'Golden ticket' tarnished

Mortgage holders warned of 'empty promise' claiming they can clear loans

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Mortgage holders are being warned that notes offered online that may appear to be a “golden ticket” to clear their debts are in reality an empty promise which could make their financial problems worse.

Some claims are being made online that borrowers can avoid paying their mortgage by sending their lender a “promissory note”, the Financial Conduct Authority (FCA) said.

The notes claim another party, such as a trust, will either make money available to make mortgage repayments, or claim the note itself should be accepted by the lender to repay the mortgage in full.

Borrowers sending in the notes are often in financial difficulties and are paying for them in the hope it will solve their problems. Some people may end up spending hundreds of pounds.

The regulator said a promissory note is not an acceptable form of mortgage payment - and if one is sent to a lender that does not mean the customer no longer has to repay their mortgage.