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  • FIRST POST
    • sarahstar77
    • By sarahstar77 13th Oct 18, 1:27 PM
    • 2Posts
    • 1Thanks
    sarahstar77
    Mis-sold repayment only mortgage
    • #1
    • 13th Oct 18, 1:27 PM
    Mis-sold repayment only mortgage 13th Oct 18 at 1:27 PM
    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
Page 1
    • MoneyGeoff
    • By MoneyGeoff 13th Oct 18, 2:12 PM
    • 150 Posts
    • 110 Thanks
    MoneyGeoff
    • #2
    • 13th Oct 18, 2:12 PM
    • #2
    • 13th Oct 18, 2:12 PM
    You are jumbling up terminology. Is it a Repayment mortgage or an Interest Only mortgage?
    • AnotherJoe
    • By AnotherJoe 13th Oct 18, 3:16 PM
    • 11,850 Posts
    • 13,818 Thanks
    AnotherJoe
    • #3
    • 13th Oct 18, 3:16 PM
    • #3
    • 13th Oct 18, 3:16 PM
    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.
    Last edited by AnotherJoe; 13-10-2018 at 3:20 PM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
    • Thrugelmir
    • By Thrugelmir 13th Oct 18, 4:11 PM
    • 61,333 Posts
    • 54,571 Thanks
    Thrugelmir
    • #4
    • 13th Oct 18, 4:11 PM
    • #4
    • 13th Oct 18, 4:11 PM
    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.
    Originally posted by sarahstar77
    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.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Keep pedalling
    • By Keep pedalling 13th Oct 18, 4:30 PM
    • 5,682 Posts
    • 6,477 Thanks
    Keep pedalling
    • #5
    • 13th Oct 18, 4:30 PM
    • #5
    • 13th Oct 18, 4:30 PM
    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
    • By csgohan4 13th Oct 18, 4:32 PM
    • 5,284 Posts
    • 3,382 Thanks
    csgohan4
    • #6
    • 13th Oct 18, 4:32 PM
    • #6
    • 13th Oct 18, 4:32 PM
    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.
    Originally posted by Thrugelmir
    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
    Last edited by csgohan4; 13-10-2018 at 7:07 PM.
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • dunstonh
    • By dunstonh 13th Oct 18, 6:09 PM
    • 96,086 Posts
    • 63,893 Thanks
    dunstonh
    • #7
    • 13th Oct 18, 6:09 PM
    • #7
    • 13th Oct 18, 6:09 PM
    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.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ACG
    • By ACG 13th Oct 18, 6:28 PM
    • 17,966 Posts
    • 9,752 Thanks
    ACG
    • #8
    • 13th Oct 18, 6:28 PM
    • #8
    • 13th Oct 18, 6:28 PM
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • mrginge
    • By mrginge 13th Oct 18, 7:01 PM
    • 4,696 Posts
    • 8,936 Thanks
    mrginge
    • #9
    • 13th Oct 18, 7:01 PM
    • #9
    • 13th Oct 18, 7:01 PM
    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.
    Originally posted by ACG
    Are you absolutely sure about this?

    Since when was health a protected characteristic?
    • csgohan4
    • By csgohan4 13th Oct 18, 7:09 PM
    • 5,284 Posts
    • 3,382 Thanks
    csgohan4
    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.
    Originally posted by ACG
    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
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • ACG
    • By ACG 13th Oct 18, 7:14 PM
    • 17,966 Posts
    • 9,752 Thanks
    ACG
    Are you absolutely sure about this?

    Since when was health a protected characteristic?
    Originally posted by mrginge
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • sarahstar77
    • By sarahstar77 14th Oct 18, 10:56 AM
    • 2 Posts
    • 1 Thanks
    sarahstar77
    Possibly, it was an interest only mortgage, thanks
    • owen_money
    • By owen_money 14th Oct 18, 12:18 PM
    • 614 Posts
    • 724 Thanks
    owen_money
    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
    Originally posted by csgohan4
    Yeah but I've had some great nights out and have still paid my mortgage off - never paid for insurance, well maybe for the odd prophylactic
    One man's folly is another man's wife. Helen Roland (1876 - 1950)
    • antrobus
    • By antrobus 14th Oct 18, 2:10 PM
    • 16,338 Posts
    • 23,218 Thanks
    antrobus
    ... Essentially is there a body that I can contact who would look into this if I got all the facts together. ....
    Originally posted by sarahstar77
    Your parents can complain to the lender that they were mis-sold the mortgage. If dissatisfied with the response, they can take it to FOS.

    ...
    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. ....
    Originally posted by sarahstar77
    Why do you feel it is irresponsible to lend for home renovations? What renovations were carried out?

    ...
    Shouldn’t they have looked at their age and the potential for loss of income? ....
    Originally posted by sarahstar77
    How old where they when the loan was taken? What potential for loss of income do you believe existed at that time? Why do you think it's relevant?
    • AnotherJoe
    • By AnotherJoe 14th Oct 18, 3:03 PM
    • 11,850 Posts
    • 13,818 Thanks
    AnotherJoe
    Possibly, it was an interest only mortgage, thanks
    Originally posted by sarahstar77

    What was the house valued at when your parents took out the IO mortgage?
    How much was the mortgage for?

    For how long?

    Why did they take out an IO mortgage and not a repayment?

    What was it valued at when you took out a mortgage on it?
    Last edited by AnotherJoe; 14-10-2018 at 3:06 PM.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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