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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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should an interest only mortgage be sold when it is impossible

Customer Question

should an interest only mortgage be sold when it is impossible for the mortgagee to repay the sum at the end of the time.ie over £100.000 over 10 years
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

For now please let me know if you you were aware of the required repayments?

JACUSTOMER-dhr67wy9- :

as far as I know the payments were only for mortgage repayments.no information for repayment of the original mortgage at end of term

Alex Watts :

Did you know it was interest only?

JACUSTOMER-dhr67wy9- :

yes

Alex Watts :

So you knew the debt would be there at the end ?

Alex Watts :

Did you not make any provision for the repayment of the principal sum?

JACUSTOMER-dhr67wy9- :

Yes but surely a degree of responsibility to be able to repay must be with the lender ?

Alex Watts :

So you knew it was interest only, you knew you had to make provision to pay it back at the end of the term. What are you saying the lender didnt do that they should have?

Alex Watts :

Are you seeking to have the £100k written off?

JACUSTOMER-dhr67wy9- :

Not at all,I am only getting information for a third party who is now selling the property to repay the debt and being threatened with legal action

Alex Watts :

Ok, its bad news I am afraid.

Alex Watts :

If they knew it was interest only then they knew the capital would have to be repaid at the end.

Alex Watts :

If they made no provision for this, that is not the fault of the lender.

Alex Watts :

In short if they knew it was interest only then the capital sum would always be repayable at the end

JACUSTOMER-dhr67wy9- :

ok that is all I needed to know

Alex Watts :

But a complaint can be raised to the Ombudsman.

Alex Watts :

They offer a free, independent service and can be reached at: www.financial-ombudsman.org.uk

Alex Watts :

I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest

JACUSTOMER-dhr67wy9- :

thank you for your help

Alex Watts :

If this answers your question can I ask you to rate my service before you go today please, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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