David and Sarah took out a mortgage with Rooftop Mortgages in 2006. The couple, who had previously never missed a payment fell into arrears following an emergency eye operation David had to have. They received their statement from Rooftop and were shocked to find charges of around £1500 made up of ‘arrears management fee’s’. The couple challenged the unfair fee’s and sent a letter to rooftop requesting an explanation for such a high amount of charges. Rooftop replied by stating that the charges were in accordance with the Mortgage terms and conditions that they had agreed to when they took out the mortgage. Sarah wrote a further letter requesting a full breakdown of the charges, Rooftops reply was that the charges were to ascertain the reasons for the arrears, help bring the account up to date and monitor arrangements’. On this basis Rooftop refused to give the couple a refund. The result was that money that could have gone towards the arrears payments went on needless charges placing the couple into further debt and financial difficulty.
mis-sold mortgages
High charges from Rooftop Mortgages
Thursday, February 25th, 2010Buy-to-let mis sold mortgages from Rooftop Mortgages
Thursday, February 25th, 2010James held a buy to let mortgage with Rooftop Mortgages. He took the mortgage at a reasonable fixed rate. After his 2 year fixed rate period James had no remortgage options available to him – those offered required large lump sums which he did not have. Rooftop had ceased trading and would not negotiate on their fixed rates. This left James paying a total of £600 a month at 8.91%. Although he had never missed a payment rooftop was not willing to budge. James struggled and eventually his home was at risk of repossession when he failed to sustain the high payments. It was clear to James that rooftop were much more willing to see a borrower go under than place him on a reasonable interest rate that was still profitable for them.
Abbey recognises fast track problems
Wednesday, February 24th, 2010As of 1st March all brokers using the abbey fast track scheme (which many use as self certification is no longer available), will be required to keep proof of all income for at least two years.
If a broker fails to to keep the evidence then they will be banned from using the service for three months. The broker must then reapply for fast track by signing a document to agree to all the terms and conditions. If there is a 2nd breach the individual broker will no longer be able to access the fast track system. Currently Abbey carries out random monthly checks on brokers who have submitted fast-track applications.
The Abbey also confirmed that from its past past experience brokers had not always kept proof of an applicants income.
Bobby Kennedy, director of Gravitas Law said, “For too long know brokers have manipulted lenders automated scoring systems and used fast track as an alternative to self certification. Applicants were granted loans that they couldn’t afford and history has shown that the level of arrears is higher on fast track cases.”