Mis sold mortgage 2004

amnblog

Regardless of any potential arguments about the rights and wrongs of what was done, you have no recourse to compensation against advice from October 2004 Tabitha.

Forget it.

Scad

The boards are giving short shrift to chances tonight. Tabitha, you might want to try some aftersun on that burn you just got from these posters.

silvercar

Exodi wrote: »

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?

Yeah but:

1. Property prices can fall as well as rise. Particularly new builds.
2. If they hadn't bought people may be living with family or renting a room in a shared house. It isn't always a buy/ rent choice. People often rent a smaller property than they aim to buy
3. This country has an attachment to owning your own home; people feel they aren't progressing with life if they don't buy a home.

AnotherJoe

silvercar wrote: »

Yeah but:

1. Property prices can fall as well as rise. Particularly new builds.
That doesnt mean people should get to make a one-way bet. Property rises, they keep schtum, falls, they get compo ? is that your suggestion?

2. If they hadn't bought people may be living with family or renting a room in a shared house. It isn't always a buy/ rent choice. People often rent a smaller property than they aim to buy
Thats their choice and doesn't affect whether or not a mortgage was missold.

3. This country has an attachment to owning your own home; people feel they aren't progressing with life if they don't buy a home.

Thats their choice and doesnt affect whether or not a mortgage was missold.

I propose that anyone who says "I didnt realise I'd have to repay an IO mortgage and it was unfair i was allowed to buy a house given that condition though I want all the profit I made" should have their property confiscated and be placed under legal guardianship of social services with five pounds spending money a week.
And anyone who says that whilst renting their property out, should only get one pound a week spending money.

Exodi

silvercar wrote: »

Yeah but:

1. Property prices can fall as well as rise. Particularly new builds.
2. If they hadn't bought people may be living with family or renting a room in a shared house. It isn't always a buy/ rent choice. People often rent a smaller property than they aim to buy
3. This country has an attachment to owning your own home; people feel they aren't progressing with life if they don't buy a home.

I appreciate AnotherJoe has also provided his response to your comment but I have to echo his views.

In regards to your first point, I think you'll be hard pressed to find a property purchased in 2004 worth less than it is now (being that the BoE puts the total inflation since 2004 at around 150% and that's not even considering the fact house prices have gone up more than inflation over this period).

Your other points are mostly irrelevant to the OP's issue and feature questionable logic.

It's already been pointed out the OP had been renting his house out and (almost certainly) will still make a tidy profit from this. He just doesn't get to keep the house he hasn't paid for - unfair huh?

silvercar

I was just providing some alternative answers to Exodi's post. Not disagreeing with you on the idea of compensation.

If you want examples of where house prices have fallen, try the north-east of England or Northern Ireland.

csgohan4

OP are you on a BTL mortgage, because if your renting on a residential Mortgage, your in a world of hurt. Please define your loses