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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 2
    • lincroft1710
    • By lincroft1710 29th Sep 19, 2:40 PM
    • 12,389 Posts
    • 10,988 Thanks
    lincroft1710
    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 ��
    Originally posted by Dboyd67
    I didn't become mortgage free until I was 68!
    • Lover of Lycra
    • By Lover of Lycra 29th Sep 19, 2:50 PM
    • 577 Posts
    • 1,444 Thanks
    Lover of Lycra
    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
    Originally posted by Dboyd67
    In 2003 it's not likely you would have been offered an endowment or insurance. What were you expecting to use to repay the capital at the end of the mortgage term?

    I know quite a lot of people buying around that time said they were going to put x into an ISA every month and then didn't.
    • The Fat Controller
    • By The Fat Controller 29th Sep 19, 3:18 PM
    • 222 Posts
    • 157 Thanks
    The Fat Controller
    [QUOTE][What were you expecting to use to repay the capital at the end of the mortgage term?/QUOTE]

    That is the pertinent question, what were your plans ?
    • Dboyd67
    • By Dboyd67 29th Sep 19, 9:37 PM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    This is where I know I was niave/gullible/stupid call it what you like. our FA said my civil service pension would cover the mortgage. As said in earlier post we were just grateful to get a mortgage as never thought about buying only ever rented. So having read all the comments I will toddle off with my tail between my legs and just accept we made a bad decision.
    • Moneyineptitude
    • By Moneyineptitude 29th Sep 19, 9:40 PM
    • 25,025 Posts
    • 14,495 Thanks
    Moneyineptitude
    I was without doubt missold
    Originally posted by Dboyd67
    You really really really were not.
    • SonOf
    • By SonOf 29th Sep 19, 10:19 PM
    • 1,885 Posts
    • 2,140 Thanks
    SonOf
    I will toddle off with my tail between my legs and just accept we made a bad decision.
    Or a good one as you had financial problems which would have been a lot worse had your mortgage payments been several hundreds of pounds more per month.

    The good news is that since 2008/9, interest rates have been so low, that you have had plenty of time to overpay.
    • AnotherJoe
    • By AnotherJoe 29th Sep 19, 10:38 PM
    • 16,363 Posts
    • 19,666 Thanks
    AnotherJoe
    This is where I know I was niave/gullible/stupid call it what you like. our FA said my civil service pension would cover the mortgage. As said in earlier post we were just grateful to get a mortgage as never thought about buying only ever rented. So having read all the comments I will toddle off with my tail between my legs and just accept we made a bad decision.
    Originally posted by Dboyd67
    The only bad decision you made was posting here.
    Taking an IO mortgage out, from what you've posted, was a GOOD decision.
    You dont appear to have been able to afford a repayment at the time, so this got you a house and thus benefited from the increase in house prices, that you wouldnt have otherwise been able to afford.
    You didnt get into further debt which you would have done with the larger repayments mortgage, and now you can see your way clear to getting out from the mortgage and not having to pay rent for the rest of your life, which may well have been the case if you didn't buy back then. Indeed maybe you'd be posting asking for compo because you weren't offered an IO mortgage back then
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • waamo
    • By waamo 30th Sep 19, 6:00 AM
    • 8,291 Posts
    • 11,355 Thanks
    waamo
    our FA said my civil service pension would cover the mortgage.
    Originally posted by Dboyd67
    Does your pension cover the mortgage?
    This space for hire.
    • Dboyd67
    • By Dboyd67 30th Sep 19, 7:20 AM
    • 7 Posts
    • 3 Thanks
    Dboyd67
    Nowhere near it 🙄
    • phillw
    • By phillw 14th Oct 19, 3:31 PM
    • 3,143 Posts
    • 2,605 Thanks
    phillw
    We have certainly never had loads of money left over at any time,
    Originally posted by Dboyd67
    So you wouldn't have been able to afford to pay either a repayment or towards an endowment even if it had been offered?

    What do you expect to get by complaining? They can only put you in a position you would have been had you not been miss-sold. I don't see an obvious way to do that.

    Nowhere near it ��
    Originally posted by Dboyd67
    How far are you away from drawing your pension?
    • SonOf
    • By SonOf 14th Oct 19, 3:48 PM
    • 1,885 Posts
    • 2,140 Thanks
    SonOf
    Nowhere near it 🙄
    Originally posted by Dboyd67
    It doesn't matter. Mortgages were not regulated until October 2004. You bought in 2003 from a third party (mortgage broker). You complained to the wrong place. However, had you complained to the right place, they would not need do consider your complaint.

    So, on multiple fronts, this is not a runner.

    1 - Mortgage broker sold pre-regulation
    2 - Doesnt appear to be missold based on what has been said by you
    3 - You have financially gained from owning a house during a period of growth
    4 - FOS not allowed to look at this complaint as it is pre-regulation. So you have nowhere to go with it.
    • Davy Jones II
    • By Davy Jones II 14th Oct 19, 7:01 PM
    • 458 Posts
    • 874 Thanks
    Davy Jones II
    I’ve three interest-only mortgages which I chose to take out to maximize my flexibility.

    Where do I get compo?
    • Miley1109
    • By Miley1109 15th Nov 19, 7:17 PM
    • 2 Posts
    • 0 Thanks
    Miley1109
    Nram interest only
    We were offered an interest only mortgage in 2009 when we were struggling with debt and had an IVA in place. We've paid the same interest rate since 2009 and our property is now in negative equity. We have no savings and cant afford to pay any more money each month to pay off some of the mortgage. Im very worried about what will happen in 6 years time when it is up. Now Nram has sold our mortgage to s finance company. Claims company has said we could have been overcharged but im not willing to sign anything as they want a credit agreement put in place. Financial advisor says the only way out is to pay more monthly. Any advice gratefully received.
    • zx81
    • By zx81 15th Nov 19, 7:20 PM
    • 24,360 Posts
    • 27,155 Thanks
    zx81
    Your financial advisor is correct.
    • Miley1109
    • By Miley1109 15th Nov 19, 7:55 PM
    • 2 Posts
    • 0 Thanks
    Miley1109
    I guess we were hoping that the house prices would rise enough in time to pay our interest free mortgage off with the proceeds of the sale. Sadly were now in negative equity along with a short lease so we need to find 3.000 to extend it. Not in a good place right now.
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