Interest Only Mortgage Questions!

vyousaf

Hi

I had a interest only mortgage which has now been redeemed. However the mortgage was originally around £37k but on redemtion was closer to £55k. Admittedly i was taken to court on three occasions for arrears/repossession but managed to clear it all up.

I can help but feel done by. Can i cliam the difference back?

Also i understand interest only mortgages are possibly recieving compansation? Is this true?

Thrugelmir

vyousaf wrote: »

I can help but feel done by. Can i cliam the difference back?

You can claim back whatever you feel entitled to. However whether people agree is another matter.

ACG

Ask the lender for a breakdown in where the £55k went.
If you feel that it is not justified you can put a complaint in and take it the ombudsman if needs be. You can still go to court (although small claims court is limited to £5k) after if you disagree with both outcomes.

But if you were taken to court 3 times there were probably quite a few missed/late payments and arrears and added interest plus charges for someone to chase you, court costs etc. I can easily believe £18k in costs were incurred if you went to court 3 times.

dunstonh

Also i understand interest only mortgages are possibly recieving compansation? Is this true?

No. Some claims companies started to get active in that area but the FOS has generally taken the approach that pre-credit crunch interest-only mortgages were accepted and in line with FCA rules. So, the majority of attempts of complaints failed and most CMCs are not active in that area now.

The FOS has criticised the few CMCs that have been putting in such complaints. The main area of concern for the FOS on mortgages was the use of sub-prime when prime mortgages could have been used.