered 35yrs i was told the max was 29?

You arent going to be able to prove that. 29 is funny term to choose. Perhaps it was matching what you budgeted for the repayment.

i wasnt told fully about the fact that we would be in negative equity as the "fees" he called them were added onto the loan and now we cant change nything on the mortgage.

The fees arent going to make that much of a difference though. Plus, you are given the information multiple times and you sign multiple times on different dates to confirm you still want to go ahead (KFI issued, application signed. Then offer letter issued and signed). Whilst the adviser can do many things, there has to be a minimum expectation that you read the key things like how much are you borrowing and how much you will be repaying.

i would have said no, i just feel miss guided n very untrusting now.

Going to a tied agent didn't help you as that may well of limited your options. However, there hasnt been anything presented by you to show a mis-sale occured.

When you reschedule a debt, the aim is to make the repayments affordable but not make the term so long that you end up paying bucket loads more than had you left it where it was.

I'm going to be a bit blunt here. I think you need straight talking and not cuddly messages of sympathy. So, dont take my commenting style personal. Its just short, sweet and to the point.

To get into financial problems in April after reschuduling your loans in January suggests a bigger problem or issue. Can you answer the following to help us understand the position before and after.

Did you tell the adviser about all your debts?
Were you truthful about the income position?
What was your monthly payment for mortgage and car loan before the rescheduling?
What were the monthly payments afterwards?
How much extra did you borrow on the mortgage?

mooncat7

why wasnt i offered 35yrs i was told the max was 29?

Very good question, it seems if you have asked for the maximum term available then that is what you should receive.

Also the fact that you had a mortgage arranges with the Bank of Scotland, which didn't go through because your broker submitted your paperwork late, is a real issue. Incompetance from your Broker is not a good enough reason to provide a sub prime mortgage instead, with much larger procuration fees for him by the way.

It seems to me as a qualified mortgage adviser, and financial adviser, there are alot of people on here replying to threads who automatically presume no wrong doing on the behalf of other brokers/IFA's.

I am sorry to report that a very large amount of people have been mis-sold mortgages, either being provided sub prime mortgages where high street deals were available, or being instructed to inflate their income on self cert 'liar loans', or any number of reasons.

Just because the client signed a peice of paper agreeing to the terms doesn't mean there was no wrong doing by the broker. Far from it, cases in front of the Ombudsman at the moment are proving this and the amount is only going to grow.

You received a KFI and didn't choose to read it is no longer an excuse. What happen to 'treating customers fairly' or 'suitable advice'. These are terms we are going to hear alot more in the future believe me. And those brokers/IFA's and Lenders who don't recognise this are deluding themselves!

To get back to the original point. I would seek advice on taking your case in front of the Ombudsman. If you had a mortgage in place with Bank of Scotland, but then were supplied a sub prime deal with all the fees associated with it, I would guess you have a reasonable case for this particular broker to answer to!

_Andy_

Why drag up a thread from 2007?

Wutang_2

_Andy_ wrote: »

Why drag up a thread from 2007?

I am looking forward to NewRecruit's essay next....