- 1 Endowment policies
- 2 Interest Only Mortgages
- 3 Remortgaging to clear your debts
- 4 Household budget analysis
- 5 Self Certification mortgages
- 6 Mortgages running past retirement
- 7 High broker fees
- 8 Which? Money Compare
- 9 What happens if you have been mis-sold a mortgage?
- 10 How do I complain about mis selling?
- 11 Can I claim for a mis-sold mortgage?
- 12 Is mis selling illegal?
If you were advised to take an investment to pay off your mortgage afterwards, did you discover later that you were not getting enough repayment? See the article : My in-laws are underwater on their mortgage and their home is in disrepair. Should they just walk away and move in with us?.
If so, it could constitute a policy against unfair selling. Read our guide to badly sold donations if you think this may be the case for you.
Interest Only Mortgages
If you were only paying off the mortgage interest every month, the adviser should have told you how you would pay off the mortgage when it ended. Read also : I think I’ve been mis-sold my mortgage, what can I do?.
If your broker or lender has not discussed this with you or provided examples of the cost of a “Capital and Spayment” mortgage compared to the lower “Interest Only” mortgage costs, this would be an example of a mis-selling.
Moreover, has it been explained to you that you may have to convert your mortgage into a repayable loan instead of relying on rising house prices? If not, it could also constitute a fraudulent sale.
Use our template letter if you have a complaint about mis-selling of an interest rate mortgage.
Remortgaging to clear your debts
If you wanted to consolidate your debts, were you told it would be cheaper to put all your loans, credit cards and financing in a mortgage? Read also : I think I’ve been mis-sold my mortgage, what can I do?.
If not, you can convert short-term debts to long-term debts by adding them to your mortgage.
Did the advisor explain to you that while you will initially reduce your monthly expenses, you can also extend your debt repayment period and significantly increase the amount of interest you will pay?
If not, it could be considered a mis-selling.
File a complaint with your provider using our letter template if you have been encouraged to take out a loan again to pay off your debts.
Household budget analysis
Have you been asked to do a household budget analysis? Were you asked how much was your monthly income and what were your monthly expenses?
Have they agreed with you how much money you have left each month after paying all the bills, ie Disposable Income?
If this has not been done, you may unknowingly over-commit yourself to a mortgage that you cannot afford.
Self Certification mortgages
Were you asked to provide proof of income, such as payslips or audited receipts, that could prove your income?
If not, were you encouraged to take out a mortgage called ‘Self Cert’ or ‘Fast Track’ where you did not need to prove your income?
These mortgage products provided much higher commissions and it was for this reason that they were very popular with some brokers.
If this was your case, your mortgage may have been mis-sold.
Mortgages running past retirement
Is your mortgage expected to exceed retirement age? Has this been told to you?
Has your broker or lender talked about how to pay off your mortgage when you retire?
Taking a 20-year mortgage at the age of 50 is a good example.
The average retirement age is 65, which means you have 5 years to pay off your mortgage.
If, at the time of concluding the contract, the advisor did not take into account whether the client could afford the repayment after the age of 65, it may have been mis-sold.
Use our letter template to file a complaint if you believe it has been sold incorrectly.
High broker fees
Have you paid unreasonably high fees to the broker or advisor who arranged your mortgage?
Have you been informed what the fees will be?
Were they added to your mortgage without you knowing it, so now you pay interest on them every month?
If any of the above applies to you, you may have a case of mis-selling and you can use our template letter to file a complaint with your supplier.
Which? Money Compare
Taking out a mortgage is a complicated process. Visit Which? Money Compare to compare hundreds of mortgage loans and find ones with the best rates and the best customer service.
Which Ltd company is the representative appointed by the introducing person? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which? Mortgage advisers who? Insurance advisors and what kind? Money Compare are trade names of Which? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
Several cases of mis-sold mortgage loans explain why claimants may be owed compensation. This could be because: The applicant has already retired after the end of the mortgage payment. … Your lender has taken out a fixed rate mortgage but has been advised to change it without notice of any exit fees.
What constitutes a mis-sold mortgage?
You may have been mis-sold as a mortgage product if, at the time you took out the loan, your lender, financial advisor or broker was unable to: properly assess your individual circumstances; He has not provided you with information about the available options; or.
Could I have been mis-sold an interest-only mortgage?
UNSOLDED MORTGAGE CLAIMS This means you can pay month after month for years and never really own your home and still have your full mortgage outstanding at the end of the term. But if you were forced into an interest rate mortgage and it was not suitable for it, you may be able to claim compensation.
How do I complain about mis selling?
If you have badly sold a financial product
- Step 1 – Gather all the information you need. You don’t need to find specific evidence, but you do need to explain your problem. …
- Step 2 – File a complaint with your supplier or advisor. …
- Step 3 – Ask the ombudsman to investigate the matter.
How long do companies have to respond to a complaint?
Acknowledgment of your complaint Unless they have dealt with your complaint within 3 working days, all companies are required to respond in writing to let you know that they have received your complaint.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
The company must designate an individual within the company or in the same group as the company to be responsible for overseeing compliance with DISP 1 by the company. The designated person must have an FCA management role within the company or within the same group as the company.
Can I claim for a mis-sold mortgage?
Making an Mis-Sold Mortgage Claim In the event of a mis-sold mortgage claim, you need to prove: that the broker / lender / advisor has sold you the mortgage you are claiming against. That they breached one or more of their obligations under the FCA rules.
Are interest-only mortgage claims successful?
You may still find that there are a large number of successful interest-only mortgage claims, but most commentators agree that making claims for this product is likely to have a lower success rate than PPI for which an Independent Financial Services Ombudsman The (FOS) maintained the large majority of the complaints received.
Are trusted mortgage claims legit?
At the time of writing Trusted Mortgage Applications it had a rating of 4 out of a possible 5 star out of over 800 reviews. This is very good.
Is it common for mortgages to be sold?
They find out that their mortgage has been sold. This may sound disturbing. But it’s actually quite common. And it will not affect the loan’s interest rate, terms, or the amount owed.
Is mis selling illegal?
In its simplest form, misselling means recklessly misrepresenting a product or service in order to successfully complete a sale. … Financial misselling is illegal in most countries. A prime example of misselling would be an unrelated person who has been manipulated into purchasing life insurance.
What is mis-selling in insurance?
Consequences of mis-selling insurance policies in India Imagine the consequences of mis-selling the wrong products where the seller hardly sells the insurance policy without understanding your real needs and because of insufficient product knowledge.
How do you spell mis-sold?
The definition of “Bad Sold” This is a bad sold payment protection insurance. Now they will feel badly sold under the law of planning. There is no suggestion that any of them have been mis-sold. I feel we were sold badly and we want compensation.