Endowment policies
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If you were advised to make an investment to repay the mortgage when it is completed, did you later find that they would not pay you 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 the answer is yes, this may represent a wrong sales policy. Read our guide to wrongly sold grants if you think this might apply to you.
Interest Only Mortgages
If you were only paying interest on your mortgage each month, your advisor should remind you how you will repay the mortgage when it is completed. 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 mortgage on equity and repayment compared to the lower cost of a mortgage with interest only, this would be a case of a misappropriation.
In addition, have you been told that you may need to replace your mortgage with a repayment mortgage instead of relying on rising housing prices? Otherwise, it could also mean a wrong sale.
If you would like to complain about an incorrect sale of a mortgage for interest only, use our template.
Remortgaging to clear your debts
If you would like to consolidate your debts, do you advise that it would be cheaper if you mortgaged all your loans, credit cards and finances? 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?.
Otherwise, you can replace short-term debts with long-term ones by adding them to the mortgage.
The counselor explained to you that even though you would initially reduce your monthly expenses, you might be extending your debt term and greatly increasing the amount of interest you would pay?
If not, this could be considered a wrong sale.
Complain to the provider with our letter template if you have been asked to re-pledge to settle debts.
Top tips
Household budget analysis
Were you asked to complete an analysis of the household budget? Were you asked what your monthly income was and what your monthly expenses were?
They found out with you how much money you have left per month after paying all the bills, ie. Disposable income?
If this was not done, you may have unknowingly committed to a mortgage that you could not afford.
Self Certification mortgages
Did you have to provide proof of your income, such as payslips or audited invoices that could prove your income?
Otherwise, did it motivate you to take out a “Self Cert” or “Fast Track” mortgage where you didn’t have to prove income?
These mortgage products paid much higher commissions and were therefore very popular among some brokers.
If this applies to you, the mortgage may have been sold incorrectly.
Mortgages running past retirement
Will your mortgage expire before retirement age? Have you been warned about this?
Has your broker or lender talked about how you will meet your mortgage payments after retirement?
A good example of this would be if someone over the age of 50 takes out a mortgage for 20 years.
The average retirement age is 65, which means there will be five years left to pay the mortgage.
If at the time of the agreement, the consultant did not consider whether the buyer could afford to pay after the age of 65, the client may have sold the mortgage incorrectly.
If you feel you have been sold incorrectly, please complain with our template.
High broker fees
Did you pay unreasonably high commissions to the broker or advisor who arranged your mortgage?
Were you aware of what the fees would be?
Did they add them to your mortgage without you knowing that you now pay interest on them every month?
If any of the above applies to you, you may have a wrong sale and may want to use our complaint template with your provider.
Which? Money Compare
Mortgage write-off is a complicated process. Visit Which? Money Compare to compare hundreds of mortgages and find the ones with the best prices and the best customer service.
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