Missold Mortgages

One recent undercover investigation found that only four out of fifty mortgage advisers were offering adequate advice to consumers – a very bad statistic when you think that mortgages are the biggest and most important loan that most of us ever take out.

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In 2008, the FSA (Financial Services Authority) announced that they were concerned about the growing problem of mortgage mis-selling and that they were launching an investigation. Tony Boorman, the principal financial ombudsman, told Channel 4 News that:

"Certainly we see cases of mis-selling where we frankly find it extremely difficult to believe that a responsible lender, a responsible intermediary, could have in all conscience advised the customer that this was a sensible product, a sensible size of loan for them to take out given what that lender, given what that broker knew about the customer's circumstances..."

Citizens Advice have seen the effect that missold mortgages have had on people. The Social Policy Officer of Citizens Advice, Peter Tutton, said:

"We've seen people on benefits, maybe unable to work, given mortgages that they could never really service... In one case mortgage costs made people's expenditure £200 a month more than their income and there was no way that mortgage was going to stand up over time."

Bad financial advice, encouraging consumers to borrow more than they should and mis-selling financial products such as mortgages and endowments can lead to people getting into financial difficulties and even losing their homes.

The FSA investigation has led to firms and brokers being fined for failing to give suitable advice and not explaining all the different deals and repayment vehicles available but what about the people who are already suffering from missold mortgages? Well, with the FSA taking this problem seriously, you may just have grounds for redress and you may be able to make a claim for compensation against the bank or broker.

If you feel that you have been missold a mortgage because you received inadequate advice or were allowed to borrow more than you should, then you should seek advice on making a compensation claim.

Here are some examples where we may be able to help you with a missold mortgage claim:-

-- You were sold a mortgage while you were on benefits
-- You were not properly assessed to check that you could afford the monthly payments
-- The mortgage runs past retirement age
-- Your situation was wrongly assessed
-- You were advised to switch to another lender without being told of all the fees and penalty charges that would actually make you worse off.
-- The commission paid to the broker by the lender was not explained to you.
-- You were a council tenant who was advised to buy your council house without the lender undertaking an adequate assessment of your financial situation.
-- You were advised to take out a self-certification (self-cert) mortgage even though you are not self-employed, so that you could borrow more.
-- You had to pay the broker a separate fee which was a percentage of the loan.
-- Your mortgage was within sub prime borrowing or fell under adverse credit.
-- Your mortgage is an endowment mortgage and you were not warned of the risks involved, how your premiums would be invested and advised that it was a long-term investment vehicle.

These are just a few of the situations where people have been missold mortgages, and the list is not exhaustive. You may have a different circumstance that is just as relevant so contact us to see if you have a claim for missold mortgage compensation.

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