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    • Bala99
    • By Bala99 15th Oct 19, 10:44 PM
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    Bala99
    Mortgage Missold?
    • #1
    • 15th Oct 19, 10:44 PM
    Mortgage Missold? 15th Oct 19 at 10:44 PM
    Started out thinking that I might be able to look into a particular mortgage we had which we were sure wasn’t calculated correctly.
    We have a credit showing on the account after the mortgage was paid off.

    We have queried it a couple of times and was told it wasn’t really there.

    Then started reading about missold interest only mortgages.
    We currently have one.
    One of the things that I was reading was if an interest only mortgage was taken out and the term was beyond retirement age then it was missold.

    Mortgage goes on till my partner is in his 70s. Even I will be beyond retirement.

    I know we should have thought about it when we took it out but no one said anything and I will be honest it never crossed our minds.
    First time I actually thought about paying the mortgage off in retirement was when I read about it today.

    I know it is obvious but at the time we took the mortgage out in our defence we had 2 under 2s and my brain was mush and we were completely sleep deprived.

    What exactly does it mean having been missold a mortgage and can you actually be compensated for it.

    Thanks for reading and thanks in advance for any advice.
Page 1
    • worried jim
    • By worried jim 15th Oct 19, 10:47 PM
    • 10,915 Posts
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    worried jim
    • #2
    • 15th Oct 19, 10:47 PM
    • #2
    • 15th Oct 19, 10:47 PM
    I don't think anyone has been compensated and it's just turning into a scam by the claims management companies after ppi has finished. What could you be compensated for? The roof over your head has cost less than if you had rented it, a win in most peoples book.
    • SonOf
    • By SonOf 15th Oct 19, 11:26 PM
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    SonOf
    • #3
    • 15th Oct 19, 11:26 PM
    • #3
    • 15th Oct 19, 11:26 PM
    Then started reading about missold interest only mortgages.
    Which is virtually a non-issue with the FSCS and FOS both criticising CMCs for trying to drum up baseless complaints. The FSCS uphold rate on mortgages has dropped into single digit success rate.

    One of the things that I was reading was if an interest only mortgage was taken out and the term was beyond retirement age then it was missold.
    No. Not necessarily.

    1- It only applies to advised sales. not non-advised sales (most banks were non-advised until 2012)
    2 -mortgages were not regulated until Oct 2004 - So, only after that date
    3 - an adviser could cover this off with a short risk warning in their closure letter
    4 - there can be justifiable reasons. e.g. go beyond retirement age to keep the payments lower with the intention of using part of the pension tax free cash to pay it off.

    What exactly does it mean having been missold a mortgage and can you actually be compensated for it.
    Most complaints fail. Usually for being out of scope for consideration (pre-regulation and non-advised being most common). Of those that can be considered, most of those fail too. When complaints win, there is often no redress as the value of the property is often taken into account and how that has gained over the years.

    A recent FOS decision said that redress would only be payable if the house was sold within the next 12 months at market value and if the value was less than the purchase price plus costs. The FOS is wise to these try-it-on complaints.

    It will consider genuine complaints though. Some do succeed but its very low numbers.

    There isn't enough info on yours to say. It would help to know when you bought the mortgage and if it was advised or non advised and whether you used a broker or a bank. And if the risk warning about retirement was in your closure letter.
    • Bala99
    • By Bala99 15th Oct 19, 11:44 PM
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    Bala99
    • #4
    • 15th Oct 19, 11:44 PM
    • #4
    • 15th Oct 19, 11:44 PM
    It was definitely after 2004.

    We were with the mortgage company and had come to the end of our fixed rate repayment and I rang them up to see if there was a better rate we could be on.

    It was lower payments but wasn’t actually that much different at the time. We were put on an interest only tracker a few % above base.

    [B]What would I be compensated for?[B]

    That was my question.

    I was reading about it all on moneyadviceservice (which I thought was a not for profit type site) and FOS websites and was trying to get my head round it.

    Hadn’t clicked on the mortgage reclaim type websites.
    • Bala99
    • By Bala99 16th Oct 19, 12:05 AM
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    Bala99
    • #5
    • 16th Oct 19, 12:05 AM
    • #5
    • 16th Oct 19, 12:05 AM
    The only thing I can remember is it was all done with one phone call.

    Don’t even think we received anything to say we had changed the type of mortgage we had apart from a letter stating our new monthly payments.
    • LABMAN
    • By LABMAN 16th Oct 19, 12:07 AM
    • 1,208 Posts
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    LABMAN
    • #6
    • 16th Oct 19, 12:07 AM
    • #6
    • 16th Oct 19, 12:07 AM
    There's nothing wrong with still paying a mortgage when you retire. If you were renting you'd be still paying. I've retired and have more income via pensions than I ever had when working.
    • Davy Jones II
    • By Davy Jones II 16th Oct 19, 7:00 AM
    • 411 Posts
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    Davy Jones II
    • #7
    • 16th Oct 19, 7:00 AM
    • #7
    • 16th Oct 19, 7:00 AM
    It’s not clear what loss you believe that you have suffered, what exactly is it that you believe that you should be compensated for?
    • SonOf
    • By SonOf 16th Oct 19, 10:37 AM
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    SonOf
    • #8
    • 16th Oct 19, 10:37 AM
    • #8
    • 16th Oct 19, 10:37 AM
    It was definitely after 2004.

    We were with the mortgage company and had come to the end of our fixed rate repayment and I rang them up to see if there was a better rate we could be on.
    It isnt the date of the deal that matters. From what you have said, you already had the mortgage and this was the purchase of a new deal. New deals do not change the repayment type. So, you would have been on interest only before that deal.
    • foxy-stoat
    • By foxy-stoat 16th Oct 19, 10:47 AM
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    foxy-stoat
    • #9
    • 16th Oct 19, 10:47 AM
    • #9
    • 16th Oct 19, 10:47 AM
    You better start concentrating on your re-payment vehicle rather than chasing non existent compensation.
    • phillw
    • By phillw 16th Oct 19, 11:16 AM
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    phillw
    New deals do not change the repayment type.
    Originally posted by SonOf
    Why not? Lenders who encourage you to move from interest only to repayment are just putting you on a new deal.
    • SonOf
    • By SonOf 16th Oct 19, 11:32 AM
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    SonOf
    Why not? Lenders who encourage you to move from interest only to repayment are just putting you on a new deal.
    Originally posted by phillw
    That is a separate transaction and under MMR, it would require more work (information gathering, analysis, risk warnings issued and a new closure letter). So, certainly feasible for it to happen in interest-only to repayment basis but there is no logic for it to happen in the other direction.
    • Bala99
    • By Bala99 16th Oct 19, 3:31 PM
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    Bala99
    It’s not clear what loss you believe that you have suffered, what exactly is it that you believe that you should be compensated for?
    That is what my question was. I was asking what I would be compensated for and how if any you went about it.

    I am agreeing it does seem strange but it was only reading on the FOS site that you were missold your mortgage if it went into retirement age that set me off researching this more.

    I know I didn’t have any paperwork apart from what my new payment would be.

    I thought these mortgage claims companies were checking if you had been on the correct interest rates or the monthly payments were worked out correctly etc. I only started reading up on things because of this credit that is showing on my credit file etc that the mortgage company dismisses whenever I have asked about it.

    I also had a mortgage years ago which I know they overcharged me and quite the mortgage company frankly didn’t know what they were doing.
    I knew someone who worked in the mortgage department who said it was chaos and I thought if someone could go over the statements it would be good.
    But it is too early for them to look at
    • SonOf
    • By SonOf 16th Oct 19, 3:58 PM
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    SonOf
    I am agreeing it does seem strange but it was only reading on the FOS site that you were missold your mortgage if it went into retirement age that set me off researching this more.
    Where does it say that? The FOS generally use less specific words. such as "you may have been missold it...". Rarely would it say you have been missold if.....

    Mortgages into retirement are allowed. It is a potential missale if the risk warnings were not present and it was an advised case (but not a non-advised case) and there was no reason for it. However, for most of these there is a reason documented (such as lower affordbility now and intention to pay the small amount outstanding from pension lump sum).

    I know I didn’t have any paperwork apart from what my new payment would be.
    Which suggests it is a non-advised sale.

    I thought these mortgage claims companies were checking if you had been on the correct interest rates or the monthly payments were worked out correctly etc. I only started reading up on things because of this credit that is showing on my credit file etc that the mortgage company dismisses whenever I have asked about it.
    Mortgage claims by CMCs have been hit by fraud and unscrupulous companies obtaining funds by other means. Such as litigation funding. They need as many people to sign up as possible to then get crowdfunding investors interested. The investors end up losing most of their money when the complaints fail but the company has creamed off the money after stringing them along for a number of years. Or they tell people that they have been missold but then come back to them saying their solicitor needs paying for and then an insurance policy needs to be bought to protect the solicitor for losses. This is where they make most of their money.

    The actual uphold rate on mortgages is only around 1 in 10.

    We still need to when (approx) you first bought the interest only mortgage. Not a remortgate or a new deal. The date you actually first borrowed the money on interest only basis. it makes a big difference. We know you bought a deal after 2004 but its the original deal that matters.
    • Bala99
    • By Bala99 17th Oct 19, 12:17 AM
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    Bala99
    I took out the repayment mortgage in 2000 and then it got changed to interest only probably around 2007.

    I have found the paperwork relating to when we got the mortgage and it was definitely repayment.
    [QUOTE]We still need to when (approx) you first bought the interest only mortgage. Not a remortgate or a new deal. The date you actually first borrowed the money on interest only basis[QUOTE]

    I didn’t “buy” an interest only mortgage we were swapped onto it after our original fixed rate ended in around 2008/2009

    I probably still have the paperwork but it is in a different box I haven’t come across yet
    • SonOf
    • By SonOf 17th Oct 19, 10:46 AM
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    SonOf
    Thanks for the date updates. It does change things.
    I suggest you go find the paperwork as a move to interest-only around 2007 from a repayment mortgage is highly unusual and would normally only occur if you were having affordability problems. If that is not the case, then you have good grounds to question it.
    • Bala99
    • By Bala99 18th Oct 19, 9:04 AM
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    Bala99
    I do have all the paperwork around. Because it is my existing mortgage I haven’t got rid of anything and I do know that it was done over the phone with one phone call.

    I was just looking for a better deal after our initial one had run out.

    I didn’t really question it.

    I don’t have a pension. I have dipped in and out of self employment. (Children and disability).

    My partner did have a good pension but was diagnosed with terminal cancer so cashed it in to travel before he became too ill.
    A lot of it went on an operation that would buy him more time that we couldn’t get through the NHS so what might have been in place to pay a mortgage after retirement isn’t there anymore
    Plus without selling the house we have no way of paying the mortgage back
    • SonOf
    • By SonOf 18th Oct 19, 12:44 PM
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    SonOf
    My partner did have a good pension but was diagnosed with terminal cancer so cashed it in to travel before he became too ill.
    A lot of it went on an operation that would buy him more time that we couldn’t get through the NHS so what might have been in place to pay a mortgage after retirement isn’t there anymore
    Plus without selling the house we have no way of paying the mortgage back
    Did the switch to interest-only coincide with that period? I wonder if it was a case to make it more affordable on a monthly basis and allow the life assurance to pay it off upon death?
    • antrobus
    • By antrobus 18th Oct 19, 4:47 PM
    • 16,900 Posts
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    antrobus
    In January 2018;

    ...
    Household income of 6 figures. I am on after tax around £40k per year.....
    Originally posted by Bala99
    https://forums.moneysavingexpert.com/showpost.php?p=73731837&postcount=13
    • NCC-1701
    • By NCC-1701 19th Oct 19, 9:17 AM
    • 466 Posts
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    NCC-1701
    I well remember Jackanory.
    • Lover of Lycra
    • By Lover of Lycra 19th Oct 19, 10:37 AM
    • 495 Posts
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    Lover of Lycra
    Thanks for the date updates. It does change things.
    I suggest you go find the paperwork as a move to interest-only around 2007 from a repayment mortgage is highly unusual and would normally only occur if you were having affordability problems. If that is not the case, then you have good grounds to question it.
    Originally posted by SonOf
    Really? I thought lenders were still quite happily dishing out I/O mortgages in 2007 which is why it all went tits up the following year.
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