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

Endowment policies

If you were advised to invest an investment designed to pay off your mortgage when it ended, did you later discover 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-selling policy. Read our guide to mis-selling endowments if you think this may apply to you.

Interest Only Mortgages

If you were only paying the interest on your mortgage each month, then the adviser should have informed you how you would repay your mortgage when it was finished. On the same subject : I think I’ve been mis-sold my mortgage, what can I do?.

If your broker or lender has not discussed this with you or given you examples of the cost of a Capital and Repayment mortgage compared to the lower costs of an Interest Only mortgage, then this is an example of mis-selling.

Also, have you been told that you may need to change your mortgage to a Repayment mortgage instead of relying on rising house prices? Otherwise, this may also involve mis-selling.

Use our letter template if you want to complain about an interest-only mortgage mis-selling.

Remortgaging to clear your debts

If you were trying to consolidate your debts, were you advised that it would be cheaper for you to put all your loans, credit cards and finances on your mortgage? See the article : I think I’ve been mis-sold my mortgage, what can I do?.

If not, you could be exchanging short-term debt for long-term debt by adding them to your mortgage.

Has the adviser explained to you that while you may be reducing your monthly outlays initially, you may be extending the term of your debt and significantly increasing the amount of interest you would be paying?

If not, this could be considered a mis-selling.

Complain to your provider with our template letter if you have been encouraged to remortgage to clear your debts.

Top tips

Household budget analysis

Have you been asked to do a household budget analysis? Were you asked how much your monthly income was, and what your monthly outlays were?

Did they work out for you how much money you had left each month after paying all your bills ie your disposable income?

If this is not done, you may have unknowingly made too much of a commitment to your mortgage that you were unable to pay.

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, have you been encouraged to take out a ‘Self Cert’ or ‘Fast Track’ mortgage, where you do not need to prove your income?

These mortgage products paid much higher commissions and were very popular among some brokers for that reason.

If this applies to you, your mortgage may have been mis-sold.

Mortgages running past retirement

Does your mortgage run out of retirement age? Have you been told this?

Has your broker or lender discussed how you would meet your mortgage payments when you retired?

A good example of this is if a person 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 off the mortgage.

If, at the time of the agreement, the adviser did not take into account whether the customer was able to make the payments after the age of 65, the customer may have mis-sold his mortgage.

Use our template letter to make a complaint if you think you have been mis-sold.

High broker fees

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

Have you been told what the fees are?

Were they unknowingly added to your mortgage so that you are now paying interest every month?

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

Which? Money Compare

Taking out a mortgage is a complicated process. Visit Which? Money Compare hundreds of mortgages and find those that have the best rates and the best customer service.

Which Ltd is an Appointed Representative Introduction to Which? Financial Services Ltd, authorized and regulated by the Financial Conduct Authority.

Which one of them? Mortgage Advisors, Which? Insurance Advisors and Who? Compare Money and trade names of Which? Financial Services Limited.

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 don’t have to get concrete proof, but you do have to explain your problem. …
• Step 2 – Make a complaint 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 firm must appoint a person at the firm, or in the same group as the firm, to be responsible for overseeing the firm’s compliance with DISP 1. The person appointed must be performing the FCA’s control function at the firm or in the same business. group as the firm.

How long do companies have to respond to a complaint?

Acknowledging your complaint If they do not resolve your complaint within 3 business days, all businesses are required to respond in writing to let you know that they have received your complaint.

Can I claim for a mis-sold mortgage?

Making a mis-selling mortgage claim In a mis-selling mortgage claim, you will need to prove: That the broker / lender / advisor you are claiming a mortgage with has sold. They have breached one or more of their obligations under FCA rules.

Is it common for mortgages to be sold?

They learn that their mortgage has been sold. This can be scary. But it’s actually pretty common. And it will not affect the loan rate, the terms or the amount due.

Are trusted mortgage claims legit?

Reliable mortgage claim reviews. For writing reliable mortgage claims, we reviewed 4 out of 5 potential stars out of more than 800 reviews. This is very good.

Are interest-only mortgage claims successful?

A large number of single interest mortgage claims may prove to be successful, but most commentators agree that demand for this product is likely to have a lower success rate than PPI, where upheld by the independent Financial Ombudsman Service (FOS) received a significant majority of complaints.

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

A few cases of mis-selling mortgages are quite clear as to why compensation may be due to the claimant. This could be because: The claimant has already retired after the mortgage expiry date. … Your lender had a fixed rate mortgage, but you were advised to transfer free of charge for leaving the scheme.

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

MORTGAGE CLAIM SOLD This means you could be paying month after month for years, and not really own your home, with the full amount of mortgage still outstanding at the end of the term. But if you pushed into an Interest Only mortgage and you didn’t fit into it, you might be able to make a claim.

What constitutes a mis-sold mortgage?

You may have sold a mortgage product if your lender, financial adviser or broker failed at the time you took out your mortgage: Properly assess your individual circumstances; Failed to provide you with information about the options available to you; or.

Is mis selling illegal?

In its simplest form, misspelling means improperly misrepresenting a product or service in order to successfully complete a sale. … Financial abuse is illegal in most countries. A basic example of militarization is the manipulation of any dependents to purchase life insurance.

What is mis-selling in insurance?

Impact of Mis-selling Insurance Policies in India Imagine the consequences of mis-selling wrong products when the seller sells an insurance policy hard without understanding your actual needs and because of his inadequate knowledge about the product.

How do you spell mis-sold?

Definition of ‘mis-selling’ Mis-selling payment protection insurance. Now they will rely on mis-selling on planning law. There is no suggestion that any specific mis-selling has taken place. I feel we have been mis-sold and I need compensation.