Wrong mortgage advice?

helphelphelp

I to have received this letter. Not named only our address on. I thought this could be a scam and like you I did some checks on the FSCS website and all seems to be legit.

We were advised by TMMP to remortgage for debt consolidation purposes. I do have all of the paper work from TMMP, which clearly states that they recommend we take this out. I need to gather a little more information to send to the FSCS.

My only brick wall is the solicitors that dealt with our Remortgage at the time are no longer trading and cannot be found. I contacted the SRA for information on this.

Have you pursued this?I am aware it can take 6 months to investigate. As someone stated nothing ventured nothing gained. (Good Luck with it)

ACG

helphelphelp wrote: »

Have you pursued this?I am aware it can take 6 months to investigate. As someone stated nothing ventured nothing gained. (Good Luck with it)

One thing to bare in mind, although I appreciate it will be quite low on your list of priorities, mortgage brokers (more or less all financial service companies) pay into the pot that funds the Financial Ombudsman/FSCS - so by making a complaint even if everything was explained properly and performed as expected, you are helping to bump our costs up. We have to pay thousands a year to FCA as it is.

I do not mind, it is a cost of doing business and helps to build confidence in our industry, but it is not victimless ultimately someone has to pay.

JaynyB

Hi there. I know this thread is a few months months old now but I wondered if you pursued the claim with the FSCS, and if it worked out for you. I’m in a very similar situation but with a different broker who gave us some shocking advice that we took while we were young and foolish.

dunstonh

The FSCS issued a statement in April about Mortgage complaints.

Its report says: “During 2018/19 we have seen a change in claims made to FSCS with increasing volumes of mis-selling claims being provided with very little substance or evidence to support the claim being made.

“Due to this, these claims have a low uphold rate.”

The report continues: “We are making efforts to stop these claims before they are made and to make clear the evidence we would need to fully investigate the claims. This is factored into our forecast which sees the volumes and uphold rates return to their previous levels.

The uphold rate against mortgage brokers is around 5% by the FSCS.

amnblog

The Northern Rock Together product got to 100% or more of the purchase price via an unsecured element of lending priced at the same rate as the secured lending.

The mortgage figures were quite clear in outlining that full repayment of the secured element of lending (the mortgage), whilst leaving the unsecured element running, would mean that the interest rate on the unsecured element would rise to standard variable rate +5%.

To quantify that, a mortgage in early 2006 might have been priced at 5.99%. SVR was 6.59% so a lone unsecured element would rise to 11.69%.

This would be the risk for a borrower replacing the secured element of their Northern Rock lending via remortgage without replacing the full Northern Rock funds. Maximum unsecured lending was £30,000. In this example (this thread) with £13,000 lending, a rate rise of 5.67% would increase costs by some £650 pa.