Mortgage taken out but company dealing was insolvent

[Ladidi]

Can anyone help!!!

 

We were talked into a mortgage as a way of gaining money for later in life and also a way of paying off our debts..we have since found out that the mortgage company that persuaded us to do this was at the time insolvent, and may have been talking us into what was more good for him by way of business than for us given our circumstances. We are now way over our heads and dont what we can do from one month to the next and are incurring late payment fees as well as everything else as well..Does anyone know if there is any avenue we can take re the mortgage companies position at the time of selling us a mortgage that did not benefit us in any way at all.

[patrickq1]

i am not sure how to help you in your position at the moment but i would be contacting TRADING STANDARS AND CAB for their help and i will try to pm a mod see if they can help dont give up hope sometimes peoples posts get missed or overlooked but i am sure someone on here can help

patrickq1

[patrickq1]

i have pm a mod for you so just hang in their

patrickq1

[gizmo111]

Are you talking about a broker and mis selling when you refer to the mortgage company?

[patrickq1]

thank s giz hope you can sort it

patrickq1

i just pm curly

but no need your here ,i can go back to my sickbed

patrickq1

[gizmo111]

,i can go back to my sickbed

patrickq1

 

Whats the matter hun?

[Ladidi]

I m talking about a broker who acted for the company that was insolvent at the time of dealing with our mortgage..We was thinking of buying a house, namely our house which we live in off the council and got a guy round to do some questions and answers, but given our position at the time over our heads in debt and little income we thought there was no chance of this happening.

 

Anyway this guys says we can get paper work together and see where it leads. SO we allowed the council to give us a quote etc..I was dubious, but was persuaded that the money paying debts will not come back but money in your house is yours and will be there for when you retire..

 

Anyway, since then we have been over our heads, more bills and not enough income to cover it all etc, trying to remortgage. but no one will touch us given our circumstances, yet we were assured getting a remortgage would not be a problem and yet we have been trying to remortgage since last august..

 

I havesincefound out through the FSA website that this particular company was insilvent at the time of us doing business with them, leaving me thinking was this guy talking me into something that was more good for their business than us leaving us high and dry..

[Ladidi]

To help make myself understood a bit better. this guy worked fora company, he was my broker, adn the company he worked for was at the time of our mortgage going through insolvent..So they sell me a bad deal, making them a mint to help pay their debts...If that makes any sense

[gizmo111]

Hi ladi,

 

I got your PM thankyou:)

 

I am not sure what you are asking here, but can I summarise your situation as I see it? if it is wrong then please correct it.

 

You had a rented council house, and some debts.

You were approached by a broker who advised you on the right to buy.

You bought the property and consolidated debts into the mortgage.

You now cannot afford the mortgage, and the broker is bankrupt

[Ladidi]

We lived in a council house,

We toyed with the idea of buying the property and clearing debts,

The guy we found worked for a company.

He advised us to get all dets, eg how much for house, total debts etc

He advised of interest only mortgage, knowing there was little money coming into the home and explained that equity in house would build etc

I explained that my concern was when mortgage gets too high could I remortgage without any problems given our circumstances etc at time which would not change for 6 yrs on credit history..

He advised remortgage would not be a problem. once you have one anyone will take you.

Have since found out company that dealt with mortgage papers etc was insolvent at time of doing paper work, meaning he may have talked us into what we knew very little about, to what was good for him with him being insolvent at time than what was good for us given our circumstances

[gizmo111]

Ok, so what is you want help with?

 

A remortgage or mis selling of a mortgage?

 

I would suspect the guy you met was just an employee and knew nothing of the insolvency of the company he worked for.

[Ladidi]

We have tried to remortgage and we have been told no chance, our credit history is shot and has been before we even got a mortgage!!!

The guy who sold us the mortgage actually work for the company(broker)and dealt with all paperwork etc I think he knew alright, he left shortly after setting up our mortgage and set up his own business!!

I even called and asked him to help re do mortgage and he said he packed it in, as it was getting too much hassel!!

Everyone I have spoke to so far ahs said same thing...mortgage broker ( company) was looking after themselves at time, in no way should we have got mortgage on what little income we have and credit file as bad as it is..

[Ladidi]

As the mortgage sale was more of benefit to them more than us, is there anything we can do with respect to mis selling?

[gizmo111]

As the mortgage sale was more of benefit to them more than us, is there anything we can do with respect to mis selling?

 

 

I don't think so. Did you understand what you were doing? Who is the mortgage with?

[Ladidi]

I have sent you a pvt message showing detailed information I found on the FSA website.

We have been signed up to GMAC!!

Every decent mortgage broker we have spoken to since has said they would not touch them with a barge pole!!!!

[purplefile]

Hi Ladidi

 

How long have you had this mortgage for?

 

Any body with any adverse financial history looking for a re mortgage or new mortgage at the minute is finding it a lot harder than it used to be.

 

With the combination of lenders removing products particulary in this area and the lower loan to values allowed by most lenders I would worry for you at the minute.

 

There is however a slight glimmer of hope for you. Insolvent or not the company should have Professional Indemnity Insurance in place which "should" run for several years after a company has closed down for whatever reason.

 

If you feel that you were mis sold the mortgage then with an insolvent company you could go straight to the FOS ( financial ombudsmans service)

 

Some things you should clarify first:

 

Do you know the status of the mortgage broker?

 

You should have received a two peice statement called an IDD which outlined the status of the broker.

This should tell you if you were given advice or if they would give you information about products only.

This is also used to inform you of the fees if any you were to pay.

 

Was this a cold call visit from the broker?

 

Did you provide payslips for the mortgage or was it a self cert deal? (important)

 

Was sufficent information taken from you to allow the correct mortgage to be advised? wages - outgoings - financial history - attitude to risk

 

Did you receive any warnings about unsecured debts being consolidated onto your mortgage and now secured against your home?

 

Were the implications of having an interest only mortgage explained to you?

 

Are you now struggeling to the extent that you are missing your mortgage payments?

 

Do you have any children under 16?

 

Lots of questions I know but it is a serious compliant.

 

 

What paperwork do you have?

IDD?

Keyfacts document - outlines the mortgage you are getting- 5-7 pages long.

Mortgage offer - this would have been posted to you by Gmac.

 

[Ladidi]

Hi Ladidi

 

How long have you had this mortgage for?

 

Any body with any adverse financial history looking for a re mortgage or new mortgage at the minute is finding it a lot harder than it used to be.

 

With the combination of lenders removing products particulary in this area and the lower loan to values allowed by most lenders I would worry for you at the minute.

 

There is however a slight glimmer of hope for you. Insolvent or not the company should have Professional Indemnity Insurance in place which "should" run for several years after a company has closed down for whatever reason.

 

If you feel that you were mis sold the mortgage then with an insolvent company you could go straight to the FOS ( financial ombudsmans service)

 

Some things you should clarify first:

 

Do you know the status of the mortgage broker?

 

You should have received a two peice statement called an IDD which outlined the status of the broker.

This should tell you if you were given advice or if they would give you information about products only.

This is also used to inform you of the fees if any you were to pay.

 

Was this a cold call visit from the broker?

 

Did you provide payslips for the mortgage or was it a self cert deal? (important)

 

Was sufficent information taken from you to allow the correct mortgage to be advised? wages - outgoings - financial history - attitude to risk

 

Did you receive any warnings about unsecured debts being consolidated onto your mortgage and now secured against your home?

 

Were the implications of having an interest only mortgage explained to you?

 

Are you now struggeling to the extent that you are missing your mortgage payments?

 

Do you have any children under 16?

 

Lots of questions I know but it is a serious compliant.

 

 

What paperwork do you have?

IDD?

Keyfacts document - outlines the mortgage you are getting- 5-7 pages long.

Mortgage offer - this would have been posted to you by Gmac.

 

 

 

First off - The Guy was recommended by a boss I used to work for at...Barclays!!!!!

 

Secondly, due our circumstances at the time. we wre heavily in debt..poeple were breathing heavily wanted their monies DCA`s never off the phone etc etc

 

We thought best way out was to buy house were in and get difference to pay off the heaviest creditors..

 

Anyway, guy came back, knowing that I was sole earner - not a great Inc but enough - 3 Kids to keep under 16 and a husband who had just gone into self employment and not making much money!!

 

Came back with best deal GMCA self cert INT only but said we should have no problems whatso evr remortgaging and getting out deal. Explained once in a mortgage we could come out at any time, it is easier to get a mortgage while you have one than it is when you dont he said.

 

Explained my concerns are that with only my Income reliable, I was worried when payments would go sky high, he said you would make 2 of those and then remortgage, no worries..

 

We tried to do this, but as we missed a payment it went against us so we had to wait until August 07. Everything was spot on, should have been no problems so I thought!! 3 months later and told we have a deal it is in bag etc and then nothing..by then we were 3 months behind and had catch up all over again. We have been clear on mortgage for 4 months now but behind on 2nd charge, due to this we cannot get a new mortgage deal. We have been advised to get this at least 3 months clear, but best bet is 12 for a better deal.

 

We struggling really bad, what with rising costs, more and more bills..not knowing what we gonna do from one month to next!! our situation has not changed since before we bought property in fact it has got worse we now have more outgoings than incoming!!

 

SInce I found out from FSA website that company who dealt with sorting out mortgage on our behalf was insolvent and then our mortgage went through just one month after that, makes me think that company was acting in their interests and not ours by taking into consideration, our credit was so bad it was unreal, we had debts coming out of ears, and little income to support everything at the time so how the hell was we going to support a mortgage!! Yes at the reduced rate it would work but when that ended 10 months later it would not have been in our interests what so ever!!!!!!

[Bona]

Haveyou contacted GMAC to see what they say

[Ladidi]

What can GMAC say or do??????

 

At the end of the day I have a mortgage and if I dont meet payments I lose my home simple!

 

Nothing much I can do, except to pay what they are asking and hope we come out of the tunnel at the other end..