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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9605
Experience:  I have been practising for 30 years.
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False information by pearl assurance rep regarding interest

Resolved Question:

false information by pearl assurance rep regarding interest only mortgage
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.
Can you explain your situation in detail please?What you want to know about it? You have not asked a question.
Customer: replied 1 year ago.
re interest only morgages.people including myself were told that money would not need to be paid until house was sold.iam fortunate i put past money to pay but people i have spoken to that has an interest only mortgage were under the understanding that it would be after sale as long as you continued to pay the mortgage.as far as i am concerned this was a misselling practice with words over the country there must be hundreds missold contracts.
Customer: replied 1 year ago.
this was carried out by an agent forpearl assurance
Expert:  F E Smith replied 1 year ago.
The situation with regard to interest only mortgages is changing by the day.When these were taken out, the situation was that there was always a date at which the loan would need to be repaid and it was always clearly stated in the mortgage offer that the borrower needed to take out a repayment vehicle to pay the mortgage at the end of the term sell the property.These were never open-ended. If the representative told you that you could have this for ever and continue to pay interest for ever until such time if you sell the house, then you have a claim for mis-selling provided you can prove that.Although some lenders were originally taking quite a robust line with regard to borrowers having to repay interest only mortgages, the government and the Financial Ombudsman and the Financial Conduct Authority have instructed the lenders to take a more lenient line with this and where possible, to extend the term. As a result, whereas some mortgages would finish at age 70, some lenders are now allowing interest only until aged 90.Mis-selling claim apart, which you might want to pursue separately, you may find that negotiating with your lender to extend the term will pay dividends.Meanwhile, you might want to instigate a mis-selling claim in respect of the interest only mortgage.Can I clarify anything for you?Please don’t forget to rate the service positive. It’s an important part of the process by which experts get paid.Best wishesFES
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