Mis-sold repayment only mortgage

sarahstar77 · 13 October 2018 at 1:27PM

Hi everyone,

This is my first post. Was after some advice or to be pointed in the right direction please.
My in laws I believe have been mis-sold a repayment only mortgage. My FIL was compulsory retired (prior to 2010 when legal) and he was the only income source. The bank briefly extended the mortgage when it came to the end of the term and they had to put their house up for sale. This proved challenging and with the threat from the bank me and my husband have taken on a mortgage in our names. Essentially is there a body that I can contact who would look into this if I got all the facts together. I just feel that it was irresponsible lending as it was for a home renovation and they were previously mortgage free, it has caused a lot of stress and upset. Shouldn’t they have looked at their age and the potential for loss of income?

Thanks in advance
Sarah

MoneyGeoff · 13 October 2018 at 2:12PM

You are jumbling up terminology. Is it a Repayment mortgage or an Interest Only mortgage?

AnotherJoe · 13 October 2018 at 3:16PM

How much money did the house cost your parents?
What was it valued at when you took out a mortgage on it?
And yes did you mean an interest only mortgage ? Or a repayment mortgage ?

P.s are you applying for power of attorney for your in laws since you obviously think they werent able to manage their own finances ten plus years ago so they must be well past it now.

Thrugelmir · 13 October 2018 at 4:11PM

sarahstar77 wrote: »

The bank briefly extended the mortgage when it came to the end of the term and they had to put their house up for sale. This proved challenging and with the threat from the bank me and my husband have taken on a mortgage in our names.

Your in-laws should have taken action earlier. Simply defaulting at the end of the mortgage term is entirely down to them. Lenders are under no obligation to offer a further mortgage. Seems as if the lender offered a period of grace. The fact that property failed to sell is not the lenders issue. As any property will sell if priced correctly.

Keep_pedalling · 13 October 2018 at 4:30PM

There are ambulance chasers out there who will pursue such claimed, but what evidence do you have that it was mis-sold rather than, as in most cases, mis-bought?

csgohan4 · 13 October 2018 at 4:32PM

Thrugelmir wrote: »

Your in-laws should have taken action earlier. Simply defaulting at the end of the mortgage term is entirely down to them. Lenders are under no obligation to offer a further mortgage. Seems as if the lender offered a period of grace. The fact that property failed to sell is not the lenders issue. As any property will sell if priced correctly.

Well said, to the point and something which the OP won't want to hear

your parents are also adults and will have to take responsibility for their action or lack of in this case.

Also not being able to sell the house is due to price, every house sells for a 'realistic' price

dunstonh · 13 October 2018 at 6:09PM

My in laws I believe have been mis-sold a repayment only mortgage.

That is very hard to do. Indeed, I think it is one of the first times I have seen such a complaint.

I just feel that it was irresponsible lending as it was for a home renovation and they were previously mortgage free, it has caused a lot of stress and upset. Shouldn’t they have looked at their age and the potential for loss of income?

When was this? (banks were non-advised until relatively recently - i.e. they didnt give advice. They just took instruction).
Did the bank force the lending on them or did they approach the bank to borrow the money?

Everybody, whether you are aged 20 or 60 has the potential for loss of income. That is why advisers recommend insurance is taken out to protect you against that event. If you choose not to have it and the risk event happens then its your own fault. It doesnt make the mortgage missold.

The ombudsman has criticised the ambulance chasers for putting in bad mortgage complaints. So, I am sure you could find an ambulance chaser. However, nothing said so far indicates any wrong doing. Although we are very light on information.

ACG · 13 October 2018 at 6:28PM

Shouldn’t they have looked at their age and the potential for loss of income?

A lender would not be able to decline a Mortgage on health grounds. In the same way they can not decline it based on race, religion.

If your parents health was an issue, they should have thought about it.
If your parents health could have been an issue (and that goes for anyone) they should have looked to take out income protection insurance. In reality we discuss this with every customer and less than half opt for it.

mrginge · 13 October 2018 at 7:01PM

ACG wrote: »

A lender would not be able to decline a Mortgage on health grounds. In the same way they can not decline it based on race, religion.

Are you absolutely sure about this?

Since when was health a protected characteristic?

csgohan4 · 13 October 2018 at 7:09PM

ACG wrote: »

A lender would not be able to decline a Mortgage on health grounds. In the same way they can not decline it based on race, religion.

If your parents health was an issue, they should have thought about it.
If your parents health could have been an issue (and that goes for anyone) they should have looked to take out income protection insurance. In reality we discuss this with every customer and less than half opt for it.

Insurance is useless when you don't use and a life saver when you need it.

I have income insurance for this very reason and I hope I don't need to use it.

People who chose to spend this money on a night out instead are unwise than thinking ahead

ACG · 13 October 2018 at 7:14PM

mrginge wrote: »

Are you absolutely sure about this?

Since when was health a protected characteristic?

I seem to recall years ago a Mortgage lender used to ask about HIV or Aids and was told to remove the question - I could be wrong but it is somewhere in the back of my mind.

It is funny how not one single lender asks about health, smoking, race, religion, sexuality and so on.

Mis-sold repayment only mortgage

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