MoneyMagpie

Apr 13

Mis-sold mortgages: Find out if you can claim

If you’ve been sold a mortgage after November 1, 2004, you may be able to make a claim on the basis that the mortgage was mis-sold. Claim Your Mortgage runs an easy to use service for making a claim. Read on to find out everything you need to know about mis-sold mortgages and whether you’re in a position to earn compensation.

 

What does mis-selling mean?

Business man holding two house models in different colours

The government run Money Advice Service defines mis-selling as: “Mis-selling means that you were given unsuitable advice, the risks were not explained to you or you were not given the information you needed and ended up with a product that isn’t right for you”.

 

How can a mortgage be mis-sold?

Woman shaking hands with banker

Rules governing the sale of mortgages state that lenders and brokers must ensure the mortgage is affordable throughout the whole time of repayment. They must consider your retirement in that equation. There is an almost endless list of ways that mortgages can be mis-sold. The most common are:

Interest-only mortgages:

Cheap in the short term, but costly in the long term. Your broker must explain this to you, and compare the cost of an Interest Only mortgage to a Capital Repayment mortgage. They must explain that you’ll have to switch from the former to the latter eventually.

 

Subprime mortgages:

Usually recommended to borrowers with poor credit history, CCJ’s or low credit scores. These are more expensive than typical mortgages. If you were advised to get one of these, even though you have a normal credit rating, then you have likely been mis-sold.

Post-retirement mortgage: 

If you retired and were still paying off your mortgage, did you discuss this? How will you make repayments? You should have been advised on this.

Debt-consolation:

Have you ever been advised to move all your unsecured loans onto your mortgage? Were you informed that although your monthly outgoings would at first be lower, you would be extending the length of your debt and increasing the interest?

Self-certification: 

If you were encouraged to take out a self-certified, or fast-track mortgage, when this may not have been the best option, you could make a claim.

Commission: 

If you were not notified of the commission received by the adviser from the lender, you could claim.

 

Eligibility

Magnifying glass highlighting one house of many

Your mortgage must have been sold to you after the 1st of November, 2004 through a broker. If this applies to you and the above scenarios ring a bell, or you feel suspicious about how you acquired your mortgage, you are in a good position to get compensation.

 

How to claim

Mortgage broker advising couple

Claim Your Mortgage can handle your claim for you. They offer a free, no obligation consultation for each case, and will determine whether you have indeed been mis-sold. They won’t use any obscure legal jargon and can walk you through the whole process quickly and easily. They’re currently running claims up to the value of £325,000, so you could be in for a good sum!

 

have your details ready

Calculator coins and paper house model

Claim Your Mortgage will need the name of your mortgage provider and the date it was started to kick things off. It doesn’t matter if you don’t currently own the property that was mortgaged.

 

Is it that easy?

Yes.

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