- 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 Is mis selling illegal?
- 11 How do I complain about mis selling?
- 12 Can I claim for a mis-sold mortgage?
If you were advised to make an investment to pay off your mortgage when it ended, did you find out later that you would not be getting enough? This may interest you : My in-laws are underwater on their mortgage and their home is in disrepair. Should they just walk away and move in with us?.
In that case, this may constitute an incorrect sales policy. Read our guide to appropriations sold incorrectly if you think this may apply to you.
Interest Only Mortgages
If you were paying only the interest on your mortgage each month, the consultant should have warned you about how you would pay your mortgage when it ended. See the article : I think I’ve been mis-sold my mortgage, what can I do?.
If your broker or lender did not discuss this with you or gave you examples of the cost of a Capital and Repayment mortgage compared to the lower costs of an interest-only mortgage, then this would be an example of an incorrect sale.
Also, has it been explained to you that you may have to switch your mortgage to a Refund mortgage, instead of depending on rising home prices? Otherwise, this can also constitute an improper sale.
Use our letter template if you want to complain about the improper sale of a mortgage at interest only.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you warned that it would be cheaper to put all your loans, credit cards and finances in your mortgage? 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?.
Otherwise, you can exchange short-term debt for long-term debt, adding it to your mortgage.
The consultant explained that although you were initially reducing your monthly expenses, can you very well extend the term of your debt and greatly increase the amount of interest you would be paying?
Otherwise, this can be considered a misleading sale.
Complain to your provider with our letter template if you are encouraged to remortgage to settle your debts.
Household budget analysis
Have you been asked to do an analysis of the family budget? Were you asked how much your monthly income was and what your monthly expenses were?
Did they calculate with you how much money you had left each month after paying all your bills, that is, your disposable income?
If this was not done, you may have unconsciously committed yourself too much to a mortgage that you could not afford.
Self Certification mortgages
Have you been asked to provide evidence of your income, for example, payment receipts or audited bills that could prove your income?
If not, were you encouraged to do what is known as an ‘Auto Cert’ or ‘Fast Track’ mortgage, where you didn’t need to prove your income?
These mortgage products paid much higher fees and were very popular with some brokers for that reason.
If this applies to you, your mortgage may have been poorly sold.
Mortgages running past retirement
Has your mortgage passed retirement age? Has that been pointed out to you?
Did your broker or lender discuss how you would meet your mortgage payments when you retired?
A good example of this would be if someone made a mortgage for 20 years at age 50.
The average retirement age is at 65, which means that there will be 5 years left to pay the mortgage.
If, at the time of the agreement, the consultant did not consider whether the customer could make payments after the age of 65, then the customer may have sold his mortgage in error.
Use our model letter to complain if you think it was under-sold.
High broker fees
Did you pay excessively high fees to the broker or consultant who provided your mortgage?
Were you informed of what the fees would be?
They were added to your mortgage without you knowing it, so are you now paying interest on them every month?
If any of the above applies to you, then you may have a case of improper selling and you may want to use our model letter to complain to your provider.
Which? Money Compare
The mortgage is a complicated process. Visit which one? Money Compare to compare hundreds of mortgages and find those with the best rates and the best customer service.
Which Ltd is a representative nominated by the presenter of which? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
What? Which mortgage consultants? Insurance consultants and which ones? Money Compare are trade names of which? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
Some cases of incorrectly sold mortgages are quite clear as to why the claimant can receive compensation. This may be because: The claimant has already retired after the mortgage end date. … Your lender had a fixed rate mortgage, but was advised to change without being informed of any fees for leaving the scheme.
Could I have been mis-sold an interest-only mortgage?
MIS SALE SOLD MORTGAGE CLAIMS This means that you can be paying month by month for years, and never be the true owner of your home, and still have the full amount of the mortgage outstanding at the end of the term. But if you are pushed into a mortgage with interest only and it is not suitable for that, you can make a claim.
What constitutes a mis-sold mortgage?
You may have sold a mortgage product in error if, at the time you made the mortgage, your lender, financial advisor or broker did not: adequately assess your individual circumstances; Failure to provide information about the options available to you; or.
Is mis selling illegal?
In its simplest form, misselling means recklessly misrepresenting a product or service to successfully complete a sale. … The incorrect sale of money is illegal in most countries. A basic example of incorrect selling would be a person without dependents being manipulated to purchase life insurance.
What is mis-selling in insurance?
Consequences of improper selling of insurance policies in India Imagine the consequences of improper selling of wrong products, in which the seller makes a forced sale of an insurance policy without understanding his real needs and due to his inadequate knowledge about the product.
How do you spell mis-sold?
Definition of ‘incorrect sale’ It is an incorrect sale of payment protection insurance. Now they will feel badly sold under the planning law. There is no suggestion that any one was specifically sold incorrectly. I feel like we were poorly sold and I want compensation.
How do I complain about mis selling?
If you sold a financial product badly
- Step 1 – Gather all the information you need. You don’t need to find hard evidence, but you do need to explain your problem. …
- Step 2 – Complain to your provider or consultant. …
- Step 3 – Ask an ombudsman to investigate.
How long do companies have to respond to a complaint?
Confirming your complaint Unless they resolve your complaint within 3 business days, all companies are required to respond in writing to inform you that they have received your complaint.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
A company must nominate an individual in the company, or in the same group as the company, to have responsibility for overseeing compliance with DISP 1. The nominated individual must be performing an FCA governance role in the company or in the same group as the company.
Can I claim for a mis-sold mortgage?
Making an incorrectly sold mortgage claim In an incorrectly sold mortgage claim, you will need to prove: That a mortgage has been sold by the broker / lender / consultant against which you are claiming. That they have violated one or more of their obligations under FCA rules.
Are trusted mortgage claims legit?
At the time of writing, reliable mortgage claims had a possible 4-star rating out of 5 stars out of more than 800 reviews. That is great.
Is it common for mortgages to be sold?
They discover that their mortgage has been sold. This may sound alarming. But it is actually quite common. And it will not affect the rate, terms or amount owed on the loan.
Are interest-only mortgage claims successful?
There may still be a large number of successful interest-only mortgage claims, but most commentators agree that making a claim for this product is likely to have a lower success rate than for PPI, where the Financial Ombudsman Service (FOS) maintained a significant majority of the complaints received.