?Mortage Mis-sold

Sooz33
Sooz33 Posts: 11 Forumite
in Reclaim mortgage fees, council tax, etc
Hi All


I am looking into claiming for a potential mis-sold interest only mortgage but am unsure who to lodge my claim with.
Do I lodge it with the broker (our initial broker is no longer in business and it was passed on to a new broker who is still in business)? Or do I lodge the complaint with our lender?


Many thanks.
«1

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It would be your broker. Mis selling involves the person doing the selling.

    Do you have complaint reasons?
  • dunstonh
    dunstonh Posts: 116,318 Forumite
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    edited 25 September 2018 at 5:38PM
    I am looking into claiming for a potential mis-sold interest only mortgage but am unsure who to lodge my claim with.

    Missold interest only mortgage complaints are unusual. The FOS has been rejecting most of them with pretty much a standard response. This is why most CMCs have not got involved in this area.

    The general position is that if the mortgage was bought before the credit crunch, they will reject the interest only complaint as it was an acceptable product to have. Where they have found failings, they usually compare the position to if you had been renting (as that is the alternative). As interest rates have been so low and most people have been better off with low mortgage interest vs ever increasing rent. Plus, the take the gain in the property value into account.

    Also, mortgages were only regulated from October 2004. So, if bought before October 2004, it is pre-regulation and your complaint doesnt have to be considered. You also get no access to the FOS or FSCS.

    Most lenders stopped doing interest only on new residential mortgages after the credit crunch. So, the window is actually quite small. Bought after Oct 2004 and before the credit crunch and a wrongdoing found (having interest only is not a good enough reason for complaint).

    So, with that all in mind, why do you think you were missold?
    When did you buy the interest only mortgage?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • BoGoF
    BoGoF Posts: 7,099 Forumite
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    Doubt if OP will respond......seems to have a habit of posting questions, never to return.
  • Sooz33
    Sooz33 Posts: 11 Forumite
    Thank you to all for your responses. Our mortgage was taken out after 2004 but can't remember when the credit crunch started exactly?
    I do have my reasons and was going to try via a claims management company but thought I would try submitting a claim myself in the first instance.
    BoGoF - not sure who you mean by OP?
  • dunstonh
    dunstonh Posts: 116,318 Forumite
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    Our mortgage was taken out after 2004 but can't remember when the credit crunch started exactly?

    Autumn 2008.

    So, if you took your mortgage out before Autumn 2008, then the complaint would be expected to fail based on the uphold rate.

    All the broker really needs to have on file is evidence that they gave you the cost of both repayment and interest only and why you choose interest only along with the standard risk warnings.

    On a case recently upheld, the FOS decided the interest-only mortgage was missold and the award was a refund of the setting up costs and the exit costs of the mortgage and if the property was sold within the year, the broker would have to pay the difference between the balance of the mortgage and the selling price if in shortfall (i.e. only if property value had fallen).

    The clause about selling the property was important as it prevents people trying to make money out of the system whilst making gains in the value of the property. i.e. if the value is up, then you have gained financially.

    Why do you think you were missold?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    dunstonh wrote: »
    Most lenders stopped doing interest only on new residential mortgages after the credit crunch.
    And, presumably, for those of us who have taken on an interest-only mortgage post-crunch the pitfalls have been drummed into us by the bank.
  • dunstonh
    dunstonh Posts: 116,318 Forumite
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    JimmyTheWig wrote: »
    And, presumably, for those of us who have taken on an interest-only mortgage post-crunch the pitfalls have been drummed into us by the bank.

    Yes. The heavy warnings and lenders asking for details of repayment vehicles or intentions has allowed a lot of timebarring of complaints to take place under the 3/6 year rule.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Nasqueron
    Nasqueron Posts: 8,785 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    Sooz33 wrote: »
    Thank you to all for your responses. Our mortgage was taken out after 2004 but can't remember when the credit crunch started exactly?
    I do have my reasons and was going to try via a claims management company but thought I would try submitting a claim myself in the first instance.
    BoGoF - not sure who you mean by OP?

    OP means original poster i.e. person who created the topic
  • antrobus
    antrobus Posts: 17,386 Forumite
    Sooz33 wrote: »
    Thank you to all for your responses. Our mortgage was taken out after 2004 but can't remember when the credit crunch started exactly?

    9th August 2007 when BNP Paribas announced that it could no longer place a valuation on certain mortgage backed securities.
    Sooz33 wrote: »
    I do have my reasons and was going to try via a claims management company but thought I would try submitting a claim myself in the first instance.

    You only get one instance.
  • Sooz33
    Sooz33 Posts: 11 Forumite
    Thanks for your input BoGoF … I note you did not respond to me either when I posed a question to you. May I please ask you if you have nothing constructive to say then don't bother replying. I hardly call posting six questions a serial offender in the non-reply stakes!
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