- 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 How do I complain about mis selling?
- 10 Can I claim for a mis-sold mortgage?
- 11 What happens if you have been mis-sold a mortgage?
- 12 Is mis selling illegal?
If you were advised to make an investment intended to pay off your mortgage when it expired, did you later discover that you would not be paying 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 constitute a mis-sold policy. Read our guide to mis-selling funds if you think this might apply to you.
Interest Only Mortgages
If you were to pay only the interest on your mortgage on a monthly basis, then the counselor should let you know how you would repay your mortgage when it expires. Read 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 your broker or lender has not discussed this with you or given you examples of the cost of principal and repayment mortgage compared to the lower costs of an 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 repayable mortgage instead of relying on rising house prices? If not, then this could also constitute a mis-selling.
Use our template letter if you want to complain about mis-selling of an interest only mortgage.
Remortgaging to clear your debts
If you were aiming to consolidate your debts, did you advise that it would be cheaper for you to put all your loans, credit cards and finances 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 exchange short-term debt for long-term debt by adding it to your mortgage.
Did the counselor explain to you that even if you initially reduced your monthly expenses, you might extend the duration of your debt and greatly increase the interest you would pay?
If not, this could constitute a mis-selling.
Complain to your provider with our template letter if you would be prompted to repay in order to clear your debts.
Household budget analysis
Were you asked to perform a home budget analysis? Have you ever wondered how much your monthly income was, and what your monthly expenses were?
Did they figure out with you how much money you had left over each month after paying all of your bills i.e. of your disposable income?
If this wasn’t done, you may have unknowingly committed too much to a mortgage you couldn’t afford.
Self Certification mortgages
Were you asked to prove proof of your income, for example, payroll tables or audited accounts that could prove your income?
If not, did you dare to take out what is called a “Self-assured” or “Quick” mortgage, where you didn’t need to prove your income?
These mortgage products paid much higher commissions and were very popular among some brokers precisely because of this.
If this was true for you, your mortgage may have been mis-sold.
Mortgages running past retirement
Does your mortgage have to go beyond your retirement? Has this been brought to your attention?
Has your broker or lender discussed how you would make your mortgage payments after you retire?
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 the mortgage.
If at the time of agreement, the counselor did not consider whether the client could afford to pay after the age of 65, then the client may have mis-sold his mortgage.
Use our template letter to complain if you think you have been mis-sold.
High broker fees
Did you pay unfairly high fees to the broker or advisor who arranged your mortgage?
Were you aware of what the fees would be?
Have they been added to your mortgage without you knowing, so you now pay interest on them every month?
If any of the above apply to you, then you may have a mis-sale and may want to use our template letter to complain to your supplier.
Which? Money Compare
Paying off a mortgage is a complicated process. Visit Who? Money Compare to compare hundreds of mortgages and find the ones with the best rates and best customer service.
Who Ltd is Introducer Appointed Representative of Who? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Who? Mortgage Advisors, Who? Insurance Advisors and Who? Money Comparison are trade names of Who? Financial Services Limited.
How do I complain about mis selling?
If you mis-sold a financial product
- Step 1 – Gather all the information you need. You don’t need to find concrete proof, but you do need to explain your problem. …
- Step 2 – Complain to your provider or advisor. …
- Step 3 – Ask for a mediator service to investigate.
How long do companies have to respond to a complaint?
Acknowledging your complaint Unless they resolve your complaint within 3 business days, all companies must 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 firm must appoint an individual at the firm, or in the same group as the firm, to have responsibility for overseeing the firm’s performance with DISP 1. The nominated individual must perform an FCA governing function at the firm or in the same group as the company.
Can I claim for a mis-sold mortgage?
Make a mis-sold mortgage claim In a mis-sold mortgage claim, you will need to prove: That you sold a mortgage from the broker / lender / advisor against whom you are claiming. That they have violated one or more of their duties under FCA rules.
Are interest-only mortgage claims successful?
There may still be a lot of successful mortgage claims with only interest, but most commenters agree that a claim for this product is likely to have a lower success rate than for PPI, where the independent Financial Ombudsman Service (FOS) has confirmed. a significant majority of complaints received.
Are trusted mortgage claims legit?
Reviews on a reliable mortgage. Until the writing reliable mortgage claims had a 4 star rating out of a possible 5 star of more than 800 reviews. This is very good.
Is it common for mortgages to be sold?
They learn that their mortgage has been sold. This may sound alarming. But it’s actually pretty common. And it will not affect the loan rate, terms or amount owed.
What happens if you have been mis-sold a mortgage?
Some cases of unsold mortgages are quite clear as to why the claimant is entitled to compensation. This may be because: The claimant has already retired after the mortgage date. … Your lender had you with a fixed interest mortgage, but you were advised to change without being informed of any fees due to abandoning the plan.
What constitutes a mis-sold mortgage?
You may have mis-sold a mortgage product if at the time you took out your mortgage, your lender, financial advisor, or broker failed: Properly assess your individual circumstances; Failed to give you information about the options available to you; or.
Could I have been mis-sold an interest-only mortgage?
MIS-SOLD MORTGAGE CLAIMS This means that you could pay off month after month for years, and never really own your house, and still have the full mortgage amount at the end of the period. But if you were pushed into just an interesting mortgage and were unfit for it, you could make a claim.
Is mis selling illegal?
In its simplest form, mis-selling means rashly misrepresenting a product or service in order to successfully complete a sale. … Financial misappropriation is illegal in most countries. A basic example of mis-selling would be a person, with no dependents manipulated to buy life insurance.
What is mis-selling in insurance?
Consequence of Mis-selling Insurance Policies in India Imagine the consequences of mis-selling wrong products where the seller finds it difficult to sell insurance without understanding your actual needs and due to their inadequate knowledge of the product.
How do you spell mis-sold?
Definition of ‘mis-sold’ It mis-sold payment protection insurance. Now they will feel misplaced about plan law. There is no suggestion that some were specifically mis-sold. I feel we have been mis-sold and want compensation.