»

Missold mortgage. Compensation anyone?

New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: NEW MSE Coronavirus Guides

NEWSFLASH 31/3
RESCUE FLIGHTS FOR STRANDED BRITS * SCHOOL MEALS VOUCHERS * BRIGHTHOUSE COLLAPSES

Missold mortgage. Compensation anyone?

6 replies 114 views
geekgeekgeekgeekgeekgeek Forumite
3 posts
First Post
MoneySaving Newbie
Anyone successfully completed a claim in relation to a mortgage being missold? How was the process and what were you compensated for? Did you go through a company offering this service through no win no fee?

Replies

  • MoneyineptitudeMoneyineptitude Forumite
    26K posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Waste of time and (potentially) very expensive. 

    Companies offering this "service" often want payment upfront in what amounts to advance fee fraud. 

    Why do you feel your mortgage was mis-sold? 
  • zx81zx81 Forumite
    26.9K posts
    Ninth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    Extremely rare.  And compensation even rarer.

    If you feel you were mis sold. simply send your complaint into your lender.  No need to pay a company to buy the stamp for you, especially if you have email.
  • geekgeekgeekgeekgeekgeek Forumite
    3 posts
    First Post
    MoneySaving Newbie
    I was sold the mortgage via an IFA and understand that people can make claims if it is found they are advised incorrectly and another mortgage with a lower interest rate was available at the time. Anyone had any practical experience of this?
  • zx81zx81 Forumite
    26.9K posts
    Ninth Anniversary 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    You would make your complaint to the IFA.  However, before doing so, check the paperwork to see why he recommended that particular mortgage. It;s not always to do with the rate.
  • geekgeekgeekgeekgeekgeek Forumite
    3 posts
    First Post
    MoneySaving Newbie
    Thank you. Seems like a logical step.
  • SonOfSonOf Forumite
    2.6K posts
    1,000 Posts Second Anniversary
    ✭✭✭✭
    The uphold rate on mortgage missold complaints is very low.    Indeed, the FSCS recently criticised claims companies for putting in try-it-on complaints with no case to answer.   Its report says: “During 2018/19 we have seen a change in claims made to FSCS with increasing volumes of mis-selling claims being provided with very little substance or evidence to support the claim being made. Due to this, these claims have a low uphold rate.”

    There is also some potentially dodgy activity in this area with some firms using mortgage claims as a reason to operate what looks like advanced fee fraud.  i.e. they tell you that they wont charge you to look at it.  Then they wait a month or two and tell you that you have a case but they need £x up front to be able to proceed but you will get back £y if you do.     There has not been a thread on this site where someone has said they have succeeded but plenty where they have said the claims company told them they had a case.

    The main reasons you dont see much about missold mortgages is that regulation of mortgages only started in October 2004.  The banks did most of their mortgages on non-advised basis pre-credit crunch. So, you cannot complain about advice that was not received.  Broker arranged mortgages were mostly advised.      The FOS generally says it has no issue with pre-credit crunch arranged interest only mortgages.   However, where it does find in favour of the consumer, they take the gain in house price into account over the period.  For many, that level of gain wipes out any potential redress.

    The FOS has concerns and dealt with issues where mortgages arranged on a sub prime basis where a prime lender would have lent the  money or where short term debts were added to the mortgage with insufficient justification (adding debts to mortgages is fine but not all debts are justified in doing so)


Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support