Mortgage debacle - where to stop??

987turbo

Hi Guys,

First post - I knew we'd get here one day!  

I am looking for some advice, as I just don't know where to stop!

I will try to keep it as short as possible:

Four years ago, a flagship high street bank in the UK took me and my wifes names from our joint mortgage application, combined them by giving me her middle name, then deleted all record of my wife.

They then proceeded to set me up with a Sole Mortgage  some 11 x my net income and proceeded with their open banking obligations with the inevitable impact on my ability to refinance debt from that point.

I noticed this in December and have been seeking advice.  Solicitors (over the phone) said FOS route for contract breach and ICO for GDPR.  FOS were sent a pack yesterday after the standard complaint  process completed.  ICO will follow.

My niggle is though - then when I spoke to the FOS helpline, the chap on the phone said they probably won't seek to void the contract, only to put me back to where I was before the mistakes.  He mentioned court for breach of contract.

I guess my view is that trying to undo (and calculate) the impact this has had in four years (it's a lot) may be impossible, whereas IF it were a breach of contract, that would be more cut and dry?

Do I stop for now and let the FOS do their thing, or am I missing something important at this point?🤔

No one I ask has ever heard of anything like this so I thought of Moneysavingexpert.

(Hope this in the right place too)

🙏 Thanks guys,

JR

[Deleted User]

There hasn't been a breach of contract but an error in the way the account was set up, from what you say. 

The ideal solution is that they establish the mortgage in two names and amend credit files accordingly.

What details appeared on the final agreement that you signed? i.e at what point was the error made - before or after you accepted the offer?

987turbo

The documentation is all correct. They have apologised and reported the GDPR breach so far.

987turbo

So - after - to be clear. :-)

MWT

Restoring you to the position you were in before the errors is the normal standard you should expect.

Can you evidence any damage you have suffered as a result of the errors?

If so, that should also have been included in your complaint...

ACG

When you say you want the contract voided, are you saying you want them to write off the mortgage balance? If you are, you have no hope and you are being unreasonable. Is that why it has gone to the ombudsman? Has the lender offered to correct it but you have refused because you want them to write the debt off? 

It is a mistake - a big one granted - but it is not intentional. 

Financial services have a duty to put you in the position you would have been had the mistake not happened. Where it is impossible to work that out they will offer compensation in lieu.  

It has been 4 years and you only noticed in December? So they have had 8 weeks... It should not be difficult to work out how much out of pocket you are as it does not appear there has been any problem until 8 weeks ago?

987turbo

Thanks guys,
The impact, in retrospect, was a spiral that nearly went wrong, trying to sell house (twice) etc. Etc. Head in sand. Not knowing why finance was so hard etc.  We had a lot on balance transfer cards after building an extension and i ran out of juggle room. Was offered £1200 credit limit instead of the usual £20k.  Tried to go to a loan instead but offered 11.5% APR... Naivety bites!
The void of contract idea was just a way to simplify things I guess.  Void contract, write new one, return interest for intervening period, pay off credit cards, live happily ever after lol.
No I haven't asked that they write off Mortgage.  Just some of the interest I've paid in 4 yrs! 😬 

[Deleted User]

They'll only write off some of the interest if you can evidence that they have charged you more than in the agreement, but that doesn't seem to be the case.

ACG

OK, that clarifies things - you would be surprised as some of the demands we see on here from people. 

For it to go to the ombudsman, it either meant they rejected your complaint or you could not agree on an acceptable outcome. I dont think they would have rejected the complaint.

What did they offer before they referred it to the ombudsman. Correcting the contract and providing some compensation for higher interest rates does not seem unreasonable. I suppose their argument is there is no guarantee you would have got better rates but it is probably safe to assume their mistake played at least a part in that. 

987turbo

Absolutely, 
They offered me £450 for phonecalls, distress and inconvenience. Which was nice of them - but it is more complex than that, no doubt!  I guess I have my answers though so thanks guys. It isn't a breach of contract,  so no easy way out.  The ombudsman is the correct route, so aside from trying to evidence some of the impacts that the affordability implications had, I've done the right thing.  I have no doubt whatever happens will be a fair outcome now that the Ombudsman is involved.  The whole thing was extra sour if I am honest due to us having signed a very long mortgage deal to be Brexit proof and they did this.  So they got the higher interest rates tied in, and I hot a world of trouble to deal with!

Ho hum.

Cheers guys

getmore4less

I am a little confused here

987turbo said:

Hi Guys,

First post - I knew we'd get here one day!  

I am looking for some advice, as I just don't know where to stop!

I will try to keep it as short as possible:

Four years ago, a flagship high street bank in the UK took me and my wifes names from our joint mortgage application, combined them by giving me her middle name, then deleted all record of my wife.

They then proceeded to set me up with a Sole Mortgage  some 11 x my net income and proceeded with their open banking obligations with the inevitable impact on my ability to refinance debt from that point.

I noticed this in December and have been seeking advice.  Solicitors (over the phone) said FOS route for contract breach and ICO for GDPR.  FOS were sent a pack yesterday after the standard complaint  process completed.  ICO will follow.

My niggle is though - then when I spoke to the FOS helpline, the chap on the phone said they probably won't seek to void the contract, only to put me back to where I was before the mistakes.  He mentioned court for breach of contract.

I guess my view is that trying to undo (and calculate) the impact this has had in four years (it's a lot) may be impossible, whereas IF it were a breach of contract, that would be more cut and dry?

Do I stop for now and let the FOS do their thing, or am I missing something important at this point?🤔

No one I ask has ever heard of anything like this so I thought of Moneysavingexpert.

(Hope this in the right place too)

🙏 Thanks guys,

JR

Was this a new application that you approved after they had messed up the names.
or
was the change made after you had accepted, during set up, then you just did not notice when the final paperwork came through or for 4 more years?