- 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 Can I claim for a mis-sold mortgage?
- 10 Is mis selling illegal?
- 11 What happens if you have been mis-sold a mortgage?
- 12 How do I complain about mis selling?
If you were advised to take an investment designed to repay your mortgage after it finished, did you find out later that you would not be paid 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?.
If so, this could be a mis-sold policy. Read our guide on unsold endowments if you think this might apply to you.
Interest Only Mortgages
If you were only paying interest on your mortgage every month, then the adviser should have made you aware of how you would repay your mortgage on completion. 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?.
If your broker or lender had not discussed this with you or given you examples of the cost of a Capital and Repayment mortgage compared to the lower costs of a Interest Only mortgage, then this would be an example of mis-selling.
Furthermore, have you been told that you may have to change your mortgage to a Repayment mortgage rather than rely on rising house prices? If not, then this could also be a mis-selling.
Only use our template letter if you want to complain about being misappropriated interest mortgage.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you advised that it would be cheaper to put all your loans, credit cards and finance on your mortgage? See the article : I think I’ve been mis-sold my mortgage, what can I do?.
If not, you could be swapping short-term debt for long-term debt by adding it to your mortgage.
Did the adviser explain to you that, although initially you would reduce your monthly expenses, you may well extend the term of your debt and significantly increase the amount of interest you would pay?
If not, this could amount to mis-selling.
Complain to your provider with our template letter if you have been encouraged to remortgage to clear your debts.
Household budget analysis
Have you been asked to complete a household budget analysis? Were you asked how much your monthly income was, and what your monthly expenses were?
Did they work with you how much money you had left each month after paying all your bills ie your disposable income?
If not, you may have unwittingly over-committed yourself to a mortgage that you could not afford.
Self Certification mortgages
Have you been asked to provide evidence of your income, for example, payslips or audited accounts that could prove your income?
If not, were you encouraged to take 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 just that reason.
If this applied to you, your mortgage may have been mis-sold.
Mortgages running past retirement
Is your mortgage supposed to run beyond your retirement age? Was this pointed out to you?
Did your broker or lender discuss how you would pay off your mortgage payments after you retired?
A good example of this would be if someone takes out a mortgage for 20 years at the age of 50.
The average retirement age is 65, which means there will be 5 years left to pay on the mortgage.
If, at the time of agreement, the adviser did not consider whether the customer could afford to make the payments after the age of 65, then the customer may have mis-sold their mortgage.
Use our template letter to complain if you think you have been mis-sold.
High broker fees
Did you pay unreasonably high fees to the broker or adviser who arranged your mortgage?
Did you know what the fees would be?
Were they added to your mortgage without your knowledge so you are now paying interest on them every month?
If any of the above applies to you then you may have a case of mis-selling and you may wish to use our template letter to complain to your provider.
Which? Money Compare
Taking out a mortgage is a complicated process. Visit Which? Money Compare to compare hundreds of mortgages and find those with the best rates and best customer service.
Which Ltd is the Appointed Representative of Presenter for Which? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which one? Mortgage Advisors, Which? Insurance Advisers and Which? Compare Money are trading names of Which? Financial Services Limited.
Can I claim for a mis-sold mortgage?
Making an unsold mortgage claim In a mis-sold mortgage claim, you will need to prove that: You have sold a mortgage from the broker / lender / adviser you are claiming against. They have breached one or more of their obligations under FCA rules.
Are interest-only mortgage claims successful?
A large number of interest-only mortgage claims may still be successful, but most commentators agree that applying for this product is likely to have a lower success rate than for PPI, where the Service An independent Financial Ombudsman (FOS) has upheld a significant majority of the complaints.
Are trusted mortgage claims legit?
Reliable mortgage claim reviews. At the time of writing, reliable mortgage claims were getting a 4-star out of a possible 5-star review from over 800 reviews. This is very good.
Is it common for mortgages to be sold?
They learn that their mortgage has been sold. This can sound scary. But it’s actually quite common. And it will not affect the loan rate, terms or amount owed.
Is mis selling illegal?
In its simplest form, spelling involves the reckless misrepresentation of a product or service in order to successfully complete a sale. … Financial spelling is illegal in most countries. A basic example of spelling would be someone with no dependents being treated to buy life insurance.
What is mis-selling in insurance?
Result of Mis-selling Insurance Policies in India Imagine the consequences of mis-selling of incorrect products where the seller is selling a insurance policy hard without understanding your real needs and because of their inadequate product knowledge.
How do you spell mis-sold?
Definition of ‘mis-selling’ It mis-sold payment protection insurance. Now they will feel they are being mis-sold on planning law. There is no suggestion that any have been specifically mis-sold. I feel we have been mis-sold and want compensation.
What happens if you have been mis-sold a mortgage?
A few cases of mortgages have been sold are quite clear as to why the claimant might be compensated. This may be because: The claimant has already retired after the mortgage expiry date. … If your lender had a fixed rate mortgage, but was advised to change without being notified of any fees for leaving the scheme.
Could I have been mis-sold an interest-only mortgage?
MONTH-SOLD MORTGAGE CLAIM This means you could be paying month to month for years, and never really own your house, and still have the full mortgage amount due at the end of the term. But if you were pushed into and unsuitable for a Interest Only mortgage, you may be able to apply.
What constitutes a mis-sold mortgage?
You may have mis-sold a mortgage product if your lender, financial adviser or broker failed: After taking out your mortgage: Accurately assess your individual circumstances; Failed to provide you with information about the options available to you; or.
How do I complain about mis selling?
If you have been mis-sold a financial product
- Step 1 – Gather all the information you need. You do not have to find a concrete test, but you do need to explain your problem. …
- Step 2 – Complaining to your provider or adviser. …
- Step 3 – Ask an ombudsman service to investigate.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
A company must appoint an individual in the company, or in the same group as the company, to be responsible for overseeing the company’s compliance with DISP 1. The person appointed must be carrying out the FCA’s governance function in the company or at the same thing. group like the company.
How long do companies have to respond to a complaint?
Acknowledgment of your complaint Unless they resolve your complaint within 3 business days, all companies are required to respond in writing to let you know that they have received your complaint.