how do i know if mortgage was mis-sold

[petrified]

Hi All

 

when i took out my mortgage i went through a broker and paid around £700 broker fee, i was only offered one product and it was an interest only mortgage, no advice was offered on how to pay the mortgage off at the end of the term,

 

im just curious as to where i stand and is it worth trying to do something about this, the mortgage is with mortgages plc

 

and advice is welcome

 

regards

lee

[citizenB]

Have you got all your paperwork in respect of this contract ? If not, you will have to send a Subject Access Request. You will find a draft in the CAG library, linked at the top of each screen.

 

You will also need to research MCOBs - Linked below

 

http://fsahandbook.info/FSA/html/handbook/MCOB

[Lea_HTH]

When did you take the mortgage out? How many years left to run?

[petrified]

mortgage was taken out in 2007 and has 20 years to run

[Lea_HTH]

Any prospective claim aside, you have ample time to purchase an endowment policy in order to repay the loan at the end of the term. If you do not attempt to mitigate any losses to yourself, then any potential claim you might have against the broker/lender (not saying you actually have a claim) will be reduced if you haven't acted to mitigate losses.

 

If you haven't already investigated purchasing an endowment policy, then I suggest you concentrate on that first as the longer you leave it, the more expensive the policy will be; and then return to the issue of whether or not you have a claim for mis-advice once the important issue is resolved.

[indistress]

Hi

 

Sorry for jumping on this thread.

 

But I am interest only mortgage and dont have an endownment policy, Can you actually get these after you have purchased your house?

 

Thanks

[Lea_HTH]

Hi

 

Sorry for jumping on this thread.

 

But I am interest only mortgage and dont have an endownment policy, Can you actually get these after you have purchased your house?

 

Thanks

 

Yes, speak to a financial adviser.

[Rorschach]

Who was your broker? If you are basing your claim on the fact your didn't receive adequate advice, it is 99% likely that your claim is against the broker and not the mortgage company. Many of these brokers following the crunch (recession!) are no longer trading. This doesnt mean you shouldnt investigate a claim, it just means it will take time and effort.

Also, as Lea has said, its a pretty weak argument that you weren't offered advice on how to pay off the loan. You knew you would, why didn't you look in to it? Not being harsh but that is the first question a Judge would ask.

[gemspan]

I have to agree with you Rorschach. Many of the mortgage brokers are no longer trading now.....they are now shafting people get back money from mis-sold loans and credit cards....oh the irony! lol

 

I do think there is an area where you really have to take some of the responsibility of your financial dealings yourself. It just makes the people who really have got problems and have been mis-sold, blend into the others who are just trying it on. I took an interest only mortgage and for the first 3 years of the high interest rate I kept it to interest only. My plan was to change it to repayment after the 3 years when the interest rate change. I then suffered serious sickness and I'm now worried sick at what is going to happen to me!

 

I was aware that it was an interest only mortgage and therein lies the problem. People are taking these mortgages because they are sold as being much cheaper...or they used to be anyway! I do think that many were mis-sold as the implications of an interest only mortgage were not explained fully. I know that it wasn't explained properly to me...but I was, I thought, financially savvy.

 

Another thing that is never explained to you is the LIBOR rate and the differences between that and BOE interest rates. I didn't know what LIBOR was because I have only ever had BOE interest rate mortgages and didn't know there was any other interest rate.... I am now learning the hard way. That is completely wrong.

 

Thank you. xxx