Mis sold Mortgage

daveyb16

Hi everyone,

Just joined the MSE forums so go easy on me!


During the summer of 2009 at the age of 23 I decided to purchase my first property. After finding the house and identifying the price/deposit (115K purchase 10%deposit LTV) I began to chase a mortgage. Unfortunately I was not as savvy as I (think) I am today and did not know where to look.
I stupidly disclosed this to my seller who as she worked for Yorkshire bank recommended her colleague in the mortgages department at this bank. After speaking to this mortgage advisor and going through the process I ended up with a 5year mortgage interest only mortgage. (Not a five year offer period then 25years at x%. A five year TOTAL mortgage). Oh and it was fixed for three years at nearly 6%. My toes are curling telling you all this already.
I explained to the advisor at the time I had absolutely no payment vehicle in place to be able to clear the money owed to Yorkshire bank before the 5 year term ended. When the documents were issued the front page where there is the box with the statement *We recommend this product based on your circumstances (I cant remember the exact wording) this box was ticked.
I had a misunderstanding of what the ramifications of this were at the time and again I believe this is the fault of the advisor as I obviously did not understand what I was signing upto.


After THREE years of paying for this mortgage I decided I needed to get out of this awful product. However after scouring the market like I should have I encountered the problem of the property being valued lower than original purchase price and my efforts to switch compounded by two problems. A short fall in valuation and not a penny paid off the original mortgage value. My repayments a month had been £550! After finding a new lender (HSBC) I showed their advisor my mortgage. He was disgusted and said it was the worst piece of advice/lending he had ever seen.


My big question after all these years is simple. IS there anything at all I can do??? I tried to speak to Yorkshire bank but I was swiftly rebuffed saying 'lending regulations were not as strict then' surely that is not an acceptable answer?? I'd assume the lending to me would not pass a piece of regulation written on a piece of bog roll!


Thanks in advance and sorry for the war and peace length


Davey B

dunstonh

After speaking to this mortgage advisor and going through the process I ended up with a 5year mortgage interest only mortgage. (Not a five year offer period then 25years at x%. A five year TOTAL mortgage). Oh and it was fixed for three years at nearly 6%. My toes are curling telling you all this already.

That clearly is not right.

My repayments a month had been £550!

With your payments being much lower than they would be had you been on repayment mortgage, what have you been doing with that extra money? Saving it to reduce the mortgage when the deal ends? Making over payments to the mortgage? Or spending it?

My big question after all these years is simple. IS there anything at all I can do??? I tried to speak to Yorkshire bank but I was swiftly rebuffed saying 'lending regulations were not as strict then' surely that is not an acceptable answer??

As you have made a complaint and they have responded with the complaint outcome, the letter rejecting your complaint should tell you what you can do next if you disagree with their response. You get 6 months to refer your complaint to the financial ombudsman service.

If you never got the complaint outcome letter then it would suggest it never went to complaint. So, actually you have two complaints. 1) the mortgage issue and 2) when you went to them they brushed off your complaint without dealing with it correctly. The complaints response would be in writing if done correctly.

It should be noted that you are not likely to get much in the way, if any, redress for this. You are no worse off whether they mortgage had been set up with 5 years or 25 years. The monthly payments would be the same. The most likely outcome would be the mortgage being extended to a more suitable term which it should have been in the first place and a decent goodwill gesture for inconvenience.

ACG

A lot of the time I read "miss sold mortgage" on here my eyes roll to the back of my head.

However, having read yours I am wondering why/how you managed to get a 3 year fixed rate on a 5 year mortgage at the age of 23.

I am assuming your complaint was over the phone rather than in writing? Put your complaint in writing.

What did you want from your mortgage? Did you want interest only or repayment? How long did you want to do your mortgage over? 20 years? 25 years? 30 years? It could be worth asking them to alter your mortgage to a xx year term and on repayment as that could be enough to avoid the complaint going to the financial ombudsman.

JimmyTheWig

Have you now moved the mortgage to HSBC?

It sounds like your mortgage was completely and utterly mis-sold. But it also sounds like your losses were zero.

ACG

JimmyTheWig wrote: »

Have you now moved the mortgage to HSBC?

It sounds like your mortgage was completely and utterly mis-sold. But it also sounds like your losses were zero.

He could lose his house?

If it was a 5 year term in 2009, why have they not called in the loan? It has been 7 years.

Thrugelmir

daveyb16 wrote: »

Not a five year offer period then 25years at x%.

Perhaps that's because the product wasn't even offered by Yorkshire Bank.

muhandis

I don't have much to add to what has already been said - that this does look like it was mis-sold and that you should raise a formal written complaint complaining about both the advice and the fact that your earlier complaint was not treated properly. If they decline to do anything about it again and convey the same to you, you should go to the FOS.

In addition, I would tweet or direct message Martin and MSE on twitter linking to this thread. While he probably receives hundreds of requests for help everyday, this does appear to be quite different from the usual ones. It's a very long shot, but who knows he might assign someone at MSE to have a look at it.

I wish you luck!

daveyb16 wrote: »

Hi everyone,

Just joined the MSE forums so go easy on me!

During the summer of 2009 at the age of 23 I decided to purchase my first property. After finding the house and identifying the price/deposit (115K purchase 10%deposit LTV) I began to chase a mortgage. Unfortunately I was not as savvy as I (think) I am today and did not know where to look.
I stupidly disclosed this to my seller who as she worked for Yorkshire bank recommended her colleague in the mortgages department at this bank. After speaking to this mortgage advisor and going through the process I ended up with a 5year mortgage interest only mortgage. (Not a five year offer period then 25years at x%. A five year TOTAL mortgage). Oh and it was fixed for three years at nearly 6%. My toes are curling telling you all this already.
I explained to the advisor at the time I had absolutely no payment vehicle in place to be able to clear the money owed to Yorkshire bank before the 5 year term ended. When the documents were issued the front page where there is the box with the statement *We recommend this product based on your circumstances (I cant remember the exact wording) this box was ticked.
I had a misunderstanding of what the ramifications of this were at the time and again I believe this is the fault of the advisor as I obviously did not understand what I was signing upto.

After THREE years of paying for this mortgage I decided I needed to get out of this awful product. However after scouring the market like I should have I encountered the problem of the property being valued lower than original purchase price and my efforts to switch compounded by two problems. A short fall in valuation and not a penny paid off the original mortgage value. My repayments a month had been £550! After finding a new lender (HSBC) I showed their advisor my mortgage. He was disgusted and said it was the worst piece of advice/lending he had ever seen.

My big question after all these years is simple. IS there anything at all I can do??? I tried to speak to Yorkshire bank but I was swiftly rebuffed saying 'lending regulations were not as strict then' surely that is not an acceptable answer?? I'd assume the lending to me would not pass a piece of regulation written on a piece of bog roll!

Thanks in advance and sorry for the war and peace length

Davey B

JimmyTheWig

ACG wrote: »

He could lose his house?

If it was a 5 year term in 2009, why have they not called in the loan? It has been 7 years.

He _could have_ lost his house.
But if he now has a mortgage on the house with HSBC then, as it turns out, he may well not have lost anything.

dunstonh

There are some inconsistencies in the post.

A 5 year mortgage would have expired in 2014 and the lender demand payment then. So, how is the mortgage still going now?

If the deal was changed in year 3 that would be 2012. So, a complaint could be time-barred as it is more than 6 years from the purchase and more than 3 years from being aware of an issue.

So, I think we need some more clarification on the points raised so far.

daveyb16

Thanks for your replies everyone. Ill try to clarify some points.


I complained via walking into my local branch were the mortgage advisor was based who had arranged the mortgage. This was rebuffed by a different mortgage advisor explaining this particular advisor had left and that mortgage regulations were "different back then" I left slightly miffed.


I am in no way associated with this mortgage or bank anymore. As explained the mortgage was a 5 year mortgage. in hindsight, I wanted a traditional mortgage E.g repayment which after the offer rate switches to a bank rate until the mortgage is paid off. At the time I did not know this. I was a completely unsavvy 23year old. after the fixed three year period there were two years left. before the bank would ask for all the money back. Yes I could have switched to another product (which I did by moving to HSBC after the 3year fixed term) but had I not had 5K to stump up for the shortfall in repayments that had not gone on the house then I would have lost the house.


Because I didn't know for a considerable amount of time what the ramifications of my mortgage were I did not realise I needed to overpay on the mortgage. Yorkshire bank at the time offered many different products like all mainstream lenders. Even if this was the only product they had to offer. Surely that is not adequate justification for irresponsible lending of the product.


Thanks again everyone for your comments

Thrugelmir

daveyb16 wrote: »

I was a completely unsavvy 23year old.

That's not the lenders responsibility. You could have been married with 3 kids by then. You always had the option of not proceeding with the transaction. If you felt unsure. I'd be very surprised you could fully recollect the conversations you had 9 years ago word for word. It was your decision to accept the offer made to you. So that responsibility is yours to live with. Hindsight is a wonderful human invention. Like life generally. Learn from the experience and move on.