Endowment policies
Contents
If you were advised to take an investment that was designed to pay off your mortgage after it was completed, did you later find that you would not be paid adequately? 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 be the wrong policy to sell. Read our guide to endowments that are one sale if you think this applies to you.
Interest Only Mortgages
If you only pay interest on your mortgage each month, then an advisor should make you aware of how you will pay your mortgage when it is completed. 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 does not discuss this with you or give you an example of the cost of a Capital Mortgage and Payment compared to the lower cost of a Mortgage Only, then this would be an example of one sale.
Next, why was it explained to you that you thought you should replace your mortgage with a Payment mortgage instead of relying on rising land prices? If not, then this can also be a sale.
Use our template letter if you want to complain about one mortgage sale that is of interest only.
Remortgaging to clear your debts
If you are looking to consolidate your debt, why are you advised that it would be cheaper for you to put all your loans, credit cards and finances into 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?.
If not, you can exchange short -term debt for long -term debt by adding it to your mortgage.
Did the advisor explain to you that even though you would lower your monthly withdrawal amount initially, you thought you could extend the term of your debt and increase the amount of interest you would pay?
If not, this could be a sale.
Complain to your provider using our template letter if you are recommended for remortgage to clear your debt.
Top tips
Household budget analysis
Have you been asked to complete a household budget analysis? Did you ask how much is your monthly income, and what is your monthly output?
Do they work with you on how much money you save each month after paying all your bills is your disposable income?
If this isn’t right, you thought you didn’t realize too much self -commitment to a mortgage that you couldn’t afford.
Self Certification mortgages
Were you asked to provide proof of your income, for example, a salary slip or an audited account that could prove your income?
If not, why are you encouraged to take out what is known as a ‘Self Cert’ or ‘Fast Track’ mortgage, where you don’t have to prove your income?
These mortgage products pay much higher commissions and are very popular among some brokers for that reason.
If this applies to you, the mortgage you thought could be sold wrong.
Mortgages running past retirement
Is your mortgage due to pass your retirement age? Why was this assigned to you?
Did your broker or lender discuss how you will pay your mortgage payments when you retire?
A good example of this is if someone takes a mortgage for 20 years at the age of 50 years.
The average retirement age is under 65, which means there will be 5 more years to pay off the mortgage.
If at the time of the agreement, the advisor did not consider whether the customer was able to make payments after the age of 65, then the customer thought he could have sold his mortgage.
Use our template letter to complain if you’re selling one.
High broker fees
Did you pay an insignificant fee to the broker or advisor who arranged your mortgage?
Do you realize what it costs?
Did they add to your mortgage without you knowing that you are currently paying interest for them every month?
If any of the above apply to you then you may have a case of one sale and you thought you would like to use our template thread to complain to your provider.
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