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chrisb333

Is it time to sue mortgages companies for mis-selling interest only mortgages?

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With all the refunds now being given for mis-selling of PPI is it now time to make a case for the mis-selling of Interest only mortgages.

 

A lot of people, me included, were given an interest only mortgage when the prices were at a peak. Yes, we all believed that the prices would carry on rising, but someone could have said, "hey, you want an interest only mortgage but can you prove you can actually pay for it at the end of the period?"

 

I know people will argue that we made the decision, but it was a joint decision, exactly the same as the PPI scandal. I see no difference!

 

I have no way of paying this mortgage off and I know of several people in the same boat, particularly as lots of folk are losing their pensions now also.


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I am with you. I was sold a pension linked interest only mortgage when I had a job with a good salary and my employer matched my pension contribution. I was made redundant and in those days the amount of pension contribution was based on age and income. But no income,no pension. This was during the recession in the early 1990's and my property went into negative equity. The mortgage interest rates rose to a crippling 14%.

I was not told that if I was to be made redundant the pension was useless. In any case it turned out to be not enough to have paid off the mortgage if it had gone to full term and the mortgage itself will run until I am 69. Hill Samuel had to pay me compensation for mis selling the pension but only up to 1992 when I was made redundant. I have asked the FOS whether I can claim against the Woolwich and Hill Samuel, who sold me the original mortgage that the Woolwich took over on the grounds that I was not warned of the problems that would be caused should I not be able to contribute to the pension because I was out of work.

That was several months ago and they tell me it could take 6 months before they get to even look at it! Useless.

I would be very interested to know how you aould go about it.

Edited by eagleforms
Adding more facts

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Watching this closely, I am in same boat.

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Hi Gustavuis rex

Notice you are viewing this and have been following your wise words on the SPML/Crapstone Thread, which seems to be building up to a climax.

If you have a view about this matter it would be greaty appreciated. The big boys in the mortgage market are every bit as ruthless as the sub primers and all the same horrors apply......over the top arrears charges, agents fees added when no agents are involved, charging interest for 5 months on money that had been paid back etc etc.

They went for repossession with me but the judge would not allow it on the grounds on "Norgan law". but Barclays went for an appeal as a test case with me, despite the fact that the judge had ruled that there could not be an appeal. His boss, looking for a bit of publicity, llowed it on the grounds that it could be important and Barclays would get their way one way or another. To avoid this my son lent me the money to pay off the arrearsin May and despite that,they have charged me interest onthe money I paid back for 5 months. How can they get away with that.

It seems that everything Barclays get their grubby fingers into is designed to prise as much money our bof their custamers as they can.

Your comments would be most welcome

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I haven't had much support for this. I thought more people would be interested in starting some kind of campaign.

 

Perhaps everyone is hoping that the house prices rocket again.

But that doesn't really solve the "how am I gonna pay the whole mortgage off" does it?

 

C'mon, someone must have some thoughts on it?


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Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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I think people just dont know where to start, who to trust etc. I am in the same boat with my mortgage linked to the LIBOR rate. I did have cover for my mortgage through a policy, but had to bin it when our jobs went pear shaped. I have to crack on with doing something as I am now in my 50`s and in a slightly better position than I was.

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Chrisb333:

There is a reason for people not wanting to start a campaign against interest only mortgages as opposed to the campaign against PPI. What you are talking about is mis-selling. PPI was mis-sold as no one really understood the terms of the policies and they were generally very baffling. The reason interest only mortgages are different is because they do exactly as says on the tin - they are interest only, not repayment. Anyone who can read would understand that, so how on earth could it be mis-sold, people always realised that they do not actually ever repay the prinicple borrowed. Also, every mortgage offer (post October 2004) states that the borrower should be making arrangements to save in a seperate savings or investment vehicle in order to repay the principle at the term of the mortgage. It was always crystal clear. As for thinking property prices would always rise, more fool you. Ever seen adverts for investments? The value of your investment can go up as well as down. Lets get serious and instead of lashing out and blaming others, take a look at yourself first and think, did I make the right decision, not try and blame someone else for your poor judgements.

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this is also why many interest only mortgages came with an endownment policy which were missold and holders had the chance to claim and pay off any shortfall also at this point many would have transfered to a repayment like i did


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I make you exactly right faith, it was the endowment that was mis-sold, not the mortgage itself. people forget that an endowment mortgage is in fact 2 different products: an interest only mortgage backed with an investment vehicle. Hence, people sued the endowment companies and not the mortgage companies.

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I guess you have to remember that the people who sold the insurance were the same people that sold the mortgage, extolling the virtues of the combined product. It was usually done so that the salesman could earn double bubble, with commission on each, with their employers encouraging them.

I assume that this is what chris was getting at when he set this thread in motion.

As I said earlier, I have asked the FOS whether they will look into a complaint about mis-selling a pension linked mortgage and at some time or another, I will get a reply. I know that they are very busy, but can you imagine a commercial undertaking not answering queries for 6 months? They would have disappeared beyond trace. But as the whole thing is a government sponsored entity, funded by the very people they are investigating, with no monetry targets to achieve, but just doing enough to give the appearance of effectiveness, what can we, the gullible British public expect. Would they be able to get away with it in Germany or France? You tell me.

Edited by eagleforms
typos

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Chrisb333:

There is a reason for people not wanting to start a campaign against interest only mortgages as opposed to the campaign against PPI. What you are talking about is mis-selling. PPI was mis-sold as no one really understood the terms of the policies and they were generally very baffling. The reason interest only mortgages are different is because they do exactly as says on the tin - they are interest only, not repayment. Anyone who can read would understand that, so how on earth could it be mis-sold, people always realised that they do not actually ever repay the prinicple borrowed. Also, every mortgage offer (post October 2004) states that the borrower should be making arrangements to save in a seperate savings or investment vehicle in order to repay the principle at the term of the mortgage. It was always crystal clear. As for thinking property prices would always rise, more fool you. Ever seen adverts for investments? The value of your investment can go up as well as down. Lets get serious and instead of lashing out and blaming others, take a look at yourself first and think, did I make the right decision, not try and blame someone else for your poor judgements.

 

Thank you for your kind words!

What makes you such an expert in interpretation?

Your argument is flawed because lots of people understood their PPI.

You know this!

But lots of people have gotten on the bandwagon with the refunds and you can't really blame them.

I don't see much difference, most people knew what they were getting into.

 

As for taking a look at myself. I have. I'm in debt and desperately trying anything I can to get out of it.

One of the reasons I can't is because I am now in negative equity and the very same mortgage company won't help.

But thanks for your compassion.

It's people like you that make sure nothing is ever done about these companies!


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Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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Oh Now I understand.

Sergio is a mortgage broker!

LOL

 

I kinda guessed he would be but nice to know I was right.

 

Do you think this is the right forum for you Sregio?

Why don't you try www.unmoralistcoccupations.com


Welcome Finance PPI ***WON***£650

 

Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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Is Serio really a mortgage broker? Very interesting. If he is he has probably had the odd mis-sold policy to defend. Perhaps he could share this experience with us if he is.

If he isn't, then what is his position with regard to this thread? I would be very interested to know.

Meanwhile, why does Criss reckon he was mis-sold the mortgage itself?

Maybe it was because it was sold as a package and if insurance mis-sold, then so was mortgage.

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Correct, I am a mortgage broker. In response to your threads:

1. A mortgage broker is NOT an unmoralistic occupation. I can reel off a long long long list of testimonials from clients, who have been very happy with the service I have provided throughout the years. There have been many clients how I have managed to help them keep their property, so to call what I do unmoralistic is down-right rude and highly disrepectful. I would not call whatever you do Chris unmoralistic (unless you are a Member of Parliament!), so kindly pay me the same respect.

2. I think this is the perfect forum for me to respond to your threads on as this will provide with the view point of some who deals with mortgages day in day out and therefore have an insiders view, with information that the general public may not have access to.

3. I have never mis-sold a mortgage, I have always said to people, unless they are 100% happy to do the mortgage, I would not me happy to proceed on it. At the end of the day, all I can ever give is advice and recommendations, it is up to the client to make the final decisions.

4. As to my advice and recommendations, since being in this industry since 2001, I have not had ONE complaint lodged against me, for whatever reason, whether it would be for the advice I have given or the service that I have provided.

5. With regards to this thread of interest-only mortgages, I have always explained to people that they should be making provisions in order to repay the mortgage upon the term. Again, it is up to the individual to take my advice, it is not compulsory for them to do so, but them if they do not, then they should not come crying to me if they did not take my advice as given at the outset. Please note, I am 100% upfront with my clients about all aspects of their mortgage. As you can tell from my previous threads, I am not one to mince my words and you can imagine that I am as blunt and forthcoming with my clients as I am in my threads, hence I am still working within the mortgage industry, though thousands of other disreputable brokers are not. It has been the hard times like these that sorts the wheat from the chaff.

And lastly, please pay me to respect of spelling my name right, its not hard.

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And before you say anything, I realise I missed out a few words here and there, but I was so outraged by Chris's ignorance I was typing as fast as I could!

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With regards to PPI, lets not forget that a lot of people who sold it, were not qualified in anyway. I have never sold it as I do not believe in it.

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Well, that's us told Sergio. Missed "g" last time for same reason as you missed the odd word in yours, but if offended you, oh dear, I am sorry. Funny how people who make out that being blunt is a virtue for them, is disrespectful by other people. I hope that you are not one of them and will respect my right to also be blunt. As you are an insider in the business, you have probably never experienced just what is does for your emotions, temper and health, being relentlessly pursued by your mortgage granting friends. They are vicious. My problems started when I had cancer ( I was diagnosed as having a 30% chance of living for the next 9 months, ever been there "g"?). Your pals in mortgage industry pursued me relentlessly during that period and would not give one cintilla of help-they just wanted their money, to the extent that in the middle of trying to fight the big "C" they wanted to have my house and put me in the street. Don't I just love them!

You may well moralise from what you believe to be your moral high ground, (you made the decision,you take the consequences), but we all know the closing technique of, "of course,if you're not happy, I'll walk away", don't we? Have you joined this thread to give us the benefit of your magnificent 7 years experience of the mortgage business? A business, from what I can gather from a number of threads on this site, has caused countless people so much worry, stress and in some cases, suicide, that you must forgive us for not realising that we have a real life good guy with us.

By the way, if you hven't sold a PPI, how can you help us with your inside knowledge that us lesser mortals wouldn't know?

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I agree with you totally, that the so-called Banking Code requirement for lenders to be sympathetic is laughable, if not completely and utterly untrue. My father-in-law in is precisely the same situation as you were, so I do understand. I totally disagree with the way that lenders operate. And even more so in the last year or so, ever since we part-nationalised a lot of them, and then still being unwilling to lend. The last year has been an utter slog for me, and I know I may only have been doing this for 8 years, but I know others who have been in the industry far far longer and they too say this is the worst the market conditions have been for lending. What each and every one of you out there forget (and this is partly why I come on here) is that I do not work for the lender, never have and never will. I work 100% independently from them, they are not my pals as you put it. I act in the interest of my clients not the lender. I am constantly fighting with lenders, trying to secure funding for my clients. I am very much on the side of the consumer (again, another reason for being on here). Don't confuse mortgage brokers with lenders, most brokers cannot stand the lenders, especially now. However, when there are so many myths and false impressions of the industry I work in, I would simply like to put people straight with the truth, not just my opinion. Thus, I am not trying to take any kind of moral high ground (unlike many many people here). I am just trying give you facts, that is it, if people don't like it, don't blame me, I did not make up the rules.

As far is PPI is concerned, I have no more inside knowledge as you. My opinions on it are formed simply from all the stories that everyone else hears.

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OK Sergio, I hear what you say, but it is still those people that you do not support who pay your wages. How can you help us to get some sort of justice from these people? I don't know whether you have looked at the threads about Cabot, SPML etc but there you will see how many people are being absolutely wrecked by this low life. Penalty charges that exceed their agreed arrears repayments leading to repros, supported by the courts, and no support from the FSA or FOS. If you are with us, please let us know how we can get back control of our lives.

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Eagle, I am in 100% agreement with you, the penalty charges levied upon people, particularly those facing hardship, is completely wrong. However, as far as reclaiming or fighting these, I have no further insider information than you have. The only thing I can say is that this situation is currently being reviewed as part of the FSA's Mortgage Review. Whether anything comes of it is another matter. I for one do not think much will be done about it.

And one final point, my wages are paid for, in the majority, by my clients for the service I provide. I may receive some commission from lenders for arranging mortgages, but this is not a lot and certainly not enough to live on.

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Thanks Sergio

I don't think much will happen either. I have a complaint with the FOS about Barclays charging me interest on arrears for 5 months after I had repaid them. They also started to charge me arrears fees of £40 a month because I refused to pay interest on money I did not owe them. They have also charged me with about £7,000 of "misc charges" and no matter how many times I write to them they will not tell me what they are for. As a result, they will probably try to repossess our house again.

Can you blame me and the many more in the same boat as me, for wanting to bring these people up short. We just need the strength in numbers to be able to do it.

I have had an interest only mortgage with them for 20 years and have paid them over £200,000 and they still want my house because I have not paid them a couple of thousand pounds. Pure greed. It is not just the sub primers who are unscrupulous, the big banks are probably worse, they didn't get big by being nice guys!

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Again, I am in 100% agreement with you. Banks are unscrupulous, but again, I and other mortgage brokers cannot do anything about it, as much as you cannot.

I just wish people would understand that mortgage brokers, like myself, have literally no control over these charges. If you knew what my daily work life is like, trying to secure lending for people, is like, you would soon realise that I am on the consumers side as much as possible. It is a daily struggle for me too, listening to my clients struggle with what they have and me trying to get a solution for them. It can be heartbreaking (and this is in no way me trying to solicit sympathy) but what can we, as the 'little man' do?

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Oh Dear, Looks like I have upset old sregio, or whatever he's called.

 

Look,we are not friends and never will be, I don't have to pay you any respect, nor will I. If I choose to spell your name wrong on purpose, thats my preogative.

 

Get off your high horse!

Of course Mortgage broking is unmoralistic.

You get paid by commission, so that means you are in constant turmoil with yourself about how to entice the homeowner into more expensive mortgage deals.

 

Please don't make out your some knight in shining armour that everyone loves, cause my experience is that no-one loves you folk, you make too much money out of people.

 

Getting back to my original topic which is interest only mortgages, you know yourself that these have recently been criticised by the Financial watchdogs. How can someone like me, who has no knowledge of Investments, pensions etc, put together an investment package that completely pays of the mortgage at the end of term?

Even people with some investment knowledge are struggling with endowments not reaching anything near their anticipated amounts.

 

Imagine if loans were interest only and everyone still owed the same amount they started with at the end of the loan period, there would be uproar, yet this is the situation millions of us find ourselves in.

 

I know you don't care and I don't expect you to. Your a mortgage broker, one of the **** of the earth, alongside, traffic wardens, estate agents and wheel clampers in a lot of folks eyes. I hope you don't sleep well, knowing the misery you cause people!, especially those with interest only mortgages, but I forget, you don't care!


Welcome Finance PPI ***WON***£650

 

Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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Again, I am in 100% agreement with you. Banks are unscrupulous, but again, I and other mortgage brokers cannot do anything about it, as much as you cannot.

I just wish people would understand that mortgage brokers, like myself, have literally no control over these charges. If you knew what my daily work life is like, trying to secure lending for people, is like, you would soon realise that I am on the consumers side as much as possible. It is a daily struggle for me too, listening to my clients struggle with what they have and me trying to get a solution for them. It can be heartbreaking (and this is in no way me trying to solicit sympathy) but what can we, as the 'little man' do?

 

Yer, I bet it's real misery earning £2000 out of maiking someone take out an interest only mortgage that they can't repay at the end?


Welcome Finance PPI ***WON***£650

 

Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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And while we are on the topic of mortgage brokers.

Do we actually need ANY?

My broker certainly didnt help me with any advice.

Didn't even want to know how I was going to pay the mortgage off.

I may as well have gone straight to the mortgage company and the broker wouldn't have received his £1700 or whatever it was.

 

In this age of internet searching for information, do we really need brokers.

Maybe your time is coming slegio?

You'd have to find a proper ethical job then, hey?


Welcome Finance PPI ***WON***£650

 

Black Horse PPI ***WON*** £1200

 

CL Finance-County Court Claim-***WON***(well sort of-stopped them continuing with the claims)

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