Elderly parents misold a loan linked to their mortgage, help?

AlexMac

It might be worth going in to Swift with a challenging enquiry along the lines of the "Which" advice;
https://www.which.co.uk/consumer-rights/letter/letter-to-complain-about-a-mis-sold-mortgage?gclid=EAIaIQobChMIytv689iw3wIVJ7XtCh2OhwHsEAMYAyAAEgKWgvD_BwE
(after looking at your parents' paperwork of course; the original loan docuument which presumably spelled out the terms? And subsequent reminders or statements?)

The FCA has, since 2014 at least, tightened up criteria governing responsible lending; particularly interest only mortgages.

We took out an interest only loan at about the same time as your parents (about 17 years ago, when I was in my 50's; I'm approaching 72 now)

Although rates were about 6% then, we luckily opted for a BoE Base rate tracker, so, with ridiculously low base rates, we're sitting pretty now.

In about 2014, presumably becuse of the FCA advice, my lender, the Nationwide, did contact me to make sure I understood I'd have to repay the loan when I reached 75, and asked gently how I'd planned to do this. (We do have a plan).

The problem may be that lending was far less tightly regulated in the late 20th Century and early 2000's, so lenders were chucking money at you. And as rates were still hovering north of 5% then, your parents may be on a bad deal; I assume you'll check what % interest they are paying?

Either way, the lender should have been treated 'em reasonably and fairly; as my lender has done with me.

I'm no expert, but I'd give it a punt after doing a bit more research online - google "mis-sold mortgages" . I've seen ads from "ambulance chaser" or "no win no fee" lawyers saying that the regulations tightened up after October 2004 but I wouldn't recommend these cowboys.

And also- I bet the lender stitched in some PPI fees- so challenge that to; again, masses of advice on this MSE website and online.

As an aside; I don't usually visit this bit of the forums (I prefer the Housing one) but your enquiry caught my eye as I'm in the same boat (albeit that I have a plan and a lifebelt). I'm disappointed by some of the pointless replies above; how does it help and how doeas it matter to ask "What was the money spent on" or "What happened to the 40K...."? (unless they bought a Buy to Let with it and have been getting 8% RoI as we did with our £150k, lol)

And if, as you imply, your parents may not be totally financially astute, have you also considered Power of Attorney issues before they do get a bit forgetful? I've still got all my marbles, but I'll ensure my wife and I do POAs in each others' mnames before I do go gaga- probably with another trusted relative like our grand-daughter who, at the age of 23 already runs a spreadsheet each month to ensure she can survive on her rubbish wages after paying rent, utilities, travel , phone, broadband/TV and food

jonesMUFCforever

What the money was spent on is not a stupid question at all - for all we know it might have been to help the current OP to get on the mortgage ladder -- but as he/she has decided not to come back it looks like we will never know.

antrobus

AlexMac wrote: »

It might be worth going in to Swift with a challenging enquiry along the lines of the "Which" advice;

(after looking at your parents' paperwork of course; the original loan docuument which presumably spelled out the terms? And subsequent reminders or statements?)

Or not. Swift Advances, I believe, is a sub prime second mortgage lender, that operates exclusively through brokers.

Any complaint should go to the broker.

http://news.bbc.co.uk/1/hi/programmes/panorama/7037933.stm

AlexMac wrote: »

And also- I bet the lender stitched in some PPI fees- so challenge that to; again, masses of advice on this MSE website and online.

I'd bet that any PPI would have been stitched in by the broker.

antrobus

jonesMUFCforever wrote: »

What the money was spent on is not a stupid question at all - for all we know it might have been to help the current OP to get on the mortgage ladder -- but as he/she has decided not to come back it looks like we will never know.

Agreed.

The aged Ps in question must have approached a broker seeking £40k. What they told the broker about why they wanted the money, and what they actually spent it on would be relevant if you were accusing the broker of a mis sale.

Gaz83

This smacks of someone annoyed that £40k of their inheritance will be spent repaying a secured loan.