Mis sold mortgage 2004

tabitha100

Hi there,
I am extremely late to this I know, but lately the 40 year old me has become rather miffed for the naive 26 year old me. I purchased an interest only mortgage through a broker that came to visit me and I signed/sealed the deal the same day with no for of savings acc alongside it. I went for interest only so I could afford the house I actually wanted and as we all know, that was something of a stretch and shouldn't have gone for. I certainly couldn't have afforded the repayment version. Basically, Im asking if Im too late to look into all this. It was October 2004. I dread to think how many naive young adults this broker has advised into mortgage hell since then.

Many thanks

ACG

It was Pre regulation. Also Interest only does not mean it was miss sold.
Interest only mortgages are still available now.

You put down how you planned to clear the mortgage on the application, if you lied or did not follow that up, that is your bad. It is not our job to babysit you and make sure the adult 26 year old does what they say they will.

Start overpaying, the sooner you overpay, the sooner you make a dent in to the balance, the sooner it gets paid off.

foxy-stoat

You mis-bought.

Important numbers now though.....how much is the mortgage, how much is it worth now and how many years left on the mortgage before you have to pay it off?

AnotherJoe

Sounds shocking.

What I suggest you do is sell your house, pay back to the lender the equity in the house you otherwise could not have afforded has risen by. Also calculate the extra that renting would no doubt have cost you over an IO mortgage, and pay that back as well to a landlord you'd otherwise have paid it to.
Then start renting.
Phew, mortgage misselling fixed and now you are back where you would have been if that interfering broker hadn't conned you.

foxy-stoat

AnotherJoe wrote: »

Sounds shocking.

What I suggest you do is sell your house, pay back to the lender the equity in the house you otherwise could not have afforded has risen by. Also calculate the extra that renting would no doubt have cost you over an IO mortgage, and pay that back as well to a landlord you'd otherwise have paid it to.
Then start renting.
Phew, mortgage misspelling fixed and now you are back where you would have been if that interfering broker hadn't conned you.

Also if he has made a profit on the property when its sold - give that back to the broker - scammer....

dunstonh

Basically, Im asking if Im too late to look into all this.

Several things
1 - The FOS have no issue with interest only mortgages sold prior to the credit crunch
2 - October 2004 was when regulation started (so if you signed the application prior to that, you cant complain anyway)
3 - You havent mentioned any losses. So, was there any? (gain in property value is taken into account).

. I went for interest only so I could afford the house I actually wanted and as we all know,

So, you used it to get on the ladder. Seeing how much property values have risen since then, it appears to have done its job.

What exactly is your complaint?
What exactly have you lost?

Exodi

I've got to ask the knowledgeable forumites as this style of thread seems to be increasingly popular and I feel like I'm not understanding the issue at all.

People will make a fixed monthly payment (interest) but would have otherwise been paying rent. Being interest only, this will likely be lower than the market rent rate AND is protected against inflation.

The person will then be required to settle the outstanding balance at the end of the mortgage. It's no secret that house prices have gone up (a lot!) over the years so again, it should almost certainly cover the outstanding balance and give you a tidy profit?

Unless people are upset that despite taking an Interest Only mortgage (as they couldn't afford a Repayment mortgage) they should still be entitled to fully own the house? Why do people seem to be so commonly upset by Interest Only mortgages, I'm clearly missing something?

I mean this sincerely and do not mean to make fun of the matter; I've clearly missed the disadvantages?

dunstonh

Unless people are upset that despite taking an Interest Only mortgage (as they couldn't afford a Repayment mortgage) they should still be entitled to fully own the house? Why do people seem to be so commonly upset by Interest Only mortgages, I'm clearly missing something?

It is called compensation culture. Why take responsibility for your actions when you can blame someone else?

Edi81

The OP last posted in 2008 about a property they were renting out! What’s to bet it’s this one?!?

Blackbeard_of_Perranporth

Just for the record!

https://forums.moneysavingexpert.com/discussion/1367287/court-threat-by-tenant-wanting-deposit-back

Im new to this Landlord business, here is my dilema...
Prospective tenants viewed our house, (we were living there, mortgaged) they were very keen and the week after a Holding deposit was paid to us. Move in date was agreed for 1st Dec. and verbal agreement they wanted to buy our washing machine.
Told them we are now moving out for them and will do our very best to have it all brand new for the 1st. They were very excited. We moved the family out ( a huge task to do in a short space of time) ...Painted everywhere, professionally cleaned to a hight standard. 5 days before move in date the tenant said they didnt want to purchase the washing machine.
Had to hire Man and Van to move washer as we had already sent van back from our move.
Turned down 2 prospective tenants during this time who saw advert before it expired and wanted to view.
Called Tenant on the Fri and agreed on Mon 1st to meet at the house and hand over keys, take 1st months rent, go through itinerary and sign tenancy agreement.
Went to the house (1hour drive) sat and waited half an hour. Called tenant twice, no reply and then she called back and said they weren’t taking the house.
...I know... stupid arent we!? Now she wants her deposit back (equivalent to 1 months rent). Didnt know this game was so ruthless. Is the law on my side?

SpiderLegs

Naive 26 year old for gods sake.