Interest-only  

Harlequin mortgage repayment plan costs broker £30K

“It follows I believe that the adviser was put on notice as to Mr G’s particular circumstances and the nature of the Harlequin investment. 

“I believe if the adviser had made Mr G aware of the risks, and if he’d appreciated those risks, he wouldn’t have taken out the additional borrowing on an interest-only basis. It was unaffordable, and not suitable given his documented income and expenditure.” 

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Intrinsic Financial Planning Ltd was told to pay Mr G £30,000 plus 8 per cent interest to represent the additional borrowing taken on an interest-only basis used to fund the deposit for the Harlequin property investment.

Plus Intrinsic must cough up for the interest payments he has paid to service that £30,000, less the contributions made by Harlequin towards those costs.

Intrinsic also has to pay Mr G the mortgage arrangement fee of £995 which was added to the loan, plus the mortgage interest applied to that sum; along with £750 for the trouble and upset he has suffered while having a mortgage debt against his home he had no means of repaying. 

emma.hughes@ft.com