Missold interest only mortgage

Dboyd67
Dboyd67 Posts: 7 Forumite
in Reclaim mortgage fees, council tax, etc
Hi, apologies if using wrong forum I'm new to this.
I took out interest only mortgage in 2003 which was redeemed in 2012 when I moved to a repayment mortgage.....I was without doubt missold but didn't realise I could reclaim till recently. I contacted original lender NRAM using resolver and they have responded saying they are unable to proceed with complaint as 'they are only obliged to consider incidents within last 6 years or 3 years from date I should have become aware do I have any recourse here ? All advice greatly appreciated
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Comments

  • Caz3121
    Caz3121 Posts: 15,542 Forumite
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    have a read here
    https://www.financial-ombudsman.org.uk/businesses/complaints-deal/mortgages/interest-only-mortgages
  • lincroft1710
    lincroft1710 Posts: 17,614 Forumite
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    Dboyd67 wrote: »
    I was without doubt missold

    Why were you miss-sold?
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • Dboyd67
    Dboyd67 Posts: 7 Forumite
    We used a financial adviser, 1st time buyers, honestly didn't realise consequences of interest only, I was told this was best as I was a civil servant !!! And my pension would cover me. It was joint with hubby and he didn't offer us insurance cover. Think I was just grateful to get a mortgage. Wish I knew then what I know now
  • Socajam
    Socajam Posts: 1,238 Forumite
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    Guess I was mis-sold on my mortgage too
    Got it through a broker and he only offered an endowment mortgage, since I was not earning enough
    Did not realize the consequences of this, but I educated myself and now I am mortgage free
    See the irony of this.
  • SonOf
    SonOf Posts: 2,631 Forumite
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    I was without doubt missold but didn't realise I could reclaim till recently.

    You cant reclaim. What makes you think you can?
    I contacted original lender NRAM using resolver and they have responded saying they are unable to proceed with complaint as 'they are only obliged to consider incidents within last 6 years or 3 years from date I should have become aware do I have any recourse here ?
    No.
    We used a financial adviser, 1st time buyers, honestly didn't realise consequences of interest only, I was told this was best as I was a civil servant !!

    Interest-only complaints rarely succeed. There are not many financial products that tell you exactly what they are but interest only is one of them. Effectively you are complaining that you didnt know your interest only mortgage was interest only.

    It doesnt matter though as a) NR didnt sell it to you and have no liability and b) you bought before October 2004 (pre-regulation) and c) you would have gained financially from the rise in house prices whilst having extra money to spend each month.

    Your solicitor would have gone through the offer letter with you and pointed out the risks of interest only. So, either you ignored the solicitor or you chose to bypass the solicitor to save money and say that you had read the contract letter and risk warnings yourself.
  • antrobus
    antrobus Posts: 17,386 Forumite
    Dboyd67 wrote: »
    Hi, apologies if using wrong forum I'm new to this.
    I took out interest only mortgage in 2003 which was redeemed in 2012 when I moved to a repayment mortgage.....I was without doubt missold but didn't realise I could reclaim till recently. I contacted original lender NRAM using resolver and they have responded saying they are unable to proceed with complaint as 'they are only obliged to consider incidents within last 6 years or 3 years from date I should have become aware do I have any recourse here ? All advice greatly appreciated

    Scratches head.

    What loss have you suffered? UK average house prices are up about 50% since 2003. Your're quids in really.:)
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    Dboyd67 wrote: »
    Hi, apologies if using wrong forum I'm new to this.
    I took out interest only mortgage in 2003 which was redeemed in 2012 when I moved to a repayment mortgage.....I was without doubt missold but didn't realise I could reclaim till recently. I contacted original lender NRAM using resolver and they have responded saying they are unable to proceed with complaint as 'they are only obliged to consider incidents within last 6 years or 3 years from date I should have become aware do I have any recourse here ? All advice greatly appreciated

    Jesus is this a wind up? Some of us were were joking about this on another forum board a few years ago about people taking out an interest only mortgage and claiming that they didn't know that it was an interest only mortgage! Don't you think the clue is in the name of 'interest only'?
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Barny1979
    Barny1979 Posts: 7,921 Forumite
    Name Dropper First Anniversary First Post
    Dboyd67 wrote: »
    Hi, apologies if using wrong forum I'm new to this.
    I took out interest only mortgage in 2003 which was redeemed in 2012 when I moved to a repayment mortgage.....I was without doubt missold but didn't realise I could reclaim till recently. I contacted original lender NRAM using resolver and they have responded saying they are unable to proceed with complaint as 'they are only obliged to consider incidents within last 6 years or 3 years from date I should have become aware do I have any recourse here ? All advice greatly appreciated

    Jog on you joker
  • Dboyd67
    Dboyd67 Posts: 7 Forumite
    I seem to have come across as either greedy or thick in my original post going by some of the comments 🙄 honestly I'm neither but was rather naive when we took out mortgage. When I remortgaged in 2012 as a repayment I had to take a 21 year mortgage to make my monthly repayments the same (Hope that makes sense) so effectively adding another 5 years on. I was told about claiming by a colleague but after reading some of the comments realise this may not be appropriate. Thank you for your comments, some were really helpful, some unnecessarily harsh.
  • MovingForwards
    MovingForwards Posts: 16,905 Forumite
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    The time you took your IO mortgage out is when they were nearing the end of life for people on lower incomes (now criteria is generally £75k per year income), even my ex's broker recommended one to him around the same time which he took, however monitoring the endowment policy each year showed there would be a shortfall so he swapped it to a repayment mortgage. The broker and solicitor went through all the paperwork, discussed the risks etc before the purchase completed.

    The main thing is you switched your mortgage and have dealt with getting it cleared :)
    Mortgage started 2020, aiming to clear it in 2026.
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