Pensioners suing for £400,000 over a self-certification interest-only mortgage have agreed to mediation to try to avoid a full-blown trial.
Norma and Robert Mason began suing Coventry Building Society specialist lender Godiva Mortgages in April 2013 over a mortgage taken out in 2008, before self-cert loans were banned by the regulator.
The case had its first court hearing on 9 May, by which point Godiva had incurred legal costs of £241,000.
The case will move to mediation in September to give both sides a chance to reconcile. If this fails, the case will proceed to a three-day trial.
Godiva declined to comment.
Papers filed at the High Court by the Masons in 2013 say the couple kept up the interest payments on their loan but could not repay Godiva when the loan ended in 2013. They say they are out of pocket, the lender should not have lent to them and it did not check their ability to repay.
But Godiva’s defence says the Masons could sell the property and repay the loan, and the couple’s loss is their fault.