Have I been missold my 2nd charge mortgage?

Stephen198906

Hi,

This is my first time on this site.
Me and my wife bought a new build house in 2012 in which we couldn't afford to mortgage the full asking price for the property.

Barratts then offered to borrow us 10% of the house value in the form of an interest free loan over 10 years (at no point was this explained as a 2nd charge mortgage). We only found out it was a 2nd charge mortgage after reading through some solicitor documents a few years later.

The point I'm am making is that at the time, Barratts recommended a solicitor to us who didn't not explain the 2nd charge in detail. Barratts also did not explain the financial implications of this loan (2nd charge). As they just wanted the sale for the house and were receiving for commission for doing so and didn't throurouly explain the terms of the agreement.

Have we got a case to say that we mortgaged through nationwide for a certain amount, with the mortgage advisor (also recommended by Barratt) omitting the fact we had the 2nd charge to pay. Hence the reason we were accepted for our first mortgage.

The 2nd charge has now since been sold on to Hampton Mortgage Services by Barratts for a reduced sum.

Do we have any rights or a case to make with regards to miss-selling? Or the fact they have now sold our debt on to another company?

Hope this all makes sense as I tend to waffle.

Thanks in advance.

Stephen.

Thrugelmir

The bottom line. To buy the property. Barrett's lent you £10k. Where's the misselling?

The 2nd charge merely secures the debt owed. Given the likely amount owed. A reasonable course of action.

AnotherJoe

What actually is your complaint ? You've got an interest free loan for ten years to enable you to buy a house which otherwise you couldn't have afforded !
Compo culture gone mad. :mad:

Stephen198906

To be fair I understand this was a shot in the dark. We just felt that at the time of buying, we werent fully explained what we were lending. As now the schemes are legitime processes due to new European legislation in 2016.

It was all done in a way for a quick turnaround for Barratts in which we didn't have the time to process what the 2nd charge actually was and how it would effect us after the 10 year period. Hence the misselling angle.

And why has the debt since been sold on? As I'm sure you wouldn't see for example Barclays sell your mortgage to Halifax mid term for a reduced sum?

Edi81

How have you lost out?
If
You can articulate what you have lost because of this then we can tell if you may have a claim.

Thrugelmir

Stephen198906 wrote: »

As I'm sure you wouldn't see for example Barclays sell your mortgage to Halifax mid term for a reduced sum?

They could. Mortgages are often sold on or securitised. What they sell it for is none of your business though. As has nothing to with the debt you owe. It's a separate transaction. The terms and conditions you accepted allows this to occur as well.

You knew the loan was for 10 years. Why is it now affecting you? You've still 3 years before the loan is due for repayment.

Stephen198906

Judging by the replies I agree I may have jumped the gun using the misselling angle. I was just curious if my post had substance. Thanks for all replying.

My issue really is that we borrowed the money from Barratts and now they have sold that debt on for a reduced figure (the article I read from a few years ago could work out around half the amount).

Now I owe a third party company the full amount we borrowed when they have probably only paid half for it. I know this sounds like sour grapes and probably is. We actually have the money there to settle the debt, I would have just preferred to settle it with the company we borrowed it from.

That was my underlying reason for not wanting to pay the full amount back and only pay back what the debt was actually sold for as that it in theory all it is worth.

Stephen198906

Just read that reply Thrugelmir, thanks for honest critique. Looks like we'll just pay this company the money that we owe.

Glad is asked the question though.

davidmcn

If you didn't know you were borrowing 10% of the price then where did you think the money appeared from?

Stephen198906

I agree now this was an absolute no-starter ��

Thanks for the insights though ����

Stephen198906

Now how the hell do you close a thread hahaha!:rotfl: