Reduction in Your Mortgage
In the event of a successful win, the current balance of your mortgage will be cleared and the charge on your property released. You will, however, have a liability to ourselves 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. We may be able to assist you by agreeing a new mortgage with your lender, on the same or better terms and we will pay all reasonable costs incurred.
Mortgage Repayment Refunds
In addition to the reduction of your mortgage, we may negotiate a refund of mortgage repayments you have made from; a) the point when we filed the Dispute or; b) the point when your mortgage was securitised If any payments are refunded, the amount would be classed as a benefit to you, however, would not be included under the CFA Agreement and no fees would be charged on this amount.
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. In addition, any award other than legal costs is subject to the CFA payment terms.
This proposed Class Action is the first of its kind in the UK and therefore has not yet been tested in court. While we are confident that we have a very strong case, there are no guarantees that the Courts will find in your favour. You should consider whether you wish to take your Mortgage Securitisation Claim (MSC) to its final conclusion, or not. If not, your only benefit from the Validation Process may be the knowledge that your lender has sold your mortgage and that the new owner may be in a position to impose new terms and conditions and determine interest rates in the future, or not.
What happens if you lose in court?
Prior to any Court action, we will arrange a special Insurance Policy called After the Event Legal Expenses Cover, at our cost. This provides full indemnity for your own and the oppositions legal fees, court fees etc. There is no possibility that you will be asked to contribute anything, should you lose the case. What happens if the third party investor your mortgage was sold to tries to claim against you in the future? In order to reduce any financial risk of any dispute or court action, we will arrange an Indemnity Fund and 'Before the Event' Legal Expenses Insurance, all at our expense. This policy will be in your name, which ensures that if at anytime in the future, the party to whom your lender had sold, transferred or assigned your mortgage to, claims ownership of the debt, then sufficient funds will be available under the six year BTE policy, to pay your legal defence costs incurred in defending the action. You will NOT have to contribute any money. In the unlikely event that you lose or the third party are able to show they have legal and equitable title, you may be required to pay the original mortgage balance, to them. So that, having paid our fees previously, you then find that you owe them the full balance of the original mortgage, the Indemnity fund, backed by a further Insurance policy, will reimburse or cover any additional sums over and above the original mortgage balance. We will ensure that you will NOT be financially disadvantaged by taking the Legal Quest MSC. As a further safeguard, Legal Shield Protect Ltd, the administrators of the Indemnity Fund, will place 50% or more of the 30% fee you paid us, into the safekeeping of a major Insurer or Financial Institution, for a period of not less than 6 years, this being the time-frame in which a third party can lodge a claim against you. This fund plus additional cover, will make up any shortfall. You MUST continue to pay your mortgage until such time as you gain a Win, otherwise you may find that your lender places you into default prior to any action.