Mis-sold interest only mortgages

salbie

I keep seeing adverts for reclaiming mis-sold interest only mortgages - is there any truth in this, and has anyone successfully had any refunds? I don't see anything on the forums or on the main site, so sceptical. Would love to hear if anyone has any experience

Thrugelmir

If you believe that you've been mis-sold provide details. Bear in mind that mortgages are applied for not sold. The customer accepts the product that they are offered. There's no gun held to their heads to do so.

dunstonh

Its largely a scam.

One scam involves telling you that were missold but about a month or two into the process they tell you that you could get back £xx,xxx but they need a thousand or two from you to proceed.

The other is a legal packing scam which has seen solicitors suffer the losses but is now seeing unregulated crowdfunding mugs being scammed into funding it.

I don't see anything on the forums or on the main site, so sceptical.

There have actually been a very tiny number of successes on interest-only mortgages. However, they are very small and often result in no money as the usual comparison is to compare against rent you would have paid and deduction of the equity you have built up in the property. (i.e. you are better off even in an interest only mortgage in most cases). Indeed, a recent FOS decision stated that the person would only get redress if they sold their property in the next 12 months and that they sold it for less than they bought it for.

Mortgage advice only became regulated in 2004. So, that eliminates many pre-2004 mortgages. And the FOS have generally positioned pre-credit crunch interest only as acceptable under FCA rules.

ACG

Having an interest only mortgage in itself is not an issue. You can still get interest only mortgages now and actually after that part of the market contracted massively, it is opening up again.

A mortgage can be miss sold, but you need to evidence why it was not suitable.

salbie

Thank you for your replies. It's really helpful, and I do realise we are way better off with an interest only mortgage, than renting.
The advertisements promise huge payouts, so the thought of paying off the mortgage is tempting, but I'll leave things as they are

chucknorris

salbie wrote: »

I keep seeing adverts for reclaiming mis-sold interest only mortgages - is there any truth in this, and has anyone successfully had any refunds? I don't see anything on the forums or on the main site, so sceptical. Would love to hear if anyone has any experience

The clue is in the name 'interest only' (all our mortgages are interest only), what made you think that your interest only mortgages were also paying off the capital borrowed?

We used to joke about such claims on here a few years ago (joke because it is ridiculous), I really can't believe that anyone could be daft enough to not know what they were doing. Were you that daft?

tacpot12

Salbie, what it your plan to repay the capital of your IO mortgage?

salbie

chucknorris wrote: »

The clue is in the name 'interest only' (all our mortgages are interest only), what made you think that your interest only mortgages were also paying off the capital borrowed?

We used to joke about such claims on here a few years ago (joke because it is ridiculous), I really can't believe that anyone could be daft enough to not know what they were doing. Were you that daft?

There is always one, isn't there. I never once said I didn't know what an interest only mortgage was, and that I didn't know what i was getting into. There is no need to 'presume' and to decide people are daft. I was asking about the adverts that offer compensation for miss-sold interest only mortgages

salbie

tacpot12 wrote: »

Salbie, what it your plan to repay the capital of your IO mortgage?

Hi tacpot22
We contribute to a regular savings towards paying off the capital.

chucknorris

salbie wrote: »

There is always one, isn't there. I never once said I didn't know what an interest only mortgage was, and that I didn't know what i was getting into. There is no need to 'presume' and to decide people are daft. I was asking about the adverts that offer compensation for miss-sold interest only mortgages

How could they possibly have been miss-sold, the clue is in the name 'interest only', what part of 'interest only' do you not understand?

dunstonh

The advertisements promise huge payouts, so the thought of paying off the mortgage is tempting, but I'll leave things as they are

Only place I have seen them is on facebook (where many adverts are scams) and cold calling (where most cold calls are scams or dodgy).