Think i was Miss sold an Interest only morgage

nelly1970

I really need help
i think I was miss sold an interest only mortgage
What do I do where do I go
Help please anyone

[Deleted User]

Why do you think you were mis sold?

The harsh truth is you probably don't go anywhere.

bigisi

Why do you think it was "mis-sold"?

Exodi

As claims of being mis-sold are absolutely rife on these forums, I'd like to include an extract from an article posted on MSE some years back:

The FCA stresses it has found no evidence of widespread mis-selling of interest-only mortgages, despite a number of claims management firms jumping on the bandwagon.

It found 81% said they knew when they took out their mortgage they would need to make arrangements to pay off the loan.

I'd imagine the OP has just realised their interest only mortgage is about to mature?

SonOf

i think I was miss sold an interest only mortgage

Noting that most interest only complaints fail, why do you think you were missold?

When did you buy the mortgage?
- was it before October 2004 (when mortgage regulation started)
- was it before the credit crunch (Interest only was considered acceptable before credit crunch)
- was it sold by a bank clerk or mortgage broker (important as non-advised sales are down to you mostly)
- was it a replacement for an already existing interest only mortgage

What do I do where do I go

Start by telling us why you think you were missold and give some of the missing information and background.

Ray_Singh-Blue

Did you enter into the interest only mortgage thinking it would be something else? If so, what made you think that?

If the answer is that you thought it would be repaid, then you mis-bought; and if the lender led you to think that then they mis-sold

If the lender was also an unmarried woman then... no let's not go there

csgohan4

Another mis bought thread and wanting someone else to blame?


When is your mortgage due? what repayment vehicle did you have ?

foxy-stoat

csgohan4 wrote: »

When is your mortgage due? what repayment vehicle did you have ?

I suspect you already know the answers:

1. Soon
2. None

ACG

If you think you were miss sold, you need to go back to the company who sold it, that will either be a broker or a lender.
If the company no longer exists, then you should speak to the financial ombudsman.

Interest only mortgages are still allowed now a days, so in itself it is not a miss sale. You need to be able to argue that you were eligible for a repayment mortgage (ie you could afford it), it was more suitable and you have suffered a financial loss because of the mortgage. No financial loss = no reason for compensation. If you could not afford a repayment mortgage at the time then interest only was your only option.

Xenon

csgohan4 wrote: »

Another mis bought thread and wanting someone else to blame?


When is your mortgage due? what repayment vehicle did you have ?

Also expecting posters to have mind reading powers

Too much for a poster in seeking advice to actually include information - even better if it's relevant and concise and to the point.

nelly1970

I took out a mortgage in 2006 we had 70k of debt and the advisor found us a lender at a higher interest rate to lend us the money the property was 145k
The lender advised us to go for interest only as it was lower repayments. we had to take our life insurance for both of us through the broker so that in the event one of us died the whole amount of the loan would be payed this is still in place.
we were gifted some money to pay our debt off. this I feel is irrelevant as my issue is we had debt and there fore the lender knew we couldn't pay the mortgage as the debt inc bills was more than what was coming into the household. We have however never defaulted on the loan.
we were advised to set up a savings plan to pay the mortgage off. how we could do this is I don't know as we were in debt.

does this make sense do I have a claim ?