Posted on 30 July 2012 by George
We have an interest only mortgage with no hope of paying it off at the end of term. We were advised incorrectly by a Mortgage Broker who pushed and pushed until we went in for a mortgage we really knew we should not have but because we were struggling at the time did as she said and she has got us into more of a mess than ever saying we can sell our home, which we do not want to do. Now I have lost my job but trying very hard to get another one. This is our home that we have worked hard to keep so do not want to lose it over incorrect advice. Is there any way we can get out of this interest only mortgage or would you have any other ideas?
You must speak to your lender so that they know what your current position is and can take that into account when dealing with you. It is unlikely that they will be able to reduce your payments any further as you are on an interest only mortgage, but they may be able to arrange a payment holiday if you have previously built up overpayments.
With regards to the mortgage advice you received I recommend that you speak to your local Citizens Advice Bureau and enlist their help in drawing up a formal compliant. If you are unhappy with the Broker's resolution to your complaint you can then contact the Financial Ombudsman Service:
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Phone: 0845 080 1800
Fax: 020 7964 1001
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.