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Sinclair: ‘Claims chasers will struggle with interest-only cases’

Claims firms will struggle to win interest-only mortgage cases or even find borrowers who want to lodge claim, according to the Association of Mortgage Intermediaries.

Some commentators have warned interest-only will be the next big misselling scandal, following the payment protection debacle.

Money Marketing’s sister title Mortgage Strategy recently revealed claims management company Money Boomerang is set to launch a TV advertising campaign to specifically target interest-only misselling.

But speaking at the Mortgage Business Expo in London today, Ami chief executive Robert Sinclair (pictured) said there was no systematic misselling of interest-only mortgages.

He said: “For any claims managers that might be in the room, or might be listening to my words, my answer would be do not be silly – you are not going to get anywhere, there is no systematic misselling of interest-only.

“You will struggle to get compensation out of it and will struggle to get people who will want to claim.

“I actually do not believe people were missold interest-only. Most people walked into this eyes wide open, knowing exactly what they were doing.”

Sinclair warned claims firms that target interest-only cases could find they are giving regulated mortgage advice if they recommend a customer changes their repayment method.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I am sure that this is likely to be proved correct but, don’t forget the sour rationale of these people. The aim is to get the matter before the FOS.

    The FOS operates an inquisitorial stance which means that even though the specific complaint may be rejected they may chance upopn some other aspect that they don’t like and uphold a complaint that has not been made!

    Regardless, the potential for case fees and the vast amount of time spent dealing with even the most artificial concotion will provide for great aggravation.

  2. well thats that then. Nothing to see here

  3. I might be a bit thick, but what exactly would someone be complaining about? I mean, if a claim was upheld, and someone had an IO mortgage, then what? Replace is with a C&I and the lender requests several years of capital repayment, or says, “Ok, we should not have sold you that, can we have your house please?”

    Please enlighten me, or at least confirm I am indeed thick!

  4. I’ll have some of what Sinclair is smoking, must be thoroughly hallucinogenic stuff to make him babble out such drivel.

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