Mis sold Mortgage / Advice

[life after]

Not sure if anyone can help - we had some debt in the form of an IVA -the IVA practitioner advised that we could satisfy the IVA early by remortgaging. We found a broker and remortgaged based on the house valuation - at the time we thought the valuation was high but took it as gospel listening to the experts. We were then left with a high mortgage of interest only - but debt free, interest rates started to increase - we couldn't afford the mortgage - the mortgage company then were not helpful - they advised us to use a new program they had introduced whereby they basically sell the property - we did - we left to rent a house - our house sold 7 months later for £120k less! Does anyone think that we have a case for being mis sold our remortgage The mortgage company have been good and accepting a small amount, but we will be paying it back for years! - looking back the house was over valued and the multiples must have been about 5 to 6 times joint income. Feeling very worried and scared now as homeless and £120 k in debt. The mortgage company have advised that they MIGHT take action against the surveyor but this will take years and they are so protected, all we want is to get back on the property ladder and now we cant , any advise really appreciated Thanks

[MelanieGiles]

What a terrible story - it is almost unbelievable to read what has happened to you. Without having all the facts, or any of us apart from perhaps Tony Parsons being qualified to offer you real advice, this may be one to refer to the Financial Services Authority.

[life after]

Thanks Melanie, I can never explain what we are going through, from anxiety, to constant worry! - We got in debt and made some silly errors many years ago so we were advised that we should do an IVA, we was in this for over 18 months and we found that we had some equity in our home so we was going to sell and pay up and get a new mortgage (smaller house) the IVA Prat said that we shoudl remortgage rather than sell, we sourced a brooker from the internet and then we had a surveyor and he valued our house at 315k (wow) so we released as much as we could to the IVA (over 70K) and then we took a new mortgage out on interest only paying £1300 per month, we knew this was high, but knew we could afford this then the bang hit of interest going up and the media saying of the repossession etc.. This was so awful we put the house on the market for the mortgage 292, and we never got any interest in this, so we spoke with the morthage compnay who originally advised that we would have to miss payments before they got involved, so now we was scared and I wote a letter to the CEO and they became very helpful, they put us a new system called the partnership programme and thsi means they sell our house and take control, sort of like a voluntrary repo, but not recorded as this, we agreed and we left, the house was sold for 120k less than the mortgage and we are now renting, without a home and nothing to show for our life! - The mortgage company have been brilliant and they say that we cna pay back 70k within 3 years they will close it, realistically we can not do this, I have to write with a proposal, ut it will take us for rest of our life to pay back and no other mortgage company will touch us, so I have to make choices, do I go BR, NO If I have to do this it will hurt a lot of people, and I will lose my job, so what do I do? I could take the brookers to court, but as advised they are big and powerful and will win the mortgage company have made comments that they make take the surveyor to court, but this will take years, I am left with debt (again) and no assets, my wife and I are so stressed, its amazing how we are sticking together, but thats a diferent story, I really feel angry about this and again someone has made lots of money on me, and I have nothing. I do not want this to be a sob story, and I know that we made some mistakes, but we have lost it all and all we wanted was to make it right, So if anyone can advise me on where to go I really really would appreciate it. Thanks for your support x

[kallis3]

It really is a dreadful story. I hope you can get some sort of recompense.

You could always speak to a solicitor - a lot of them will give you a free initial consultation - they may be able to help you, or contact CAB and see if they can assist.

[MelanieGiles]

There is no harm in asking the FSA to look into the advice given by the broker. It may do no good but worth a try. If you then find that you are really stuck with the debt, you can perhaps think more logically about what the options are.

[Welsh Boy]

life after

What a sad story to read.

Your broker will be able answer any queries you have as they were the ones offering advice to you. Think of all the questions you want answered and list them, that way you will cover each one and not forget anything.

The surveyor also will have to provide rationale for their valuation figures i.e. 3 comparable properties that have sold or are marketed within a short distance of yours.

Depending upon the answers supplied by your broker and whether they are acceptable and accurate to your recognition of what was advised at the time, you can take the complaint further via the brokers regulator.

In the past there have been products offering 5 or 6 times income but your broker will be the best person to contact as they would have to checked affordability for you.

Best of luck.Tony