If you were advised to make an investment designed to pay off your mortgage when it ended, did you find out later that you would not be paid enough? To see also : 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 incorrect sales policy. Read our guide to under-sold endowments if you think this might apply to you.
Interest Only Mortgages
If you were only paying the interest on your mortgage each month, then the counselor should have told you 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 give you examples of the cost of a principal and repayment mortgage compared to the lower costs of an interest-only mortgage, then this would be an example of a wrongful sale.
Also, was it explained to you that you may need to change your mortgage to a repayment mortgage instead of relying on rising house prices? Failure to do so could also constitute an improper sale.
Use our letter template if you want to complain about the improper sale of an interest-only mortgage.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you informed that it would be cheaper for you to put all your loans, credit cards and finances on your mortgage? On the same subject : 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 could be trading short-term debt for long-term debt by adding it to your mortgage.
Did the advisor explain that although you would be initially reducing your monthly expenses, you may be lengthening the term of your debt and greatly increasing the amount of interest you would pay?
Otherwise, this could constitute a deceptive sale.
Claim your provider with our sample letter if you were encouraged to rehire to settle your debts.
Household budget analysis
Were you asked to complete a family budget analysis? Did they ask you how much your monthly income was and what your monthly expenses were?
Did they work out with you how much money you had left over each month after paying all your bills, that is, your disposable income?
If you didn’t, you may have unknowingly overcommitted to a mortgage that you couldn’t pay.
Self Certification mortgages
Were you asked to provide evidence of your income, for example pay stubs or audited accounts that could prove your income?
If not, were you encouraged to take out what is known as a “Self Cert” or “Fast Track” mortgage, where you did not need to prove your income?
These mortgage products paid much higher commissions and were very popular with some brokers for that very reason.
If this applies to you, your mortgage may have been poorly sold.
Mortgages running past retirement
Should your mortgage exceed your retirement age? Was this pointed out to you?
Did your broker or lender discuss how you would meet your mortgage payments once you retire?
A good example of this would be if someone takes out a 20-year mortgage at the age of 50.
The median retirement age is 65, which means there are 5 years left to pay the mortgage.
If at the time of the agreement, the advisor did not consider whether the client could pay the payments after age 65, it is possible that the client has sold their mortgage badly.
Use our letter template to complain if you think you have been sold poorly.
High broker fees
Did you pay excessively high fees to the broker or advisor who arranged your mortgage?
Did they inform you what the fees would be?
Were they added to your mortgage without your knowledge, so you are now paying interest every month?
If any of the above applies to you, you may have a wrongful sale case and you may want to use our letter template to file a complaint with your supplier.
Which? Money Compare
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