Mis Sold interest only mortgage?

[2nd degree]

Hi,

 

Wonder if you guys and girls can help me with this.

 

First of all I'm in the process of getting all the facts together as this is my Mums mortgage not mine, so bear with me.

 

My parents took out a 25 year interest only mortgage in 2006 for £70000. My Dad was 60 years old and my Mum was 58 years old. The mortgage was via a broker.

 

They were not asked about how they would make the final payment (if they were alive by then!!). Nor were they asked about life insurance and sadly my father passed away very suddenly in 2008.

 

The broker did ask if they had an income (they were foster parents) however my Mum does not recall being asked to supply proof of income.

 

My Mum does still have some income from fostering, but she cannot do it forever and she certainly has no means of paying any of the mortgage off (other than selling the house which is worth ~£150000).

 

Does this sound as if the broker mis-sold this to my parents and would my Mum have a case for compensation?

 

Thanks

 

Alan

Edited April 29, 2012 by 2nd degree

[iconoclash]

Hi - it sounds odd to me - I am not expert in any way but would definitely read up as much as you can about these type of deals, especially deals that go well into retirement - there are rules and regulations that should have been complied with like being asked all the right questions at the start and providing a key facts document. Dig out all the paperwork for both lender and broker and start with a request for the files by doing a Subject Access Request. Info on this elsewhere on this forum. Check if it is a first charge mortgage or a secured loan but either way must be regulated. Good luck.