Another new scandal on the horizon!
There is usually no smoke without fire, but let us know what you think about the latest scandal . . .
First there was endowment miss-selling, then a scandal with overdraft charges and more recently with payment protection insurance. Now its interest only mortgages that pave the way for the telephone claims handlers to go viral, pestering anyone and everyone that’s ever had an interest only mortgage in the hope that they can cash-in on an oversight from either the banks or the financially uneducated consumer.
But what is the right answer here? Should we be defending the banks? Surely if someone enters an interest only mortgage they are aware and advised that there is a final payment when they decide to sell up and move on?
Articles in the press are suggesting that this is a scandal waiting to happen. From where we are sitting it looks like the claims handlers are trying to stir up trouble.
When it comes to regulating these issues it seems that regulation alone does not do the trick, because there are now calls to regulate the claims chaser. Something doesn’t add up, because if everyone knows that these financial products do not make sense, why are the offered and sold in the first instance?
Let us know what you think, or even better; if you have been ill-advised over an interest only mortgage we would love to hear from you.
David Wilcock | 30 May 2013
Having been a mortgage advisor in the past I can say that this is an attempt by claims handlers to stir things up. All lenders preferred to offer repayment mortgages and if an interest only mortgage was required they always required confirmation of how you would repay your mortgage at the end of the mortgage term - This would either be with an endowment policy - Yes they went wrong ! or it could be that as you got older you would "downsize" - no doubt the claims handlers will use the excuse that you are having to sell your home to make the repayment as the reason for mis-selling -
Tony Spurling | 30 May 2013
If this were to gain momentum I would think it very unfair. Anyone who has taken an interest only mortgage must surely be aware of the situation. Many people who took them out a number of years ago have enjoyed some spectacular capital growth in the value of their homes. So there may be a balancing gain.To put the mortgagee in the same position as the hardworking person who has paid down the loan would seem unfair.