Mis sold Accord Mortgage

Kazab33

Hi. I'm hoping for some advice as I'm not sure if I have a case to reclaim. I took out a mortgage for £190k in 2007 with my father. His name was on the mortgage instead of my husbands so we could borrow more (my father earned substantially more than myself or my husband). We took out an interest only mortgage but were not advised of the need to have something in place to pay at the end of the 10 year mortgage term nor that we should switch to a repayment at any stage - does this constitute mis-sold? Anyway, the property market crashed and we sold our property in 2013 for £89k, still owing the full amount, more including fees. The mortgage company allowed us to sell and agreed that they would accept a payment of £45k in addition to the £89k to settle the account. At the time we thought this was a fantastic way out of the mess we were in but now I'm not so sure. We took out loans, credit cards and sold our car to raise the £45k. 4 years on we are still trying to pay the majority of it off as we still owe £23k to various creditors due to interest etc. I've heard all kinds of stories from people who have managed to re-claim for being mis-sold or have managed to negotiate a much better deal in terms of a settlement figure given the lenders are insured. Any advice if I have anywhere to go? Thanks

dunstonh

Missold mortgages are not common. I was at a FOS meeting last year and they said they don't uphold many as in the majority of cases, the person is still better off than had they been renting.

We took out an interest only mortgage but were not advised of the need to have something in place to pay at the end of the 10 year mortgage term nor that we should switch to a repayment at any stage - does this constitute mis-sold?

No. It was not mis-sold.

1 - The key features illustration is fairly standardised and set the regulator. On there is would clearly state that you are paying interest only and that you should have a repayment plan.
2 - your solicitor, if you used one - i say that as many bypass this stage nowadays - would read the contract to you and explain the risks.
3 - Your mortgage broker would also tell you.
4 - There is also a clue in the name "interest only".

Anyway, the property market crashed and we sold our property in 2013 for £89k, still owing the full amount, more including fees.

When did the property market crash?

The mortgage company allowed us to sell and agreed that they would accept a payment of £45k in addition to the £89k to settle the account. At the time we thought this was a fantastic way out of the mess we were in but now I'm not so sure.

its a bit late now as you barred from any action under the 3/6 year rule. You have to raise a complaint within 6 years of the transaction (the purchase of the mortgage) and be within 3 years of knowing there is an issue. Both those periods have gone.

I've heard all kinds of stories from people who have managed to re-claim for being mis-sold

The complaints figures on mortgages and the FOS position does not support that point of view.

or have managed to negotiate a much better deal in terms of a settlement figure given the lenders are insured.

That is more likely as following the credit crunch a number of sub prime lenders wanted to get rid of bad or potentially bad borrowers and many offered deals to get them to take their mortgage elsewhere.

Any advice if I have anywhere to go?

There appears to be no complaint to answer and you are time barred even if there was.

Kazab33

Thanks for your reply. This is my first time posting here and I must admit I wasn't expecting such a rude response, I am simply asking for advice.
The property market took a serious nose dive 2007/09, I'm not sure how you aren't aware!
I understand completely what interest only means, I was asking more in terms of the mis-sold point as certain aspects were not covered at the time.

jonmoneybags

I find it quite hard to type when I am clutching at straws

Kazab33

Thanks again for another unhelpful reply.
Apologies if my post want clear. I am in debt and struggling and perhaps yes I am clutching at straws but that's generally what people do when they need help.
I was under the impression this forum was to allow people to share advice and help others so please, if you haven't got anything helpful to share can you please not use this form to have a go

jonmoneybags

Kazab33 wrote: »

Thanks again for another unhelpful reply.
Apologies if my post want clear. I am in debt and struggling and perhaps yes I am clutching at straws but that's generally what people do when they need help.
I was under the impression this forum was to allow people to share advice and help others so please, if you haven't got anything helpful to share can you please not use this form to have a go

'another' unhelpful reply.

I will give you that mine was about as helpful as a chocolate fireguard, but the one above mine was very helpful. Probably the answer you got was not what you wanted to hear however, that is not unhelpful, or rude for that matter.

societys_child

Kazab33 wrote: »

Thanks for your reply. This is my first time posting here and I must admit I wasn't expecting such a rude response

The response given in post #2 is factual and correct. Possibly not what you wanted to hear, but not rude!

Kazab33

dunstonh wrote: »

Missold mortgages are not common. I was at a FOS meeting last year and they said they don't uphold many as in the majority of cases, the person is still better off than had they been renting.



No. It was not mis-sold.

1 - The key features illustration is fairly standardised and set the regulator. On there is would clearly state that you are paying interest only and that you should have a repayment plan.
2 - your solicitor, if you used one - i say that as many bypass this stage nowadays - would read the contract to you and explain the risks.
3 - Your mortgage broker would also tell you.
4 - There is also a clue in the name "interest only".



When did the property market crash?



its a bit late now as you barred from any action under the 3/6 year rule. You have to raise a complaint within 6 years of the transaction (the purchase of the mortgage) and be within 3 years of knowing there is an issue. Both those periods have gone.



The complaints figures on mortgages and the FOS position does not support that point of view.



That is more likely as following the credit crunch a number of sub prime lenders wanted to get rid of bad or potentially bad borrowers and many offered deals to get them to take their mortgage elsewhere.



There appears to be no complaint to answer and you are time barred even if there was.

Thanks for your reply and for the information, very useful.

dunstonh

Thanks for your reply. This is my first time posting here and I must admit I wasn't expecting such a rude response, I am simply asking for advice.

How exactly is it rude?
You asked questions and they were answered. You may not like the answers but that does not make them rude.

The property market took a serious nose dive 2007/09, I'm not sure how you aren't aware!

House prices did not take a serious nose dive. Some markets in the UK didn't decline. New builds and apartments were hit harder but they always are. The average drop in value was around 10% and saw the average UK price in 2009 return to 2006 levels. By 2013, they were back at 2007 prices.

If you suffered a loss in that period, you would either have to be an apartment or new build or in one of the few loss hot spots or have the tripple whammy of a new build apartment in a loss hot spot.

However, all of this is a red herring as property values do not affect your ability to repay the mortgage. It has absolutely no impact on the mortgage.

I understand completely what interest only means, I was asking more in terms of the mis-sold point as certain aspects were not covered at the time.

You say they were not covered but what are you stating is statistically unlikely. You are saying you were never told by the mortgage broker. Never told by the lender (who uses the regulator defined documentation that does state it) and were never told by the conveyancing solicitor. How likely is that?

The mortgage key features illustration is the main document. it has a section on risks and it would cover it in there. Lenders also remind you in their annual statements.

I am in debt and struggling and perhaps yes I am clutching at straws but that's generally what people do when they need help.

You bought a property and something happened, that you have not mentioned as the change in property value has nothing to do with it. You are now in debt but that does not make the original mortgage missold. Ending up in debt is not usually the blame of someone else. More often than not it is either your fault for over spending or it is an unfortunate set of events where you end up being unlucky and you didnt or couldnt insure yourself for.

LindaBoy

I took out an Interest Only Mortgage in 2006 without any means to repay this other than I would have to save. I also took out a B2L mortgage in 2007 but the financial advisor only made the term 10 years he did this on 3 other B2L mortgages but I was able to extend these for a further 17 years. However, the first one will only let me extend for 5 years and has of course changed the rate of interest to much higher. With the crash the property is in negative equity what can I do if the mortgage is due in 5 years and house prices haven't increased? I do not have £76k to give them and have no means now to earn that sort of money.

dunstonh

With the crash the property is in negative equity what can I do if the mortgage is due in 5 years and house prices haven't increased?

I assume you are talking about a hypothetical crash as there hasnt been a crash in property for some time. If you cannot get the mortgage extended by a further period then you sell up or find alternative financing. If you cannot find alternative financing and sell with negative equity, you will have to pay the difference via your alternative methods. Such as further advance on your BTLs or selling one or more of your BTLs.

Perhaps selling it now whilst the value is higher than the amount borrowed.