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Case Studies

Mis-sold Right to Buy

Right To Buy

A mortgage adviser contacted our customer by dropping a leaflet through their door and following this up with a visit a few days later. They were persuaded to buy their Housing Executive property using the Right To Buy discount they had accrued over the years. Despite suffering from ill health and working only sporadically the mortgage adviser assured them they could get the mortgage.

There was never a conversation about:

  • How the mortgage would eventually be repaid (interest only)
  • Proving income (the mortgage application said our customer was a taxi driver, which they weren’t)
  • What happened if benefits stopped
  • How much the adviser was getting paid

Our customer was then told to use the mortgage adviser’s appointed solicitor. The mortgage went through and they received an additional £15,000 for home improvements.
Quite quickly afterwards the mortgage fell into arrears. Our customer contacted the lender and the adviser, neither wanted to know or help. Over the following four years they paid what they could, when they could and received financial assistance from family members to try to keep their home. Eventually they were repossessed in 2012 owing more than they had originally borrowed due to charges, arrears and interest penalties.

Since then our customer has lived with his brother. He contacted Mis-soldmortgageuk.com at the beginning on 2015.

We were able to prove that the mortgage was mis-sold and he received compensation totaling £37,000.


Mis-sold Overseas Property Investment

overseaswide

Mr and Mrs X bought an apartment in Spain on the advice of their financial adviser in 2006. He persuaded them to remortgage their own home to raise the deposit. Prior to that they had a £45,000 repayment mortgage with 12 years remaining. Their home was remortgaged to £145,000 on an interest only basis, £100,000 used as a deposit for the Spanish property. They took a further mortgage on it for £80,000. Once the property market collapsed they were left with a Spanish property they couldn’t rent or sell and a mortgage on their own home with no way of paying off the balance affordably on either.

They struggled with both properties until 2013 when they gave the Spanish property back to the Spanish bank who sold it for less than they owed on it. In 2014 they approached Mis-soldmortgageuk.com for help.

In May 2015 we obtained compensation of £72,000.

Now they can look to getting their lives bank on track.