Mis sold mortgage

[Deleted User]

Why do you think you are due compensation?

mrginge

Susannah67 wrote: »

There is a company who is advertising on Facebook...

Oh deary deary me

dunstonh

Susannah67 wrote: »

There is a company who is advertising on Facebook that if you took out an interest only mortgage after October 2004, you may have grounds for applying for compensation, depending on the circumstances. They are working on a no-win, no-fee basis but say they will take 35% plus VAT if you do receive compensation. I wonder if this is legitimate? Has anyone else had experience of this?

It seems facebook does attract the dodgy claims companies. SERPS was missold with a tiny failure rate of 1.5%. Yet there is a claims company on facebook encourging SERPS missale complaints (which it promptly refers to its sister company to then charge a fee to transfer to another pension and do some of the things that it puts in its scattergun complaint template).

A fee of 35% plus 20% VAT gives you an indication of the low success rate. As already said, there are very few claims companies doing missold mortgages as the chance of success is low. Most of those that do it say its no fee but after x number of weeks, come back and tell you that you have a case (even though you usually dont) but unfortunately, it cannot be done on no fee basis as the solicitors want to be paid to do it (there are no solicitors). Then a few months later they tap you up for more. By the time you realise it was a sham, the directors have emptied the company of any money and go into administration or close down before people start asking for their money back.

The FOS position on this is that the rules and standards in the year of purchase are applied and if the complaint is successful, they compare it to what you would have been in had you rented. So, if you bought your property for £100k on a £90k interest only mortgage and the property is now worth £150k, they would take that £50k equity gain into consideration and in the majority of cases, that equity gain is far higher than any perceived loss. They do this because without the mortgage you would be renting. So, to put it right, you sell up and go back to renting (except you have the equity gain in your pocket).

The only area of real concern with the FOS is where sub prime mortgages were used when prime or near prime as possible.