Mis Sold Mortgages

Mis-sold Mortgages

Mis Sold Mortgages claims are more prominent than any financial consumer or industry watchdog could have feared. From useless endowments to ill-advised lending and commission seeking brokers the mortgage industry has seen an epidemic of mis-selling leaving many home owners paying too much and at risk of losing their property, Mortgage brokers never sold your Mortgage in your best interest, but were motivated by greed and huge bonus incentives. Don’t let the burden of carrying a mis sold mortgage weigh you down any longer.

So, we know mis-sold mortgages are out there but how do you know if you’ve got one? Well, as a starting point to answering that question, let’s look at how mortgages were mis-sold:

Not In your best interest:

When recommending a mortgage to a client, a broker is supposed to act in your best interest and provide you with a loan that’s appropriate and manageable, tailored to your financial abilities and boundaries, based on your property and income. However, in many cases, brokers have placed clients in a mortgage that was completely unsuitable, simply because it offered him/her a better commission. This is mis selling as a broker always has to act in the best interest of a client when selling a Mortgage.

Unsuitable Mortgage terms:

In some cases a broker or lender has issued a mortgage without fully investigating a client’s circumstances, for example: assigning a mortgage term that runs past retirement age.

Outright misrepresentation:

This is perhaps the worst form of mis-selling and involves a broker omitting essential information, advising you wrongly about a mortgage or choosing not to tell you about its downsides, which by law he has to inform you of, as this is a life time financial commitment. Specific examples of mis-selling can be found in the following circumstances:

- Your mortgage is an endowment mortgage and you weren’t warned of the risks

- You were on benefits when the mortgage was sold

- The commission paid to the broker was not explained to you

- You were advised to take out a self-certification mortgage and you’re not self-employed

- Your mortgage was a subprime borrowing

-You had to pay the broker a percentage of the loan as a separate charge

- You were advised to switch lenders without a full explanation of the fees and penalties involved

These are all common examples of circumstances in which mis sold mortgages have been issued and it’s important to remember that they also apply to borrowings that have been paid off. If you’ve finished paying back a mortgage or no longer have it for some reason, you still may have been mis-sold to and therefore may have a claim to make. It is always worthwhile checking to see if you have been mis sold as it can help your current financial situation drastically, and could be worth £1000’s in compensation and repayments.

Call Reclaims UK today to see if you have a claim, it could be worth £1000’s.

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