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This Has Mis-Selling Written All Over It.

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http://www.dailymail.co.uk/news/article-2704178/Moment-200-strangers-joined-forces-stop-cancer-sufferer-63-evicted-bank-lost-battle-mortgage-payments.html

We need a sweepstake on when the payouts begin this case being underwritten by us tax payers. I have an interest only mortgage and know to the penny how much is outstanding. If this poor sod didn't understand the financial product he was taking out he should have asked more questions at the time or not gone ahead with it. Still it's a small amount owing relative to the free money (asset inflation).

As awful as the prostate cancer is he shouldn't be using this to extricate him from a not particularly deep financial hole by pulling on peoples heartstrings for an unrelated matter that being his own stupidity.

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Just read the article and headed over to see if there was a thread on it.

How can the chap have been so careless. If he had the endowment then there will be a record of the Monthly payments on his bank statements. Or did he think the endowment portion came free?

Mis-selling? possibly but the bank would have been sending him annual statements anyway as would the notional endowment policy provider.

Don't think these cases would have any mileage in them.

He thinks he has had a big victory........ The bailiffs will bide their time.

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The ******** Mail again? Can we please ladies and gentlemen use a reliable source of data in future. Three quarters of the Mail website traffic must come from click throughs on this site.

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Very little detail in the article.

Wife had been informed twelve years after the mortgage was taken out that they wouldn't pay off the balance and did nothing.

The reason that they allowed their endowment to lapse is that they believed that house prices double every seven years so would sell up and downsize to a small/cheaper property.

Now they couldn't possibly sell for so little "ours is worth more".

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Lenders' Right To Possession: Anytime, Any Place, Anywhere

..In particular, I remember being amazed that a mortgage was, in effect, a right to immediate possession of the property, regardless of whether there was any default on the part of the borrower (the right to possession arises “before the ink is dry” as it was put in various cases).

Not my place to make a judgment; don't know of all the details.

What is interesting is the banks prepared to go for possession; whatever your age or circumstances.

He uses language in his video.

. There's a followup video too, which I presume is to thank solidarity people showing up to stop the possession.

Tom: "The banks don't have any money left, so their going after the property."

"So if you can come along and stand with my family, and myself, shoulder to shoulder, to show these thugs and scum.. that they don't have any authority. People didn't give them this permission to do this. Governments corpoarations did. Their not alive. They're dead entities. We're flesh and blood."

Renters are flesh and blood too - those who've waited for better value pre QE,0.5% bailouts. My savings are in financial institutions, and I trust them to act sensibly. Borrowers who can't pay, their assets returned to the market for savers to buy at cheaper prices.

Not particuarly this guy in this case (and hpi hasn't been strong on his road), but repos should have occured in volume... and smashed up the happy jumbo debtor forever positions, as values have crazily compounded; "borrow to infinity"... "savers are just stupid lol" - except we had QE/0.5% and a lot more.

There is no such thing as savings - it is all debt.

The problem with many HPCers is they see debt as bad and don't realise debt and savings are two sides of exactly the same coin. It is always hilarious to see people boasting of their massive savings in one breath and then criticising the overindebted.

Hil-kin-harious. Overindebted who borrowed to set ever higher prices for other homeowners. Weak point, when they can't pay and have to sell for less, brings down all the other homes in value, for savers to finally see some value. Except for QE and victimhood.

Edited by Venger

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An Endowment mortgage IS an IO mortgage.

Exactly, seems this point is missed throughout the article, I just look at this and think how can someone be so stupid. They really don't deserve all this sympathy.

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the comments and seeming ignorance of what a mortgage is, what an endowment is, what IO means are astounding.

is there really so much 'I didn't understand so I was mis-sold and it isn't fair' sheer ignorance about - answer probably yes as they are DM readers :unsure: and make senseless comments on things they don't really understand.

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the comments and seeming ignorance of what a mortgage is, what an endowment is, what IO means are astounding.

is there really so much 'I didn't understand so I was mis-sold and it isn't fair' sheer ignorance about - answer probably yes as they are DM readers :unsure: and make senseless comments on things they don't really understand.

They are defending HPI. They are scared it might happen to increasing numbers of homedebtors in their area, being sold off for what market will pay, thus lowering value of their own homes.

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http://www.dailymail.co.uk/news/article-2704178/Moment-200-strangers-joined-forces-stop-cancer-sufferer-63-evicted-bank-lost-battle-mortgage-payments.html

We need a sweepstake on when the payouts begin this case being underwritten by us tax payers. I have an interest only mortgage and know to the penny how much is outstanding. If this poor sod didn't understand the financial product he was taking out he should have asked more questions at the time or not gone ahead with it. Still it's a small amount owing relative to the free money (asset inflation).

As awful as the prostate cancer is he shouldn't be using this to extricate him from a not particularly deep financial hole by pulling on peoples heartstrings for an unrelated matter that being his own stupidity.

..heard of many cases where the financially less astute have no idea they are on IO and they think the expiry date of the agreement will be themselves 'mortgage free' without realising their repayments had in fact only been covering the interest ...usually misselling from brokers who wish to renew the mortgage to get their commission and use the IO route to get the mortgage through with the lower monthly repayments usually at a remortgage stage...commission driven sales should be banned...

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Its peak endowment time ~88/89 + 25 years.

The 80s boom was built on f-wit finance.

Life companies rightly got theitr asses sued for endowment - just 30/month* will pay off that 40K morrgage

* - assuming investment growth of 22%/year.

My parents have an endowment. Born 1980. Was going to pay off the house and have enough spare or 'a nice car and family holiday'.

It fell short by 2K. On a 12K mortgage.

There is a LI known to me who, when it was obvious that their figures were made up, reviewed a large percentage of the paperwork.

Something like ~30% had no signature to confirm the person had accepted the contract. The stupid company had not checked the returned paperwork and paid out huge commission to the sales person! A significant percentage - 20% - had the same signature i.e. the sales guy had signed it.

B+B seem to be in the right in this case. They would not have took it to court without the paper work.

This huy would have been warned 12 odd years ago and ignored the warnings.

The repo mem will be back.

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I think what happened here is that these people took out their mortgage through B+B and the endowment through a broker, insurance or estate agent before the Financial Services act came into being on 29th April 1988. Most of these endowment selling companies became regulated and later on accepted responsibility for any miss selling prior to 88. Some independents just disappeared so there is no body to claim off, If, indeed they were miss sold an endowment policy. He talks in the video about the Ombudsman saying they were time barred. I have some sympathy for anybody caught in this position, no way of knowing at the time that you had bought of the wrong salesman.

They were then warned that the mortgage would not be paid off and if you listen to the video, he talks about B+B changing him to a part and part mortgage (normal change to move some of the IO onto a repayment basis). They refused this and asked B+B to put them back on IO. That was 12 years ago. They have known since then that the mortgage was not going to be cleared. They have been to court twice and through the Ombudsman service once. Hardly realistic to suggest they were not aware that this would happen.

My default position is usually to side with anybody who is done by the banks, however here Im not sure just how naive this couple are. Some of the language he uses is reminiscent of the Freedom of the Land'ers and several of the supporters who turned up at the house to stop the eviction were from FOTL groups. Theres more going on here than we know.

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http://www.dailymail.co.uk/news/article-2704178/Moment-200-strangers-joined-forces-stop-cancer-sufferer-63-evicted-bank-lost-battle-mortgage-payments.html

We need a sweepstake on when the payouts begin this case being underwritten by us tax payers. I have an interest only mortgage and know to the penny how much is outstanding. If this poor sod didn't understand the financial product he was taking out he should have asked more questions at the time or not gone ahead with it. Still it's a small amount owing relative to the free money (asset inflation).

As awful as the prostate cancer is he shouldn't be using this to extricate him from a not particularly deep financial hole by pulling on peoples heartstrings for an unrelated matter that being his own stupidity.

Oh! the IO miss selling claim companies have begun calling as I got a call the other day about it. Not sure how this will pan out as the borrowers (claimers) will need to prove beyond a shadow of a doubt that they were not able to understand what the words Interest Only Mortgage meant. The name of the mortgage and every other piece of documentation is a bit of a giveaway. Then IO will have been explained again by the solicitors who did the conveyancing, followed by a yearly statement which shows that the balance of the mortgage has not reduced.

I'm sure there will be some legitimate cases, just not that many. That doesn't mean that there won't be lots of claims or pay outs though...

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The ******** Mail again? Can we please ladies and gentlemen use a reliable source of data in future. Three quarters of the Mail website traffic must come from click throughs on this site.

+1

That paper is just pure bile and hypocrisy.

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When the PPI runs out they'll have to move on to the missold mortgages. I look forward to my refund for having bought an overpriced property.

You've had your first five years of compensation, delivered in the form of zero-interest-rates.

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purely anecdotal of course but in 1978 I bought my first house with an endowment mortgage

the reason being that it included life cover, and there were tax advantages on the endowment payments (not sure how that worked)

it was a with profits low cost endowment

when I moved house in 1984 I switched to a repayment mortgage - as I think the tax advantage had been removed and I took out cheap life insurance but I kept the endowment going as the payments were cheap in terms of inflation and it would provide a lump sum in the future (at no point did I believe or expect any guaranteed return over and above the original amount to pay of mortgage which was originally 8K)

in the event I took the early maturity option 5 years before the original end date (this was in about 1999/2000) and it paid out 21K with final bonuses

yes later endowments could have been poor and a lot depended on the providers those who complained about shortfall were compensated and should have switched to repayments and used the compo to reduce the outstanding amount.

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purely anecdotal of course but in 1978 I bought my first house with an endowment mortgage

the reason being that it included life cover, and there were tax advantages on the endowment payments (not sure how that worked)

it was a with profits low cost endowment

when I moved house in 1984 I switched to a repayment mortgage - as I think the tax advantage had been removed and I took out cheap life insurance but I kept the endowment going as the payments were cheap in terms of inflation and it would provide a lump sum in the future (at no point did I believe or expect any guaranteed return over and above the original amount to pay of mortgage which was originally 8K)

in the event I took the early maturity option 5 years before the original end date (this was in about 1999/2000) and it paid out 21K with final bonuses

yes later endowments could have been poor and a lot depended on the providers those who complained about shortfall were compensated and should have switched to repayments and used the compo to reduce the outstanding amount.

You were lucky. If you'd held it after 2001 it would have paid out significantly less.

LI premiums had a small tax incentive until 1984-ish.

After that date, the entire LI should have been reduced to nothing more than life policies.

But no, rather than scaling back, LI scaled up, all driven by OTT commission sales.

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It seems to me that if you had straight repayment your going to miss out on all the taxpayer teat sucking. Its a miss-selling scandal.

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The ******** Mail again? Can we please ladies and gentlemen use a reliable source of data in future. Three quarters of the Mail website traffic must come from click throughs on this site.

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