Dentist 'crippled' by £3k a month mortgage charge
Worried: Dr Day outside the Appledore Dental Surgery in Binfield.
A DENTIST is fighting for a refund claiming she was "mis-sold" a mortgage protection plan which has crippled her financially.
Teresa Day, who owns Appledore Dental Surgery in Binfield, has not paid herself a wage for the past year and has had to invest her savings into her business, after being hit with an unexpected £3,000-a-month fee from her bank.
In 2007 she took out a £750,000 fixed-rate mortgage and loan and her bank recommended a 'cap and collar' protection scheme to safeguard against rising interest rates.
But when interest rates crashed in 2008, Dr Day claims that - in addition to the relatively high rates she was now paying - the bank started introducing a £3,000 a month charge for the protection scheme.
To read our interview with Dr Day, pick up a copy of the Bracknell News - out now.
Have your say. Post a comment on this article.
Nov 13, 09:06
But it sounds like interest rates have dropped, her payments have not (fixed schedule), but it seems a crazy product that charges you more than if you'd chosen a tracker-type mortgage.
Someone who takes out a £750,000 mortgage is technically still a consumer, and should get the protection everyone does, but I'd expect them to have a financial advisor.
So I think she did get bad advice, either from the Bank, or from her advisor (both of whom, I assume, get either commission or a fixed fee for the advice).
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