Mis-sold Mortgage

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Hello, I’m new to this but thought this was to get the best advice from lots of experts.
I took a mortgage out with YBS in 2008. I’d been with my boyfriend for 6 months. I had £13k as a deposit. We went to our local branch of YBS and had several meetings with the onsite mortgage advisor. The up shot of it is...we took out a joint mortgage, fixed rate at 5.99% for 10 years. I was only 25 at the time and very naive/stupid/uneducated about buying houses. After 6 months, my boyfriend left me and I had to continue to pay the mortgage on my own otherwise I would have lost my £13,000 deposit, not to mention the long term negative affect it would have had on my credit history. The YBS would not take my ex off the mortgage because I couldn’t ‘afford’ it on my own. They also wouldn’t allow my parents to go on the mortgage because they didn’t live in my house. I struggled significantly, for 6 years to pay the £750 a month mortgage, when only earning £1000. Without my families help, I’d have lost everything.
Looking back, with hindsight, I believe I was mis-sold the mortgage. Who the hell would advice a 25 year old, who’d been with a guy for 6 months, to tie into a mortgage for ten years...at 5.99%. Surely they forecasted the rates extremely wrong and I ended up paying £6000 (redemption charge) to come out of the mortgage and changed provider.
I have written all the details up and I’m looking to send my ‘claim’ to YBS. I believe there a 6 year limit on these sorts of things, but is that statutory or just for guidance.
It’s taken me until November this year to become debt free, having tried everything to keep my house.
Has anyone any advice, guidance, input, that could support my case. Thanks in advance.

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  • SonOf
    SonOf Posts: 2,631 Forumite
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    We went to our local branch of YBS and had several meetings with the onsite mortgage advisor.

    Most mortgage sales by banks in 2008 were non-advised. Are you sure it was an adviser and not a clerk? - it makes a difference.
    The up shot of it is...we took out a joint mortgage, fixed rate at 5.99% for 10 years.

    Not an unreasonable thing to do in 2008 as 5.99% is below the long term average for mortgage interest rates and there were concerns rates were about to rise.
    After 6 months, my boyfriend left me and I had to continue to pay the mortgage on my own otherwise I would have lost my £13,000 deposit, not to mention the long term negative affect it would have had on my credit history.

    That is a kick in the teeth.
    The YBS would not take my ex off the mortgage because I couldn’t ‘afford’ it on my own. They also wouldn’t allow my parents to go on the mortgage because they didn’t live in my house

    Their position is correct and normal.
    Who the hell would advice a 25 year old, who’d been with a guy for 6 months, to tie into a mortgage for ten years...at 5.99%.

    You probably were not advised. You were probably given information for you to decide.

    However, at 25, you are well into being an adult and your legal adviser should have pointed out the risk warnings to you. That is unless you went with a basic conveyancing service to save money. In which case you would be expected to read the risk warnings for yourself and confirm you have done so.
    Surely they forecasted the rates extremely wrong and I ended up paying £6000 (redemption charge) to come out of the mortgage and changed provider.

    They did no such thing. Fixed interest mortgage rates are to give you the certainty of amount for the long term. Not to necessarily be the cheapest. To expect them to predict the credit crunch and global recession is daft.
    I believe there a 6 year limit on these sorts of things, but is that statutory or just for guidance.
    It isnt statutory. It is regulatory. The FCA guidelines are 6 years from the date of sale (ie.2008) and three years from being reasonably aware of an issue. Both rules need to be met to timebar.
    Surely they forecasted the rates extremely wrong and I ended up paying £6000 (redemption charge) to come out of the mortgage and changed provider.

    That was a personal decision you made. You didnt have to pay the ERC. You chose to do so. Its unlikely a complaint on that basis would succeed. Also, the date you changed the mortgage could trigger the 3 year clock.
    Has anyone any advice, guidance, input, that could support my case.

    The first thing to realise that mortgage complaints have a tiny success rate. Its not an area that has much success because
    1 - The regulator mandated the key features illustration in 2004 and all lenders have to issue it to that format. The risk warnings are in there and you agree that you have read them.
    2 - You get legal advice unless you choose to bypass that to save money. However, the conveyancer gets you to confirm you have read the risk warnings.
    3 - Most bank sold mortgages were non-advised. So, you cannot complain about advice you did not get.

    In your case you have the following issues
    1 - you are complaining they didnt have a crystal ball.
    2 - you are complaining that you lacked the maturity to have a mortgage. Yet you were 25.
    3 - you are complaining that the bank couldn't predict your future relationship. Plenty of 25-year-olds buying a house together live the rest of their lives together.

    Even if you are in the tiny number that succeeds in their complaints, you have the issue that the bank is allowed to take the gain in property value that has occurred. indeed, in a recent ombudsman decision, the FOS upheld the complaint (against a mortgage broker on an advised sale) but stated that the property must be sold within 12 months and only if there was a loss between the original purchase price and the sale price plus costs would there by any redress payable. We don't know if there was as that wasn't in the published decision. However, it was widely interpreted that the FOS did feel it was missold but the person was better off compared to renting and had made a financial gain and therefore shouldn't profit further.

    It is always hard to predict an outcome on very limited information. However, on the basis of currently mortgage complaints and the reasons they succeed and fail its hard to see how you would have a valid case based on the reasons you have given.
  • parking_question_chap
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    Hello, I’m new to this but thought this was to get the best advice from lots of experts.
    I took a mortgage out with YBS in 2008. I’d been with my boyfriend for 6 months. I had £13k as a deposit. We went to our local branch of YBS and had several meetings with the onsite mortgage advisor. The up shot of it is...we took out a joint mortgage, fixed rate at 5.99% for 10 years. I was only 25 at the time and very naive/stupid/uneducated about buying houses. After 6 months, my boyfriend left me and I had to continue to pay the mortgage on my own otherwise I would have lost my £13,000 deposit, not to mention the long term negative affect it would have had on my credit history. The YBS would not take my ex off the mortgage because I couldn’t ‘afford’ it on my own. They also wouldn’t allow my parents to go on the mortgage because they didn’t live in my house. I struggled significantly, for 6 years to pay the £750 a month mortgage, when only earning £1000. Without my families help, I’d have lost everything.
    Looking back, with hindsight, I believe I was mis-sold the mortgage. Who the hell would advice a 25 year old, who’d been with a guy for 6 months, to tie into a mortgage for ten years...at 5.99%. Surely they forecasted the rates extremely wrong and I ended up paying £6000 (redemption charge) to come out of the mortgage and changed provider.
    I have written all the details up and I’m looking to send my ‘claim’ to YBS. I believe there a 6 year limit on these sorts of things, but is that statutory or just for guidance.
    It’s taken me until November this year to become debt free, having tried everything to keep my house.
    Has anyone any advice, guidance, input, that could support my case. Thanks in advance.


    What sort of 25 year old thinks its a good idea to get into a 10 year mortgage with somebody they have only known 6 months?

    Whilst legally you might or might not be entitled to something back. Has it crossed your mind yet that perhaps you should shoulder some of the blame?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Who the hell would advice a 25 year old, who’d been with a guy for 6 months, to tie into a mortgage for ten years

    Banks provide mortgage finance not relationship counselling.
  • SpiderLegs
    SpiderLegs Posts: 1,914 Forumite
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    Someone should really report this to the police. The thought of some sick bloke grooming a 25 year old. Disgusting.
  • haras_nosirrah
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    As a mortgage advisor I have only ever done 1x 10 year fix in 14 years and that was because the clients have been together 20 years and they wanted to fix it for 10 years as they have no intention of moving and only have 10 years left on their mortgage. I recommended a 5 year but they insisted on a 10 so they got one.

    Would I advise someone in your situation to take a 10 year fix - absolutely not

    However had you used a mortgage advisor you may have had some redress depending on what was recorded about their reasoning for a 10 year fix at the time but you didn't have advice as in going direct to a lenders branch and not using a mortgage advisor you went the non advised route and therefore you have no complaint
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mrswilliams12
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    Thank you all for your responses. Some very genuine, useful and kind, others not so much. Many thanks
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