Misold interest only mortgage

r4478

Hello,
I have reason to believe that I was misold an interest only mortgage back in 2008. I believe that the broker was not sure and 'vague' about how we were to pay off the main lump at the end of the period and left it up to us to decide how we were going to do it, a suggestion that we would rely on the house value going up was made.

At the time the mortgage was applied for I had just left the Armed Forces and my partner was just starting her own business. I had just taken up new employment so had one, if any payslips to show my income.

So I'm not sure that we should have been provided an interest only mortgage.

Is this in the same vain as PPI claims?

What are the next steps for us to take?

What remedies/outcomes are possible?

Thanks for taking the time to read this.

davidmcn

What loss do you think you've suffered?

ACG

Having an interest only mortgage in itself is not a miss sale.
If you did not have a repayment strategy other than selling up at the end of the mortgage, why did you agree to it if you were not happy? You can not agree to something in full knowledge and then decide 11 years down the line it was miss sold.

It is 100% not the same as PPI. PPI was almost a given if you complained you would get a refund. Interest only miss sales are very different and you will need to be able to explain and potentially provide evidence to prove the miss sale. In the first instance you need to complain to the company - their details will be on your mortgage offer.

If they no longer exist, they may have been part of a larger company, so you could complain to them. If they do not exist then you can go to the financial ombudsman.

Interest only mortgages still exist today, they are very much allowed.

Hasbeen

r4478 wrote: »

Hello,
I have reason to believe that I was misold an interest only mortgage back in 2008. I believe that the broker was not sure and 'vague' about how we were to pay off the main lump at the end of the period and left it up to us to decide how we were going to do it, a suggestion that we would rely on the house value going up was made.

At the time the mortgage was applied for I had just left the Armed Forces and my partner was just starting her own business. I had just taken up new employment so had one, if any payslips to show my income.

So I'm not sure that we should have been provided an interest only mortgage.

Is this in the same vain as PPI claims?

What are the next steps for us to take?

What remedies/outcomes are possible?

Thanks for taking the time to read this.

Sorry would suggest it was misbought. You applied and you accepted mortgage. They are available today. There are numerous threads on here where people have misbought. You can contact the provider.

normanna

r4478 wrote: »

Hello,
I have reason to believe that I was misold an interest only mortgage back in 2008. I believe that the broker was not sure and 'vague' about how we were to pay off the main lump at the end of the period and left it up to us to decide how we were going to do it,

You have zero chance with this in my opinion. You took out the mortgage and failed to put a repayment vehicle in place, it was not up to the broker to decide which avenue you wished to take in order to do this. You will have yearly mortgage statements that mention you have not paid off any capital that you've not acted upon. I see no grounds for complaint from what you've written.

I suggest you start paying money towards the mortgage now and/or switch to a repayment mortgage while there's still time.

AnotherJoe

So even at best, your strategy was you'd sell the property?

Has it dropped in price since 2008?

How much cheaper are the interest only payments than rent?

expatfred

How do you prove this?



With a yearly mortgage statement coming through the post it's obvious that the loan isn't reducing?


I thought with an interest only mortgage you had to demonstrate some sort of plan to pay off the amount in the future.

Caz3121

r4478 wrote: »

how we were to pay off the main lump at the end of the period and left it up to us to decide how we were going to do it

so what were your thoughts back then about how you will pay it off when the time comes
In the last 11 years have you looked at changing to a repayment mortgage rather than have to sell when the mortgage term is over?

dunstonh

I have reason to believe that I was misold an interest only mortgage back in 2008. I believe that the broker was not sure and 'vague' about how we were to pay off the main lump at the end of the period and left it up to us to decide how we were going to do it, a suggestion that we would rely on the house value going up was made.

What about that makes you think it was missold?

Post credit crunch the rules changed but pre-credit crunch, interest only mortgages without a repayment vehicle were allowed.

So I'm not sure that we should have been provided an interest only mortgage.

Post credit crunch, no. Pre-credit crunch maybe.

Is this in the same vain as PPI claims?

no

What remedies/outcomes are possible?

There are very few interest only mortgage complaints despite claims companies trying to talk them up. Indeed, the FSCS just last week criticised claims companies for putting in bogus and poorly researched interest only complaints that lead to rejection.

The FOS have also said they generally dont have a concern. However, where they have upheld complaints, they have put in place redress methods which usually result in no redress.

A recent FOS case that was upheld said that the homeowner had to sell their house at market price within the next 12 months and that the mortgage broker would be liable if the house sold for less than what it was bought for 10 years earlier.

If your house price is higher today than it was when you bought it then you are wasting your time putting in a complaint.

I thought with an interest only mortgage you had to demonstrate some sort of plan to pay off the amount in the future.

You do now but you didnt until the rules were changed after the credit crunch.

Exodi

Rather than make my own thread, it seems easier to just ask here as it's one the same topic.

I bought an Xbox One last year on a 'Buy Now Pay Later' deal, it's fair to say I've gotten a good amount of use from it. I've just realised next month repayments become due on it... do I have a clear case of being mis-sold an Xbox One? I've decided I'd rather not pay for it so surely the retailer should have checked I intended to pay for it after the deal expired?

How much compensation am I due?

bertiewhite

Exodi wrote: »

Rather than make my own thread, it seems easier to just ask here as it's one the same topic.

I bought an Xbox One last year on a 'Buy Now Pay Later' deal, it's fair to say I've gotten a good amount of use from it. I've just realised next month repayments become due on it... do I have a clear case of being mis-sold an Xbox One? I've decided I'd rather not pay for it so surely the retailer should have checked I intended to pay for it after the deal expired?

How much compensation am I due?

Who was offering such a deal?