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This Has Mis-Selling Written All Over It.


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HOLA441
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HOLA442

IO is always far cheaper than repayment. So the only people who could claim would be those who were told they were on repayment and only now discover and can prove they'd been on repayments. All the rest can just take the equity left over from the sale and downsize.

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  • 11 months later...
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HOLA443
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HOLA444

I have a friend who worked part time and got a mortgage for 5x her "Pro-Rata" salary. it clearly said "pro-rata" on the letter from her employer she gave as evidence of income. Actual pay was less than half that, as she worked 16 hours.

Does this sound like there could be a mis-selling claim?

Edited by ManVsRecession
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HOLA445
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HOLA446

I took an endowment mortgage in 1971.

In those days, the endowment was for the full value of the debt, so even without any profits, the debt would be fully cleared after 25 years.

I moved in 1986, and the Alliance BS clerk tried to sell me new endowment mortgage when I wanted a straight repayment one because I knew that I would retire before the end of the mortgage and have a lump sum to use to clear the debt.

He was very insistent and showed me that an ""Endowment"" mortgage was cheaper than repayment, let alone the life cover needed for a repayment mortgage.

Luckily, he showed me his computer screen.

I noticed that the so called ""Endowment"" mortgage was in fact a combined product, 80% IO and 20% insurance endowment.

So, they were basically lying or at least deliberately misleading by using the words ""Endowment"" mortgage.

They hoped that the then high profits that with profits insurances were earning would continue, so that although the endowment was for only 20% of the debt, the profits earned would cover the whole debt.

Then, the bank rate and hence insurance profits fell.

Edited by Byron
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