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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3755
Experience:  Solicitors 2 years plus PQE
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Until last year I had an interest only mortgage of approx.

Customer Question

Until last year I had an interest only mortgage of approx. £250 per month. I was then told I had to switch to a repayment mortgage because I had nothing in place to pay off the mortgage when the interest only term ended. I had previously been advised by a member of staff in the same bank that this was not a problem and that it could be extended on a yearly basis. I now find myself being prevented from retiring (I am 57 and have health problems) because the mortgage payment is now £750! I feel like I was misled into changing from interest only to repayment mortgage. Do I have any comeback on this?
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
All retail and consumer banks have an obligation to treat you fairly this includes giving accurate information on the product they are selling to you and not to mislead you. This is contained in their customer charter. If you feel like you were misled unfairly then I would recommend the following:
(i) Write to them and make a complaint - state you were you misled as you were sold a a product that you believed could be extended on a yearly basis. You had always told them that a repayment mortgage was not suitable for you and accordingly you are left with a product that is causing you loss;
(ii) Say to them if they do not respond to you with a full explanation as to why you were misold this product you reserve the right to
(a) Complain to the Financial Ombudsman www.financial-ombudsman.org.uk/
(b) Make a claim to the county court for your losses.
(iii) If they do not give you a satisfactory response then I would:
(a) Make a data access request for your file https://ico.org.uk/for-organisations/guide-to-data-protection/principle-6-rights/subject-access-request/ - you can then get the notes they have made about you and what advice they gave you;
(b) Make a complaint to the FoS - they will be able to award you compensation if appropriate. I would not bother with the court process (while this should be reserved as an option) as you will find it conceptually difficult to prove your losses.
I look forward to hearing from you.
Kind regards
AJ