Mis-sold mortgage-or something...

jamesy boy | 19:16 Tue 13th Nov 2007 | Business & Finance

4 Answers

In June 2006 my wife and I bought a house, and went through a mortgage advisor. Today, i received a phone call from the advisor saying that there was a flaw in our mortgage contract, and as such, we would be entitled to a large sum of money from our lenders. However, to process this claim, his company require a fee of �495, which they will refund if the claim is unsuccessful, but will keep if we are entitled to the cash (mininum �5,000, supposedly). Anyone else heard of this deal? Is it too good to be true? It sounds it to me....

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Ethel

If there is a flaw in the mortgage contract, surely it is the advisor that is liable? Did he not read the terms and condtions and so on, and advise you?

This just does not make sense - what flaw? Have they told you? Sounds like a scam to me, Are you sure it is your own advisor that has contacted you?

If he is so certain there IS a flaw which entitled you to compensation, why do they want money up front?

factor-fiction

It sounds like a scam , probably from an ex-employee.. If you think you may have been missold you can simply submit a claim to the company that sold it you. That will cost nothing.

jamesy boy

Question Author

Yeah, I thought it sounded a bit fishy, just wanted a second opinion, really. Like Ethel says, why not pay out, and take the fee out of that instead of getting it upfront. Thanks for your answers.

annie0000

Sounds like he is churning your policy for another with cashback. The new policy will have an upfront fee attached - he obviously reckons that he can get your cashback deduct the mortgage fee and pass on the remainder to you. It will look all the more geniune if the forms are accompanied by a cheque form your account.

He will also get commision on the sale from the new company. He will have already got commision from the last company. This is illegal and I would imagine that he will have to have your signature on something as well, so if he is not getting you to sign the application for the new policy, he is probably forging it. I would report him to the FSA.

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