Misselling of interest only mortgages..?

Charlton_King

Until becoming mortgage free a couple of years back, I'd had a series of interest only deals over perhaps twenty years.

I'm beginning to see spam emailing relating to 'misselling' of these and 'claiming'.

Is there anything solid behind this?

spadoosh

Going to your spam file and thinking its legit.

They are going to your spam file and youre asking if they are solid?

I can email you, a complete randomer (priovided i had your email adress of course) and its incredibly unlikely it will show as spam. Your bank emails dont show as spam. Your MSE emails dont show as spam.

The emails from nigerian princes do show as spam. ****&youve won%$^£"**** emails go to spam. **CHARLTON KING.... WANT TO SEE HOW BIG YOU CAN GET** go to spam. **HEY BABY IM A HOT CHIKITA IN YOUR AREA** go to spam.

AnotherJoe

I think everyone who took out an IO mortage and complains should have it cancelled without penalties, the house sold and any equity above what they bought it for, given back to the lender , and they can then go into rental which they were obviously better suited to.

Charlton_King

spadoosh wrote: »

Going to your spam file and thinking its legit.

They are going to your spam file and youre asking if they are solid?

I can email you, a complete randomer (priovided i had your email adress of course) and its incredibly unlikely it will show as spam. Your bank emails dont show as spam. Your MSE emails dont show as spam.

The emails from nigerian princes do show as spam. ****&youve won%$^£"**** emails go to spam. **CHARLTON KING.... WANT TO SEE HOW BIG YOU CAN GET** go to spam. **HEY BABY IM A HOT CHIKITA IN YOUR AREA** go to spam.

Plenty of PPI spam emailing around... and PPI misselling was real enough. Engage brain before opening mouth...

Charlton_King

AnotherJoe wrote: »

I think everyone who took out an IO mortage and complains should have it cancelled without penalties, the house sold and any equity above what they bought it for, given back to the lender , and they can then go into rental which they were obviously better suited to.

I'm only curious as to whether there actually was any 'misselling' in this area and what form it took.

[Deleted User]

You don't need a claims company to buy the stamp for you. Just make your complaint yourself.

What is your complaint?

Charlton_King

Deleted_User wrote: »

You don't need a claims company to buy the stamp for you. Just make your complaint yourself.

What is your complaint?

Explain why you think I have any complaint.

Have you never heard of curiosity?

dunstonh

Broadly speaking, no.

Mortgages were not regulated prior to October 2004. So, there that is where the window opens.
Most bank mortgages where you went direct to bank were non-advised. So, that can close those off. As its not the product but the advice.
The FOS generally class pre-credit crunch new interest-only mortgages as acceptable as there were not concerns pre credit crunch. So, it requires a failure in advice and audit trail between 2004-2008

If you have a post 2004, advised interest only mortgage for the first time then that is your window. However, even in cases where the FOS uphold (which are unusual), they will usually compare against rental. And with interest only mortgages typically being cheaper than rent and the person gaining in equity value, there is no redress to pay.

In a recent FOS uphold decision, the FOS said that only if the property was sold in the next 12 months and if it resulted in a loss of value from the purchase price would there be any redress. So, on the one hand they said that case was missold but on the other they told the person to politely take a hike as they were so much better off because of it.

Overall, the majority of missold mortgage complaints fail. There are hardly any CMCs active in this area now and the few that are tend to hit people with upfront fees or, mnore commonly, a delayed upfront fee (i.e. nothing immediate but about 6 weeks later, they claim you have a case but need £xxxx to proceed further - they usually throw a made up figure at the person to play to their greed to encourage that up front fee).

tacpot12

Interest-only mortgages were mis-sold in the past. To my mind this mis-selling only occurred when the person did not have the mental capacity to understand that are the end of the interest free period the full amount of the capital would become payable in full, and there would be consequences (e.g. repossession and eviction) if the full amount of the capital was not repaid. Or if they were not told about the need repay the capital in full and the consequences of not repaying the capital on time.

Generally the mortgage company can prove that the customer was told about the need to repay the capitcal and the consquences of not doing so, (and customers were re-reminded of these on their annual statements as a result of regulatory intervention) so you may have to prove that you didn't have capacity at the time you were sold the interest only mortgage in order to claim mis-selling. The rules have changed now, and lenders have to consider whether you have capacity, previously they didn't.

Charlton_King

So Dunston, there was nothing specifically relating to interest only mortgages that singles them out as having been commonly 'missold' in any way, would I be right?

[Deleted User]

Charlton_King wrote: »

Have you never heard of curiosity?

No. My cat has, but I haven't seen him in ages.