Reclaiming Mortgages

Dtrewolla

I am seeing an increasing number of adds to reclaim mortgages- especially interest only. Is this as legitimate as PPI claims, has anyone done this?

dunstonh

Is this as legitimate as PPI claims

No.   A good number of the firms in this field leave a lot to be desired.  So much so that the FSCS recently spoke out about the number of try-it-ons.   The success rates on these types of complaints was already low but the try-it-ons/fraudulent complaints have taken it down to low single digit success rates.

I suggest you check the reclaims section as well as there are a large number of threads that discuss this.  This includes people who have been told they have a case and some made up figure is given despite no details on the mortgage being requested from the lender and in some cases, the made up figure has been bigger than the mortgage or the amounts repaid so far.       A common outcome is to be told you have a case but you need to pay an insurance.  That is where they make their money.  Not the successful cases which are rare.

As with all these things, there are some successful cases.   The FOS have said their main concerns have been Sub Prime mortgages used when prime was available or where there was debt consolidation but it was not financially sensible to do it.  They do not have a concern with interest only mortgages sold before the credit crunch as the regulator allowed it.

There is also the issue that mortgages were not regulated prior to October 2004.  So, its a very limited window.

MWT

Read here for more details from the Ombudsman...

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/mortgages/interest-only-mortgages

Even where the cases are won, they do not result in 'windfall' cash compensation so there isn't a strong revenue stream for these claim companies, it is mostly an excuse to sell you an insurance policy.

On that same link above use the option to review previous case decisions and see what is really involved even if you win...