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  • FIRST POST
    • Dboyd67
    • By Dboyd67 28th Sep 19, 2:34 PM
    • 7Posts
    • 3Thanks
    Dboyd67
    Missold interest only mortgage
    • #1
    • 28th Sep 19, 2:34 PM
    Missold interest only mortgage 28th Sep 19 at 2:34 PM
    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
Page 1
    • Caz3121
    • By Caz3121 28th Sep 19, 2:42 PM
    • 12,489 Posts
    • 8,137 Thanks
    Caz3121
    • #2
    • 28th Sep 19, 2:42 PM
    • #2
    • 28th Sep 19, 2:42 PM
    have a read here
    https://www.financial-ombudsman.org.uk/businesses/complaints-deal/mortgages/interest-only-mortgages
    • lincroft1710
    • By lincroft1710 28th Sep 19, 3:06 PM
    • 12,386 Posts
    • 10,984 Thanks
    lincroft1710
    • #3
    • 28th Sep 19, 3:06 PM
    • #3
    • 28th Sep 19, 3:06 PM
    I was without doubt missold
    Originally posted by Dboyd67
    Why were you miss-sold?
    • Dboyd67
    • By Dboyd67 28th Sep 19, 3:12 PM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    • #4
    • 28th Sep 19, 3:12 PM
    • #4
    • 28th Sep 19, 3:12 PM
    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
    • By Socajam 28th Sep 19, 4:24 PM
    • 622 Posts
    • 874 Thanks
    Socajam
    • #5
    • 28th Sep 19, 4:24 PM
    • #5
    • 28th Sep 19, 4:24 PM
    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
    • By SonOf 28th Sep 19, 5:00 PM
    • 1,864 Posts
    • 2,117 Thanks
    SonOf
    • #6
    • 28th Sep 19, 5:00 PM
    • #6
    • 28th Sep 19, 5:00 PM
    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
    • By antrobus 28th Sep 19, 6:04 PM
    • 16,900 Posts
    • 23,894 Thanks
    antrobus
    • #7
    • 28th Sep 19, 6:04 PM
    • #7
    • 28th Sep 19, 6:04 PM
    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
    Originally posted by Dboyd67
    Scratches head.

    What loss have you suffered? UK average house prices are up about 50% since 2003. Your're quids in really.
    • chucknorris
    • By chucknorris 28th Sep 19, 6:58 PM
    • 10,243 Posts
    • 15,136 Thanks
    chucknorris
    • #8
    • 28th Sep 19, 6:58 PM
    • #8
    • 28th Sep 19, 6:58 PM
    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
    Originally posted by Dboyd67
    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 bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
    • Barny1979
    • By Barny1979 28th Sep 19, 7:22 PM
    • 5,354 Posts
    • 52,181 Thanks
    Barny1979
    • #9
    • 28th Sep 19, 7:22 PM
    • #9
    • 28th Sep 19, 7:22 PM
    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
    Originally posted by Dboyd67
    Jog on you joker
    2013 - 313 AFDs, 2014 - 289 AFDs, 2015 - 321 AFDs, 2016 - 276 AFDs, 2017 - 276 AFDs, 2018 - 240 AFDs 2019 - 263 AFDs up to end of November
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    • Dboyd67
    • By Dboyd67 28th Sep 19, 7:23 PM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    Well that escalated quickly
    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
    • By MovingForwards 28th Sep 19, 9:04 PM
    • 2,609 Posts
    • 3,085 Thanks
    MovingForwards
    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
    • SonOf
    • By SonOf 29th Sep 19, 12:09 AM
    • 1,864 Posts
    • 2,117 Thanks
    SonOf
    but was rather naive when we took out mortgage.
    So, when you read the risk warnings on the mortgage offer, what did you think?
    When your conveyancing solicitor went through the risk warnings with you, what did you think?

    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.
    What did you do with all the extra spending money you had between 2003 and 2012?

    I was told about claiming by a colleague but after reading some of the comments realise this may not be appropriate.
    Mortgages were not regulated until October 2004. 2003 pre-dates regulation. That is why your colleague is wrong.

    Also, the other reasons mentioned are why you see so few successful complaints about interest only.
    • AnotherJoe
    • By AnotherJoe 29th Sep 19, 7:47 AM
    • 16,351 Posts
    • 19,648 Thanks
    AnotherJoe
    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.
    Originally posted by Dboyd67
    Why another five years ? What about the extra money you had for nine years as a result of IO plus endowment costing less than repayment ? (Which is why you took it out, right, it was cheaper?)
    What did you do with that .. that would have made a substantial difference had you used it to reduce the size of your mortgage as you went along, or had you saved it you could have used that money to reduce the size if the mortgage you needed to keep the term the same.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • worried jim
    • By worried jim 29th Sep 19, 7:55 AM
    • 10,915 Posts
    • 17,221 Thanks
    worried jim
    Now the ppi bandwagon has ended all these claims management companies have staff, phones and computers sitting around doing nothing. I've already seen one tv advert encouraging the gullible that they maybe owed 1000's and to call now.

    Expect to see a lot of these threads popping up now. I do agree that interest only is up there with drinking water for product description in the name.
    • Dboyd67
    • By Dboyd67 29th Sep 19, 9:43 AM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    Missold interest only mortgage
    Just in response to some of the comments.
    I live in Scotland, so don't know if this means things are done a bit differently with respect to house buying when we bought house we met with solicitor twice, once 2 sign forms once 2 pick up keys. Discussions were between solicitor & financial advisor.
    We paid 51k in 2003, we only remortgaged in 2012 because we had a communal repair bill of 30k (We're in block of flats 1/6th split) in 2012 flat valued at 58k on remortgage, the 5 years extra mortgage was to keep monthly outgoings the same.
    What I was originally getting at was as it was interest only should i have been offered some sort of endowment/insurance
    We have certainly never had loads of money left over at any time, realise there was the 5k at remortgage but went on communal bill ( yes I know it was still profit) but 5k profit v 5 year added on....I know which I would have preferred.
    And just to end I'm not bring greedy here, I've worked hard to get where I am , really struggled to clear in debt due to personal circs. But I'm nearly there MSE threads helped a lot. But It would be nice to think i only had 8 yrs mortgage left and not 13, seem to have been buying this place forever
    • MovingForwards
    • By MovingForwards 29th Sep 19, 10:02 AM
    • 2,609 Posts
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    MovingForwards
    You must have spoken with someone to get the mortgage in the first place?

    Can you not make overpayments to reduce your mortgage and get you back on track for clearing it in 8 years rather than the full 13 year term?
    • MovingForwards
    • By MovingForwards 29th Sep 19, 10:05 AM
    • 2,609 Posts
    • 3,085 Thanks
    MovingForwards
    Have a play with this to see what the difference is between normal monthly payments and doing an overpayment, even 50 a month can trim years off.

    https://www.halifax.co.uk/mortgages/mortgage-calculator/overpayment-calculator/
    • Dboyd67
    • By Dboyd67 29th Sep 19, 10:20 AM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    It was a financial advisor that did everything for us. And your right I'm hoping in next couple of years I can overpay, otherwise I'll be 65 before it's cleared ��
    • SonOf
    • By SonOf 29th Sep 19, 11:56 AM
    • 1,864 Posts
    • 2,117 Thanks
    SonOf
    I live in Scotland, so don't know if this means things are done a bit differently with respect to house buying when we bought house we met with solicitor twice, once 2 sign forms once 2 pick up keys. Discussions were between solicitor & financial advisor.
    The solicitor would have pointed out the key risks mentioned on the offer letter with you.

    What I was originally getting at was as it was interest only should i have been offered some sort of endowment/insurance
    There was only one mainstream provider of endowments left in 2003 and they pulled out in 2004.
    Mortgage advisers are not allowed to put in place investment products. So, if you used a mortgage adviser/broker then they couldnt do that. Only if you used a financial adviser you could.

    We have certainly never had loads of money left over at any time, realise there was the 5k at remortgage but went on communal bill ( yes I know it was still profit) but 5k profit v 5 year added on....I know which I would have preferred.
    You would have had even less had you been on repayment basis.

    And just to end I'm not bring greedy here, I've worked hard to get where I am , really struggled to clear in debt due to personal circs.
    Would it be fair to say that had your mortgage been several hundreds of pounds a month more, that your debt situation would have been worse?
    • Rainbowgirl84
    • By Rainbowgirl84 29th Sep 19, 12:33 PM
    • 1,078 Posts
    • 1,842 Thanks
    Rainbowgirl84
    Re. the 65/retiring thing. I'm 67 now and have a better income via pensions than I ever had whilst working...so my mortgage would be more easily affordable now.
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