Missold interest only mortgage

[Deleted User] · 29 September 2019 at 2:50PM

Dboyd67 wrote: »

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

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 · 29 September 2019 at 3:18PM

[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 · 29 September 2019 at 9:37PM

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.

[Deleted User] · 29 September 2019 at 9:40PM

Dboyd67 wrote: »

I was without doubt missold

You really really really were not.

SonOf · 29 September 2019 at 10:19PM

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 · 29 September 2019 at 10:38PM

Dboyd67 wrote: »

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.

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

waamo · 30 September 2019 at 6:00AM

Dboyd67 wrote: »

our FA said my civil service pension would cover the mortgage.

Does your pension cover the mortgage?

Dboyd67 · 30 September 2019 at 7:20AM

Nowhere near it 🙄

phillw · 14 October 2019 at 3:31PM

Dboyd67 wrote: »

We have certainly never had loads of money left over at any time,

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.

Dboyd67 wrote: »

Nowhere near it &#55357;&#56900;

How far are you away from drawing your pension?

SonOf · 14 October 2019 at 3:48PM

Dboyd67 wrote: »

Nowhere near it 🙄

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.

Missold interest only mortgage

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