Mortgage Mis-Selling - Mortgage.claims

Andyian30

Hi Everyone.

Newbie here, so please be nice.

Just wanted to know if any of you have successfully pursued a mortgage mis-selling claim and whether you was successful. about 12 years ago when I was young and foolish, I took out an interest only mortgage through a broker and no point was I advised about taking out any type of repayment vehicle to cover the mortgage if I kept the mortgage for full term. Although my plan was only to stay in the property for up to 3 years it didn't go to plan because a year after I bought the property the house prices crashed and it is only now back in equity.
Has anyone used the company mortgage.claims to check if they have a case? If so how did you find the process?
TIA
Andy

Caz3121

It's worth having a look at the ombudsmen case studies...very few claims qualify. If you did have a valid claim there is no need to involve a company who will take 25-35% + VAT
https://www.financial-ombudsman.org.uk/publications/technical_notes/interest-only-mortgage-case-studies.html

muhandis

Andyian30 wrote: »

Just wanted to know if any of you have successfully pursued a mortgage mis-selling claim and whether you was successful.

Yes. Not personally, but there is a big database of successful FOS claims here that are specific to your query. https://www.ombudsman-decisions.org.uk/

If you search using the terms "interest only mortgage repayment vehicle", tick the box that says upheld and select a date range (say the last 2-3 years), you will see plenty of successful cases (where the advice was given pre-crisis during the wild west days of IO mortgages) that have reached the Ombudsman where they have ruled in favour of the borrower based on their requirement that it is the adviser's responsibility to ensure that there is a repayment vehicle that is fit for purpose when recommending that a borrower take out an IO mortgage.

In your place I would get a cup of tea, go through the cases and see if your situation is similar. This will give you a decent idea of the merits of your case and whether or not there is a decent chance of success.

Whether to use a no-win no-fee claims company or not is entirely a matter of whether you want to outsource the review and effort (for a very hefty cut of any potential compensation) or do it yourself.

In your place, I would consider using no win no fee claim firm only to get a free review to see if there is any merit in my case and then handle it myself. I have done this in the past for a mis-sold insurance policy and had the Ombudsman rule in my favour eventually.

However, remember that firms will (understandably) fight tooth and nail against potentially large claims and try to constantly fob you off, so you need to be fairly persistent and be confident about making a case and staying on it.

Good luck!

Andyian30 wrote: »

Hi Everyone.

Newbie here, so please be nice.

Just wanted to know if any of you have successfully pursued a mortgage mis-selling claim and whether you was successful. about 12 years ago when I was young and foolish, I took out an interest only mortgage through a broker and no point was I advised about taking out any type of repayment vehicle to cover the mortgage if I kept the mortgage for full term. Although my plan was only to stay in the property for up to 3 years it didn't go to plan because a year after I bought the property the house prices crashed and it is only now back in equity.
Has anyone used the company mortgage.claims to check if they have a case? If so how did you find the process?
TIA
Andy

dunstonh

Just wanted to know if any of you have successfully pursued a mortgage mis-selling claim and whether you was successful.

Statistically, no. The long term average uphold rate for mortgages is 11% but is currently running around 5%. Just in the last few weeks the FSCS have issued criticism of CMCs that are putting in speculative complaints that are just not up to scratch. The FCA have now taken over regulation of CMCs and already they are acting on try-it-on complaints.

about 12 years ago when I was young and foolish,

But old enough to drive, be a parent, to vote etc.

I took out an interest only mortgage through a broker and no point was I advised about taking out any type of repayment vehicle to cover the mortgage if I kept the mortgage for full term.

Most mortgage brokers do not hold investment permissions and are not authorised to put in place repayment vehicles. However, they are required to put the risk warnings about having one and not having one in their report.

Although my plan was only to stay in the property for up to 3 years it didn't go to plan because a year after I bought the property the house prices crashed and it is only now back in equity.

This is key information. You had a plan. A plan that would have made a repayment vehicle a missale. Ideally, a repayment mortgage would have been better but that is easily covered in the report.

Secondly, and probably the most important thing, you are not in negative equity. Even if you have a nailed on valid complaint that goes on to succeed, you have equity in your property and are better off by having the property than not having it. You have also paid less in mortgage interest than rent over that period.

So, as you are not in a loss position, what do you expect to get out of a complaint?

foxy-stoat

Andyian30 wrote: »

I took out an interest only mortgage through a broker and no point was I advised about taking out any type of repayment vehicle to cover the mortgage if I kept the mortgage for full term

And who did you think was going to have to pay the mortgage?

I assume the value of the property has gone up in the last 12 years, I hope you will be handing over any profits to the lender if you want to go after them for mis-selling. Also where were you planning on sleeping for the last 12 years if this mortgage was mis-sold and they tricked you into buying a property, under a bridge with some cardboard boxes.

Must be a wind up.