I think I’ve been mis-sold my mortgage, what can I do?

Endowment policies

If you were advised to take out an investment that would pay off your mortgage at the end, did you later discover that you would not be paid enough? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.

If so, this could constitute an improper sales policy. Read our guide to poorly selling equipment if you think this might apply to you.

Interest Only Mortgages

If you only paid interest on the mortgage each month, the consultant would have to tell you how you would repay the mortgage when it was finished. 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 did not discuss this with you or gave you examples of the cost of a repayment and principal mortgage versus the lower costs of an interest-only mortgage, then this would be an example of a mis-selling.

Also, has it been explained to you that you may need to convert your mortgage into a repayment mortgage rather than rely on rising house prices? If not, this could also constitute an improper sale.

Use our letter template if you want to complain that you sold an interest-only mortgage badly.

Remortgaging to clear your debts

If you were looking to consolidate your debts, were you told that it would be more convenient for you to put all your loans, credit cards and loans on your mortgage? 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 not, you could swap short-term debt for long-term debt by adding it to your mortgage.

Did the counselor explain to you that although you would initially have lowered your monthly outgoings, you could extend the duration of your debt and greatly increase the amount of interest you would pay?

If not, this could be considered an improper sale.

Complain to your provider with our model letter if you have been encouraged to repay your mortgage to clear your debts.

Top tips

Household budget analysis

Have you been asked to complete a family budget analysis? Were you asked how much was your monthly income and what were your monthly outgoings?

Did they calculate with you how much money you had left each month after paying all your bills, that is, your disposable income?

If not done, you may have unknowingly over-committed to a mortgage that you couldn’t afford.

Self Certification mortgages

Have you been asked to provide proof of your income, such as pay slips or certified accounts that could prove your income?

If not, have you been encouraged to take out what is known as a “Self Cert” or “Fast Track” mortgage, where you don’t need to prove your income?

These mortgage products paid much higher fees and were very popular with some brokers for this very reason.

If this applied to you, your mortgage may have been badly sold.

Mortgages running past retirement

Does your mortgage have to expire beyond your retirement age? Was it pointed out to you?

Has your broker or lender discussed how you would pay your mortgage payments once you retire?

A good example of this would be if someone took out a mortgage for 20 years at the age of 50.

The average retirement age is 65, which means there are 5 years left to pay the mortgage.

If at the time of the agreement, the consultant did not consider whether the client could afford to make payments after age 65, then the client may have sold the mortgage poorly.

Use our letter template to complain if you think you’ve been badly sold.

High broker fees

Have you paid unreasonably high commissions to the broker or advisor who arranged your mortgage?

Have you been informed what the fees would be?

Were they added to your mortgage without your knowing so that you now pay interest on them every month?

If any of the above apply to you, you may have a mis-selling case and you may want to use our letter template to complain to your supplier.

Which? Money Compare

Taking out a mortgage is a complicated process. Visit which one? Money Compare to compare hundreds of mortgages and find the ones with the best rates and the best customer service.

Which Ltd is an introducer designated representative of which one? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.

Which? Mortgage consultants, which ones? Insurance consultants and which ones? Money Compare are Which Trade Names? Financial Services Limited.

How do I complain about mis selling?

If you have badly sold a financial product

• Step 1 – Gather all the information you need. You don’t have to find hard evidence, but you have to explain your problem. …
• Step 2: File a complaint with your supplier or consultant. …
• Step 3: Ask an ombudsman service to investigate.

How long do companies have to respond to a complaint?

Acknowledging Your Complaint Unless you resolve your complaint within 3 business days, all companies are required to respond in writing to let you know they have received your complaint.

Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?

A company must appoint a person at the company, or in the same group as the company, to be responsible for overseeing the company’s compliance with DISP 1. The nominated person must perform an FCA governance function at the company or in the same group as the company.

Can I claim for a mis-sold mortgage?

Submitting a Wrong Sale Mortgage Claim In an incorrect sale mortgage claim, you must prove: That a mortgage has been sold by the broker / lender / consultant you are claiming against. Who have violated one or more of their obligations under the FCA rules.

Is it common for mortgages to be sold?

They learn that their mortgage has been sold. This may sound alarming. But it’s actually quite common. And it won’t affect the loan rate, terms or amount owed.

Are interest-only mortgage claims successful?

There may still be a large number of interest-only mortgage applications, but most commentators agree that application for this product is likely to have a lower success rate than PPI, where the Financial Ombudsman Service (FOS ) confirmed a significant majority of the complaints received.

Are trusted mortgage claims legit?

Reliable Mortgage Loan Reviews. At the time of writing the trusted mortgage applications, I received a possible 4 out of 5 star review from over 800 reviews. This is very good.

Is mis selling illegal?

In its simplest form, misselling means recklessly misrepresenting a product or service in order to successfully complete a sale. … Financial misselling is illegal in most countries. A basic example of misselling could be a person with no dependents being manipulated into purchasing life insurance.

How do you spell mis-sold?

Definition of “wrong sale” Payment protection insurance sold incorrectly. Now they will feel badly sold on the planning law. There is no suggestion that anyone in particular was being sold improperly. I feel we have been badly sold and we want compensation.

What is mis-selling in insurance?

Consequence of wrong selling of insurance policies in India Imagine the consequences of wrong selling of wrong products where the seller sells an insurance policy without understanding your real needs and because of his inadequate knowledge of the product.

What happens if you have been mis-sold a mortgage?

Some cases of badly sold mortgages are quite clear as to why the claimant may be owed compensation. This may be due to: The applicant has already retired after the loan maturity date. … Your credit institution had taken out a fixed rate mortgage for you, but was advised to change without being notified of any commission for leaving the scheme.

What constitutes a mis-sold mortgage?

A mortgage product may have been sold improperly if the lender, financial adviser or broker did not: properly assess individual circumstances at the time the loan was taken out; We have not been able to provide you with information on the options available to you; or.

Could I have been mis-sold an interest-only mortgage?

MORTGAGE CLAIMS SOLD FOR ERROR This means you could pay month-to-month for years, and never actually own your home, and still have the full mortgage amount outstanding at the end of the term. But if you’ve been pushed into an interest-only mortgage and aren’t eligible, you may be able to file a claim.