- 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 What happens if you have been mis-sold a mortgage?
- 10 Can I claim for a mis-sold mortgage?
- 11 Is mis selling illegal?
- 12 How do I complain about mis selling?
If you were advised to make an investment that was intended to pay off your mortgage after it expired, did you later discover that you were not being paid enough? 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 so, it could be a mis-sold policy. If you think this might apply to you, read our guide to mis-sold endowments.
Interest Only Mortgages
If you only pay mortgage interest each month, the advisor should have known you how you would repay this mortgage upon termination. Read also : I think I’ve been mis-sold my mortgage, what can I do?.
If your broker or lender did not discuss this with you and did not provide examples of the cost of a capital and repayment mortgage compared to the lower cost of an interest-only mortgage, this would be an example of a wrong sale.
Besides, have you been explained that you may need to exchange your mortgage for a repayment mortgage instead of relying on house price increases? If not, it could also mean a formula sale.
Use our template letter if you want to complain about interest-only mortgage sales.
Remortgaging to clear your debts
If you wanted to consolidate your debts, were you advised that it would be cheaper for you to put all your loans, credit cards and funds on a 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 can swap short-term debt for long-term debt by adding it to your mortgage.
Did the adviser explain to you that even if you initially reduce your monthly expenses, you may be extending your debt and significantly increasing the amount of interest you pay?
If not, it can be considered misuse.
If you would like to be advised to use it again to clear your debts, please contact our service provider.
Household budget analysis
Were you asked to complete a household budget analysis? Were you asked how much your monthly income was and how much your monthly expenditure was?
Did they work with you on how much money you had left each month after paying all the bills, or disposable income?
If this was not done, you could unknowingly over-mortgage, which you could not afford.
Self Certification mortgages
Were you asked to provide proof of your income, such as payslips or audited accounts, that could prove your income?
If not, were you encouraged to take a so-called mortgage called the Self Cert or Fast Track, where you did not have to prove your income?
These mortgage products paid much higher commissions and were therefore very popular among some brokers.
If this applies to you, your mortgage may have been sold incorrectly.
Mortgages running past retirement
Should your mortgage exceed your retirement age? Was this brought to your attention?
Did your broker or lender discuss how you could make mortgage payments after retirement?
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 years, which means that there are 5 years left to pay the mortgage.
If the adviser did not take into account at the time of the agreement whether the client could afford to make payments after the age of 65, the mortgage could have been sold to the client incorrectly.
Use our template to complain if you think you have been wrongly sold.
High broker fees
Did you pay unreasonably high fees to the mortgage broker or adviser?
Were you informed of the fees?
Were they added to your mortgage without your knowledge that you now pay interest on them every month?
If any of the above apply to you, you may have sold incorrectly and may use our template letter to file a complaint with your service provider.
Which? Money Compare
Taking out a mortgage is a complicated process. Which one to visit? Money Compare to compare hundreds of mortgages and find the ones with the best rates and the best customer service.
Which OÜ is the designated representative of the introducer? Financial Services Ltd, authorized and regulated by the Financial Conduct Authority.
Which one? What are mortgage advisors? Insurance Advisors and Which? Money comparison is which brand names? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
In some cases of mis-sold mortgages, it is quite clear why the debts owed to the claimant can be paid. The reason may be that: the claimant retired after the end date of the mortgage. … your lender had a fixed interest rate mortgage, but they were advised to switch without being paid exit fees.
Could I have been mis-sold an interest-only mortgage?
WHAT-SOLD MORTGAGE CLAIMS This means that you could pay monthly for years and never be able to own your house and at the end of the term the full amount of the mortgage would not be paid. But if you are only being pushed for an interest-bearing mortgage and you are unfit for it, you may want to file a claim.
What constitutes a mis-sold mortgage?
Mortgage products may be sold to you incorrectly if, at the time you took out the mortgage, your lender, financial adviser or broker was unable to: correctly assess your individual circumstances; Did not receive information about the options available to you; or.
Can I claim for a mis-sold mortgage?
Filing an incorrectly sold mortgage claim In the case of an incorrectly sold mortgage claim, you must prove that the broker / lender / advisor sold you the mortgage against which you are claiming. That they breached one or more of their obligations under the FCA rules.
Are trusted mortgage claims legit?
Reliable mortgage claim reviews. At the time of writing the credible mortgage claims, more than 800 reviews were 4 stars out of five possible stars. It’s very good.
Is it common for mortgages to be sold?
They find out that their mortgage was sold. This may seem alarming. But it’s actually quite common. And it does not affect the loan rate, terms and amount owed.
Are interest-only mortgage claims successful?
However, the claims for successful interest-only mortgages may be high, but most commentators agree that claims for this product are likely to be lower than for PPIs, where the Independent Financial Ombudsman Service (FOS) has accepted the vast majority of complaints received.
Is mis selling illegal?
In its simplest form, a mistake is an ill-considered misrepresentation of a product or service in order to successfully complete a sale. … In most countries, financial misconduct is illegal. The main example of a mistake would be a person who has no dependents being manipulated when buying life insurance.
What is mis-selling in insurance?
Consequences of misused insurance policies in India Imagine the consequences of selling the wrong products if the seller sells the insurance policy hard, without understanding your real needs and because they do not have enough knowledge about the product.
How do you spell mis-sold?
The term ‘mis-sold’ This is mis-sold payment insurance. Now they feel sold in the Planning Act. There is no suggestion that anything in particular has been sold incorrectly. I feel we have been sold wrong and we want compensation.
How do I complain about mis selling?
If you have sold a financial product incorrectly
- Step 1 – Gather all the necessary information. You don’t have to find specific evidence, but you do have to explain your problem. …
- Step 2 – Contact your service provider or advisor. …
- Step 3 – Ask the Ombudsman’s Office to investigate.
How long do companies have to respond to a complaint?
Confirmation of your complaint If not all companies resolve your complaint within 3 working days, all companies must respond in writing to inform you of the receipt of the complaint.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
The company must designate an individual within the company or in the same group as the company who is responsible for the company’s compliance with DISP 1. This person must hold a senior position with the FCA in the company or agency. group as a company.