Mis sold interest only mortgage??

KatieBriar

Our income for the mortgage was based on the profits of the business we were in the process of buying and was a self cert. We moved into the new house with the mortgage in the April and bought the business in the August. We never achieved the profits stated and the business closed down after 2 years. From that moment, we were unable to earn enough to apply for another mortgage. However, we always continued to pay our interest only payments, despite it being at a higher rate than we would have done had we been able to leave and take up a repayment mortgage with another company. With the collapse of northern rock (our provider) and our house price not rising in the last 13 years we were unable to switch to a different deal.
Do we just deal with this as bad luck or do we have a case for mis selling and who would we approach?

csgohan4

unfortunately lenders cannot account for issues that arise after you got the mortgage, just as anyone can lose their jobs self employed or not.


however did you over inflate your profits in order to get the house? If you did that will likely be something you don't want to admit to the lender as it could be construed as fraud


how do you think you were mis sold? you knew what you were doing, read the T+Cs and agreed to an I/O mortgage.

As with any house , prices can go up and down

ACG

You applied based on an income from a business you were buying.
At the time self certs were allowed. It is not the lenders fault you guys either did not do your due diligence on the company you were buying or were not able to make it as successful as it had been or even the recession.

[Deleted User]

KatieBriar wrote: »

Do we just deal with this as bad luck or do we have a case for mis selling and who would we approach?

You have a case for mis buying.

You would need to approach yourself with regard to that.

Thrugelmir

KatieBriar wrote: »

However, we always continued to pay our interest only payments, despite it being at a higher rate than we would have done had we been able to leave and take up a repayment mortgage with another company. With the collapse of northern rock (our provider) and our house price not rising in the last 13 years we were unable to switch to a different deal.

Interest rates have fallen in that time frame. If you had maintained your monthly repayment at the initial level you would eaten into the capital balance owed.

dunstonh

Do we just deal with this as bad luck or do we have a case for mis selling and who would we approach?

Its a shame you didnt buy PPI. At least that would have given you some protection.

You have no grounds for missale as the lender is not responsible for the failure of your business.

You made a choice and it didnt pay off for you. That is not misselling.

Tillydot

I can understand how easy it was to get in a mess with a Northern Rock Mortgage Katie. Why not have a look on facebook. There is a group called "Mortgage Prisoners" which was recently on Panorama and is doing so much work to help people like you and me.