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DB Mortgages – Mis-sold and Mis-managed

DB Mortgages, originally part of the Deutsche Bank Group, sold vast amounts of mortgages, particular sub-prime mortgages, and more specialist products such as ‘self-certifying mortgages’.

Sub-prime has become something of a dirty word after the financial crisis in 2008, and not without reason. Many of these mortgages were given to people who were unlikely to be able to pay them back. The sheer volume of sub-prime mortgages sold also meant that sales and customer service practices became sloppy, resulting in an £840,000 fine from the then Financial Services Authority.

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Were You Mis-sold a Mortgage by DB Mortgages?

DB Mortgages only operated in the mortgage business for one year, but during this short time they managed to set up £1billion in loans. Irresponsible lending contributed to the financial crisis, as many banks loaned huge amounts of money to just about anyone, in order to sell on the mortgages as investments to businesses and wealthy individuals.

When they were fined in 2011, The Financial Services Authority (FSA) said that the bank’s staff:

  • Failed to check if some customers would be able to afford their mortgage repayments if their loan lasted into retirement
  • Failed to offer cheaper mortgages to some customers who asked for self-certified mortgages
  • Failed to check if some customers had considered where they would live if they planned to sell their homes to pay off their interest-only mortgages
  • Levied admin fees that didn’t accurately reflect the cost of administration
  • Treated borrowers in arrears unfairly

How is a Mortgage Mis-sold?

There are many ways in which a mortgage can be mis-sold. A mis-sale has usually happened if the product wasn’t appropriate for you or was unsuitable to your needs.

Circumstances in which a mortgage may be mis-sold include:

  • Failing to offer cheaper products to some of their customers when there were such mortgages, and not offering their customers the best deal
  • Your lender failing to discuss with you how you’ll repay the rest of your mortgage on an interest-only mortgage
  • Being advised to remortgage your house as a way of consolidating your debts

These are just a few ways in which you may be mis-sold a mortgage. If you’re in any doubt, it is worth contacting a specialist in financial mis-selling claims to discuss your options.

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