HELP - Interest only mortgage purchased when I was 19

missile

"Put the rent up or sell and take the hit."

user1977

dunstonh said:

I've only recently understood how badly I was misled in this mortgage 22 years later it's now worth £80k (so negative equity) and costs me £795 a month (currently tenanted). I've paid nothing off it in all that time despite monthlys of 798£.

c) your conveyancing solicitor would have warned you.

Can someone please advice can I take any action towards misselling?

At the point you bought, your solicitor would have given you the warnings as they appeared on the contract and you would have accepted those warnings and proceeded.

Some people chose not to take solicitor advice and just do basic conveyancing to try and save money.

Hold on - in which era were solicitors ever instructed (or expected) to give advice about the particular mortgage product their client has gone for? Solicitors' advice is generally just about the fact the property is at risk of repossession and the mortgage conditions which relate to what you can do with the property, I don't remember ever seeing instructions to look at what deal the client has got and trying to give advice about its suitability, method of repayment etc.

silvercar

OP can’t sell and take the hit if they have no cash to fund the difference between the mortgage amount and the sale price!

you need to review your outgoings, I don’t understand why you have a primary mortgage elsewhere, but one option may be handing the keys back.

missile

silvercar said:

OP can’t sell and take the hit if they have no cash to fund the difference between the mortgage amount and the sale price!

you need to review your outgoings, I don’t understand why you have a primary mortgage elsewhere, but one option may be handing the keys back.

We only have part of the story:
"Single parent with five kids" = I am guessing she had a husband who owned a house?

RelievedSheff

Sorry but this is not miss selling. You took out a mortgage 22 years ago.

That is a lot of time to find out what you signed up for.

You have absolutely zero case for recourse or compensation. 

dunstonh

Hold on - in which era were solicitors ever instructed (or expected) to give advice about the particular mortgage product their client has gone for?

Where did you get that from my comment? I certainly didn't say that.
Solicitors have not given advice on mortgage products.   However, they confirm you are aware of the risk warnings in the contract.    This includes interest only warnings.

Hoenir

silvercar said:

OP can’t sell and take the hit if they have no cash to fund the difference between the mortgage amount and the sale price!

you need to review your outgoings, I don’t understand why you have a primary mortgage elsewhere, but one option may be handing the keys back.

If there's equity in the primary property. Then sell it first. Followed by the BTL. Reset the clock. Start over. 

Handing the keys back achieves nothing. 

jamesd

The implied interest rate seems high. Have you actually asked a broker about a replacement BTL mortgage?

Other potential options include:

1. Asking about porting the mortgage you have on your current home to this one, moving there and selling the place where you currently live.

2. Seeking more borrowing secured on your current home to use to reduce the borrowing on the letting one. This might increase your net income by reducing apparently high interest costs.

Reducing the amount borrowed on the expensive letting mortgage seems highly desirable.

rigbyj03

sammyjammy said:

Do the rental payments not cover the mortgage?  Was this mortgage changed to buy to let at some stage?

Yes they equal the exact amount, no profit. yes the mortgage was given "permission to let" but not changed to a buy to let