Challenge Your Mortgage ~ Mortgage Securitisation Claims

Mar 23, 2020

We're going to show you a solution which, if successful, could clear or substantially reduce your existing mortgage balance, even after the payment of the 30% (incl. VAT) No Win - No Fee amount to a panel law firm representing your Mortgage Securitisation Claim. [Note: 25% + VAT= 30%]. 

In October 2016 You And Your Cash ("YAYC") interviewed Stephen Swain, Managing Director of Legal Quest Limited (now Legal Quest plc). YAYC wanted to complete due diligence prior to promoting the Mortgage Securitisation Claims on the Show.

Part 1 of the interview can be viewed above. To watch the entire interview click here

A Mortgage Securitisation Claim costs £1.00 with WAIVER CODE "YAYC100"

What is Mortgage Securitisation?

Mortgage Securitisation is a complex and intricate process, which even the most high-profile bankers and economics professors do not seem to fully understand. We, together with associated parties, have spent over 14 years carrying out extensive research into how, and why, banks across the globe carry out securitisation, with a focus on the UK Financial institutions and, the simple answer is as follows:

Bank regulations may impose limits on their lending or maintenance of their loan books, therefore, some will decide, from time to time, to remove existing assets from their books.

Selling existing residential and commercial mortgages can be a profitable option. Banks have as a result, bundled up hundreds, often thousands, of mortgages and sold them on to third party investors. As an integral part of the sale, when they have sold on the asset, they must remove the loans from their balance sheet, which allows them to meet regulatory requirements and lend more money.

What could this mean to you?

If your mortgage has been securitised, your financial obligation to your lender under your original loan contract will have been repaid in full, by the investors that they sold your mortgage debt to, possibly at a profit. It is our view, that once your lender removes your mortgage from their balance sheet, your contractual obligation to them, ceases, your contract with them ended. You have continued to pay your mortgage repayments, on what is essentially a non-existing contract, through your lender, who acts as a collection agent for the investors.

In the majority of cases, the new owner has the right to set interest rates, unbeknown to you.

This is why there is a definitive indication that your lender is in breach of the basic rules and regulations which must be applied to all regulated mortgage contracts under the Mortgage Code of Business (MCOB) rules. The reason is that the new owner(s) of your mortgage debt may have different rates of interest or have enforcement policies, more aggressive than your original lender and, they, in turn, may sell it on and so on. All without notification to you.

The major error which appears to occur commences by them not completing the paperwork correctly and the new owner(s) of your original mortgage debt not amending the charge the original lender held on your property. The moment your mortgage liability has been paid, your lender does not hold any rights to the charge, as your obligation to them has been settled, it is up to the new owner(s) to register their interest, which during the research appears to have never taken place.

We believe there is no valid contract which binds a borrower to any new owner(s) when their mortgage debt was sold. One major lender sold in excess of 880,000 mortgages on a single day, the paperwork, if completed correctly, would have taken over three years to complete. 

Potential Benefits

Reduction in your Mortgage

In the event of a successful win, the current balance of your mortgage could be cleared and the charge on your property released. If this is the only result, you will, however, have a liability to your appointed panel law firm under the CFA agreement. If you are unable to settle this liability from your existing funds, a new mortgage or loan may need to be arranged during the settlement process and a new charge registered with HM Land Registry.

Mortgage Repayment Refunds

In addition to the possible reduction or clearance of your mortgage, your panel law firm will negotiate with your lender for a refund of the mortgage interest repayments (and may negotiate with your lender for a refund of mortgage capital repayments) you have made from:

a) The point when your mortgage was securitised.

b) Inception, if the MCOB’s breach deems the contract void.

c) With the statutory interest surcharge calculated at 8% on the interest portion paid

If any payments are refunded, the amount would be classed as a benefit to you.

Compensatory Damages

In addition to all the above, should the matter go to court and the case is won, the court may award both actual and compensatory damages, together with legal costs and related matters against the lender. It is important to understand that any award of costs, is outside the terms of the CFA. In other words, please be aware that if the panel law firm’s costs/expenses, plus your third party disbursements, are recovered from the other side, you will still be liable for the 25% + VAT CFA payment, however, the value will only be based on the net benefit to you. This is due to the costly risk that the law firm takes, should the matter be unsuccessful, which is normally covered by an After the Event (ATE) insurance policy.

To find out more and learn about the potential risks and pitfalls, click here

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