Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
Mortgage misselling claims will “start slowly but snowball”
The FSA came out last week and were crystal clear that interest-only mortgages still have a place in the UK mortgage market. In addition they left no doubt that the burden of repaying an interest only mortgage lays firmly with the client, not the lender or broker.
On that basis I fail to see many situations where a CMC can raise any valid complaint when a client has had an interest-only mortgage for (x) years and made no attempt to repay it despite numerous letters from the lender.
The way to quash all this would be for the FOS to come out and state that unless there was a linked issue (such as the IFA who remortgaged and sold the investment that then failed) the FOS will not state that simple interest only is bad advice.
That way the broker does not need to worry about the £500 FOS fees per case which will send most brokers and IFAs straight down the tubes. As mentioned, most mortgage brokers are not allowed to advise on the specific investment vehicle so how can we have any responsibility for compliance?
I suggest that brokers will make sure that any file has as much documentary evidence in it as possible! By the way, how does one assess quantum? PPI is easy, but in what way can quantum be established, the client was better off each month and chose to spend it, are we now supposed to repay their mortgage?
These scum CMCs will be mostly failed and booted out advisers who have now turned on their industry. Time to put an end to it now before the industry implodes.
Stuart B
08 Nov 2012 | 17:18
You can see more of this week’s best reader comments by clicking HERE and read a round-up of the biggest news stories HERE.
