Mortgage Claims - Sign or not to sign

time-4-a-new-start

Hi

I have a very high interest-only mortgage that was sold to before the market crash. It was quite a large mortgage which was given to me as a single young person earning just a modest amount - like thousands of others at the time.

Now in large negative equity with no way of repaying the full amount, I looked at the mortgage claims against providers and brokers who miss sold mortgages. I went through an initial review with Mortgage.claims and after a few months have been told that a review was completed and I have a case to proceed with.

Now I know this is probably what they say to many people, but I have been given a legal doc from Quanta Law to act on my behalf on a no win no claim base. Their fee if successful is 25% if settlement prior to court and 35% if it goes to court.

I have never applied for any type of PPI or other miss sold claim, so am looking for advice from anyone who has gone through this. The no claim no fee sounds good, but I notice in the form they say that i may wish to take out insurance to cover the risk of my case being unsuccessful? How does that work with a no win no fee base? Is that if it gets to court and I lose then I have to pay their fees?

Any advice would be welcome

Thanks

[Deleted User]

If you believe you have a complaint, simply make it yourself.

Never use a claims company. All they can do is post your complaint. Anything they make up is going to come back to bite you.

dunstonh

I have a very high interest-only mortgage that was sold to before the market crash.

That is key information as the FOS typically reject interest only mortgage complaints where the mortgage was taken out before the credit crunch. There are a small number of exceptions but the expectation is rejection.

Even when upheld, the FOS position is to compare where you would have been had you rented. They include any gains in value you have had from purchase. For most people, that means the redress is zero.

In a recent case that was upheld, the FOS said the person would only get redress if they sold the property within 12 months at market value and suffered a loss over the purchase price.

told that a review was completed and I have a case to proceed with.

What a surprise. As a media article recently said, the CMC has virtually no costs and can put in complaints with no recourse and they know full well that some will stick.

A number of the CMCs active in this area (and there are not many due to the low success rate), make their money from a few areas.

1 - they package their claims to solicitors who buy the package
2 - they crowdfund so-called investment returns to mugs who are told their returns are linked ot the returns. (all unregulated and highly suspect)
3 - they come back to you later in the process and say that you have a case and can get £xx,xxx but the solicitors need £x to proceed.
4 - they make money on the insurance.
5 - a cut of the small number of cases that succeed.

it is difficult to know what your one is doing.

Any advice would be welcome

The complaints process covering mortgage advice after October 2004 is regulated by the FCA and free of charge for you to use. It is generally more consumer friendly than the courts. There is no need to use a CMC or the courts.

For reference, Quanta Law was only granted their licence from 1st October 2018 and only become registered in Feb 18. They happen to be in the same building as "mortgage claims".

time-4-a-new-start

Thanks for the posts everyone

time-4-a-new-start

Thought it would be too good to be true. What would be the process with the FCA? I noticed they published a news release last Jan about trying yo sort it would with the lender rather than a claim.

https://www.fca.org.uk/news/press-releases/fca-urges-action-on-interest-only-mortgages

-taff

The FCA don't do consumer complaints.

time-4-a-new-start

So it would be the ombudsman then

[Deleted User]

time-4-a-new-start wrote: »

So it would be the ombudsman then

No.

You'll only have access to the Ombudsman after you've complained directly to the seller of the insurance and been rejected. You cannot go directly to the Ombudsman until the seller has had a chance to consider any complaint you might make.

time-4-a-new-start

Ok. As it's not insurance I would have to make a direct claim myself against the mortgage provider first and then go to the ombudsman after?

-taff

Yes, and as Dunston says, expect to be rejected and you won't be disappointed if you are.
One other thing, if a broker sold you this pre 2005, you can forget about completely.

time-4-a-new-start

No It was 2008

When I make the complaint direct are there any letter templates I could use? I know the site has templates for a few things