If you had been advised to take out an investment that would pay off your mortgage once it ended, did you later discover that you would not have been paid enough? 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, this could constitute an improper sales policy. Read our guide to poorly selling equipment if you think this might apply to you.
Interest Only Mortgages
If you only paid interest on the mortgage each month, the consultant would have had to tell you how you would repay the mortgage once it ended. On the same subject : 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 repayment and principal mortgage versus the lower costs of an interest-only mortgage, then this would be an example of a mis-selling.
Also, has it been explained to you that you may need to convert your mortgage into a repayment mortgage rather than rely on rising house prices? If not, this could also constitute an improper sale.
Use our letter template if you want to complain that you sold an interest-only mortgage badly.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you told that it would be more convenient for you to put all your loans, credit cards and loans on 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?.
If not, you could swap short-term debt for long-term debt by adding it to your mortgage.
Did the counselor explain to you that although you would initially have lowered your monthly outgoings, you could extend the duration of your debt and greatly increase the amount of interest you would pay?
If not, this could be considered an improper sale.
Claim your provider with our template letter if you have been encouraged to repay your mortgage to clear your debts.
Household budget analysis
Have you been asked to complete a family budget analysis? Were you asked how much was your monthly income and what were your monthly outgoings?
Did they calculate with you how much money you had left each month after paying all your bills, that is, your disposable income?
If not done, you may have unknowingly over-committed to a mortgage that you couldn’t afford.
Self Certification mortgages
Have you been asked to provide proof of your income, such as pay slips or certified accounts that could prove your income?
If not, have you been encouraged to take out what is known as a “Self Cert” or “Fast Track” mortgage, where you don’t need to prove your income?
These mortgage products paid much higher fees and were very popular with some brokers for this very reason.
If this applied to you, your mortgage may have been badly sold.
Mortgages running past retirement
Does your mortgage have to expire beyond your retirement age? Was it pointed out to you?
Has your broker or lender discussed how you would meet your mortgage payments once you retire?
A good example of this would be if someone took out a mortgage for 20 years at the age of 50.
The average retirement age is 65, which means there are 5 years left to pay the mortgage.
If at the time of the agreement, the consultant did not consider whether the client could afford to make payments after age 65, then the client may have sold the mortgage poorly.
Use our letter template to complain if you think you’ve been badly sold.
High broker fees
Have you paid unreasonably high commissions to the broker or advisor who arranged your mortgage?
Have you been informed what the fees would be?
Were they added to your mortgage without your knowing so that you now pay interest on them every month?
If any of the above apply to you, you may have a mis-selling case and you may want to use our letter template to complain to your supplier.
Which? Money Compare
Taking out a mortgage is a complicated process. Visit which one? Money Compare to compare hundreds of mortgages and find the ones with the best rates and the best customer service.
Which Ltd is a designated representative of which introducer? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which? Mortgage consultants, which ones? Insurance consultants and which ones? Money Compare are Which Trade Names? Financial Services Limited.