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fixed mortgages should banks gain from their sub-prime fiasco - Page 11

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fixed mortgages should banks gain from their sub-prime fiasco

edited 27 March 2014 at 12:01PM in Mortgages & Endowments
153 replies 8.2K views
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  • Thank you very much for the thread, There is no way I could have compiled that but most of the detail I remember.
    I cant help but think it was a shame we moved away from the safety nets that had proved so successful in the past.
    I do agree that timing was what let me down and had my nationwide mortgage terminated later I would be laughing.
  • That what 35 yrs in the business does.


    I must admit I did think the rise in house prices was unsustainable and when I saw Sub Prime rates at time lower than Prime I really began to worry. However it's a bit like the "King's new clothes" we only see what we want to see but like everyone else I sat back and watched my house jump in value. Really it was just like the Dire Straits song "Money For Nothing" In my view the anthem of the 90's.


    Re the LCE shortfalls, like everything hindsight is a wonderful thing. All the marketing support showed past performance and was always followed by the disclaimer " Past performance is no guarantee to future returns" yet they always seemed to be able to go 25 yrs into the future with their illustrations. I had 3 policies myself and fortunately broke even in 2 and lost £700 on the last. However I also have to bear in mind that the monthly mortgage payment I made had reduced whilst rates were low so perhaps if I had applied to savings on I made on my monthly payments to my mortgage balance I may have ended up in profit. However it's more fun to spend the savings on more exiting things and perpetuate the economic boom.
  • 007stuart wrote: »
    That what 35 yrs in the business does.


    I must admit I did think the rise in house prices was unsustainable and when I saw Sub Prime rates at time lower than Prime I really began to worry. However it's a bit like the "King's new clothes" we only see what we want to see but like everyone else I sat back and watched my house jump in value. Really it was just like the Dire Straits song "Money For Nothing" In my view the anthem of the 90's.


    Re the LCE shortfalls, like everything hindsight is a wonderful thing. All the marketing support showed past performance and was always followed by the disclaimer " Past performance is no guarantee to future returns" yet they always seemed to be able to go 25 yrs into the future with their illustrations. I had 3 policies myself and fortunately broke even in 2 and lost £700 on the last. However I also have to bear in mind that the monthly mortgage payment I made had reduced whilst rates were low so perhaps if I had applied to savings on I made on my monthly payments to my mortgage balance I may have ended up in profit. However it's more fun to spend the savings on more exiting things and perpetuate the economic boom.

    We cashed our endowments in and paid them off the repayment mortgage in lump sums every year. We had to take out life cover also.
    We were not aware at the start as a) we were green and b)it was not explained but the life cover side of the endowment went up every year so less was getting invested and this got quite steep.
    We had a Standard Life endowment which came with a so called guarantee, this had stipulations attached which were not met.
    They then came out with another promise which they then said could be withdrawn at any time. I have no idea what their current policy is.
    At one stage I was paying about 75% of my wages and now still pay 50%

  • If you succeed in your complaint, then please share. My bank have also been implicated in the credit crunch saga and I may have a few cases against them then:

    Great news received today from the FOS.
    They have concluded in my favour and have instructed Barclays/Woolwich to come up with a compensation package to 'reflect' the losses incurred.
  • Unbelievable!
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreetkingstreet Forumite
    36.3K posts
    Ninth Anniversary 10,000 Posts Photogenic I've helped Parliament
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    I'm astounded.

    On what grounds was your complaint upheld?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • dunstonhdunstonh Forumite
    101.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    I'm not sure what I am most astounded by. a) the outcome, if true or b) the fact a complaint like this got turned around in under 8 weeks.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • GMSGMS Forumite
    5.4K posts
    If you have had a complaint upheld on the basis of getting what you asked for but not being offered a crystal ball by the lender then there will be no mortgages offered in future.

    Lenders could not risk the claims when the borrower changes their minds and is backed by the adjudicator.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Let_Us_SeeLet_Us_See Forumite
    1.3K posts
    I have nothing against banks getting their comeuppance, but this seems too good to be true in outcome and time frame. I imagine this would be a groundbreaking decision for many banks and yet so little publicity?
  • dunstonh wrote: »
    I'm not sure what I am most astounded by. a) the outcome, if true or b) the fact a complaint like this got turned around in under 8 weeks.

    I first contacted the FOS on the 14th January, so this has taken 16 weeks plus for a decision to be reached.
    Once again incorrect assumptions on your behalf that lead other sheeple to jump on your bandwagon.

    The time scale given was 12 weeks but I shan't complain.

    Looking at responses it appears very difficult for many in the financial circus to understand when the are in the wrong.
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