What is a Mortgage Securitisation Claim?

Every day we are hearing about the banks being fined and paying out compensation for mis-selling and unfair treatment of customers. From PPI mis-selling to interest rate errors, the financial sectors wrongdoings are challenged.

For decades, banks and building societies have been pooling together and selling on their borrower’s debt obligations. This has been most popular with residential and buy-to-let mortgages, as these are the most lucrative. There is an 8 in 10 chance that your mortgage has been sold, meaning your lender has been paid in full and you no longer owe them any money.

We have partnered with Legal Quest PLC who are pioneering Mortgage Securitisation Claims which affect approximately ten million UK homeowners and buy-to-let landlords whose mortgages may have been sold on to third parties without telling them. A successful claim may result in your existing mortgage balance being cleared and the charge on the property released.

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How does Securitisation Work?

Mortgage Accepted
The majority of UK borrowers are unaware that when they agreed to their terms and conditions, they granted their lender a Power of Attorney along with the right to sell their mortgage and loan on to investors.

Some Months Later
After a suitable period of regular repayments, the lender adds the mortgage to a pool of similar loans which is then sold on to third party investors through a Special Purpose Vehicle.

After the Sale
Once the securitisation portfolio is sold, the lender uses sale proceeds to remove the outstanding mortgage balance from their balance sheet.

What Happens Next
The borrower remains completely unaware that this has taken place as they are seldom informed of the transfer. The lender continues to collect the monthly repayments under a servicing agreement they have with the new party, simply acting as an agent of the SPV/investors.

What does this mean?
When the borrower took out their loan, the lender registered a charge on the property at HM Land Registry. This charge remains in full force until all monies owed to the lender have been repaid. When the mortgage is securitised, the lender is paid in full, meaning that there is no longer any money owed to them and the charge is no longer enforceable, as it has no value.

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Was my Mortgage Securitised?

Legal Quest have confirmed that over 80% of all UK mortgages have been sold under Mortgage Securitisation. This means there is a 8 in 10 chance that yours is one of them.

Despite this, we cannot confirm that your mortgage has been securitised unless you undertake the Legal Quest Validation Process. As a borrower, you would still continue to pay your original lender, unaware that your mortgage had been sold. To find out if your mortgage/loan has been sold, transferred or assigned to an undisclosed third party, Legal Quest must first conduct a Legal Review of the documents held by your lender, in relation to your mortgage. This is carried out by submitting a Data Subject Access Request, on your behalf. Following receipt of the DSAR, Legal Quest will review the paperwork provided by your lender and issue you with a Legal Opinion advising whether your mortgage has been securitised, or not.

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Find out if you're eligible for a Mortgage Securitisation Claim.

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How does a MSC work?

Sign Up

Sign up for the Validation Process today to see if you qualify for a Mortgage Securitisation Claim.

Welcome Pack

Following Sign Up you will recieve your Welcome Pack in the post containing all you need to know and instructions on what to do next.

DSAR

Once we have recieved your Welcome Pack back, the Legal Quest Team will prepare your Data Subject Access Request.

Legal Review

Under the Data Protection Act 1998 your lender has 40 days to supply the information requested. Once this is recieved Legal Quest will carry out a Legal Review.

Legal Opinion

If Legal Quest find evidence that your mortgage has been securitised you will be issued with a Legal Opinion and invitiation to proceed to Dispute.

Dispute

If you choose to proceed to Dispute you will be added to a Class Action against your lender. Legal Quest will represent you on a No Win, No Fee basis, covering all court costs and legal representation.

Is there a cost?

To sign up for the Validation Process you are required to pay an upfront fee of £260 inc VAT. This fee includes the cost of submitting a Data Subject Access Request, a Legal Review of the documentation received (usually between 500 – 1600 pages) and provide you with a Legal Opinion based on the results.

If you receive a Negative Legal Opinion, meaning that your mortgage has not been sold, you can take advantage of the Money Back Guarantee. Simply fill in the claim form and you will receive a refund of the upfront fee paid, less the £56.40 cost of disbursements.

If sufficient evidence is found that your mortgage has been securitised, then you will be invited to join the Class Action. The Dispute Process works on a No Win No Fee Basis, for the amount of 24% inc VAT of the benefit you receive.

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