Stephensons’ Debt and Repossession team recently saved a woman’s home, after it was proven in Court that she had received poor advice from a mortgage broker, who had taken advantage of her disability.
The client, a cerebral palsy sufferer, began a relationship with a man in 2004. Very quickly into the relationship, he told our client she was ‘sitting on a goldmine’ and shortly after he introduced her to a mortgage broker. The broker arranged to sell her existing mortgage of £16,000 to a new lender, for which he gained commission. Although present at meetings with the broker, our client did not take part.
More secured loans, totalling more than £100,000 quickly followed. The increasingly high monthly repayments were simply not affordable to our client, who receives state benefits because of her medical condition.
The broker received a financial gain on the arrangement of each of these loans and it was later stated in Court that all the money borrowed went to our client’s partner.
Our client faced repossession after two mortgage lenders took legal action, because of her failure to repay the mortgages. They had denied knowledge of her medical condition. However, our Debt and Repossession team was able to prove, during the trial, that the lenders and the solicitors involved in the transactions were aware of our client’s medical condition, and as a result all the loans were set aside.
Now, our client is only responsible for the repayment of her original mortgage loan plus interest. Her legal costs have been paid by the lenders and the solicitors involved.
Solicitor Andrew Leakey, Head of the Debt and Repossession team, said: “This was a frightening case, where a mortgage broker appears to have paid little heed to our client’s medical condition or needs. We’re absolutely delighted that her home has been saved.”
