Endowment policies
Contents
If you were advised to withdraw an investment designed to pay off your mortgage when it expired, did you later find out that you would not be paid properly? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
If so, this could lead to a misguided goal. Read our guide to freebies if you think this might benefit you.
Interest Only Mortgages
If you are only paying interest on your mortgage on a monthly basis, then the counselor should let you know how to repay the 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 does not discuss this with you or give you examples of mortgage rates and payments compared to the low interest rates only, then this would be an example of wasteful money.
After all, have you been told that maybe you should change your mortgage to a mortgage loan instead of relying on inflation? If not, then this too could be a misleading sale.
Use our product letter if you want to complain about the wrong way to sell mortgages only.
Remortgaging to clear your debts
If you are looking to improve your debt, have you been advised that it will be easier for you to put all your loans, credit cards and money on your mortgage? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
If not, you can exchange short-term loans for long-term loans by adding to your mortgage.
Does the counselor explain to you that even though you will reduce your monthly expenses in the first place, you may have extended your loan period and increased your interest payments?
If not, this could be classified as a nasty sale.
Complain to your service provider with our product letter if you are encouraged to re-invest to clear your debts.
Top tips
Household budget analysis
Have you been asked to complete a local budget review? You are asked how much your monthly income is, and what is your monthly output?
Did they work with you on the amount of money you left each month after paying all your bills i.e. your disposable income?
If this is not done, you may have intentionally given yourself over to mortgages that you cannot afford.
Self Certification mortgages
Are you required to provide proof of receipt, for example, payment documents or audited accounts that can verify your payment?
If not, are you encouraged to take out what is known as a ‘Self Cert’ or ‘Fast Track’ loan, where you do not need to verify your payment?
These mortgage products are paid by higher commissioners and are very popular among other dealers for this reason.
If this applies to you, your mortgage may be sold incorrectly.
Mortgages running past retirement
Will your mortgage exceed your retirement age? Have you been shown this?
Did your broker or lender discuss how to meet your mortgage payment once you retire?
A good example of this is if someone receives a 20-year mortgage at the age of 50.
The average retirement age is 65, which means there will be another 5 years to be paid on the mortgage.
If at the time of the agreement, the consultant does not consider whether the customer can pay after 65 years, then the mortgage may be sold.
Use our product letter to complain if you think you have been sold in an inappropriate way.
High broker fees
Have you paid large sums of money illegally to the broker or consultant who designed your mortgage?
Have you been informed of the costs?
Were they put in mortgage without your knowledge so now you are paying them every month?
If any of the above apply to you then you may not be able to get a sale lawsuit and you can use our product letter to complain to your supplier.
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