- 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 Is mis selling illegal?
- 11 How do I complain about mis selling?
- 12 Can I claim for a mis-sold mortgage?
If you were advised to make an investment intended to pay off your mortgage when it expired, did you later discover that you would not be paid enough? On the same subject : I think I’ve been mis-sold my mortgage, what can I do?.
If so, this could constitute a mis-sold policy. Read our guide to mis-selling funds if you think this might apply to you.
Interest Only Mortgages
If you were to pay only the interest on your mortgage on a monthly basis, then the counselor should let you know how you would repay your mortgage when it expires. 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 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 would be an example of a mis-sale.
Furthermore, have you been told that you may have to change your mortgage to a repayable mortgage instead of relying on rising house prices? If not, then this could also constitute a mis-selling.
Use our template letter if you want to complain about mis-selling of an interest only mortgage.
Remortgaging to clear your debts
If you were aiming to consolidate your debts, did you advise that it would be cheaper for you to put all your loans, credit cards and finances on your mortgage? 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 not, you could exchange short-term debt for long-term debt by adding it to your mortgage.
Did the counselor explain to you that although you would initially decrease your monthly expenses, you might extend the duration of your debt and greatly increase the interest you would pay?
If not, this could amount to mis-selling.
Complain to your provider with our template letter if you would be prompted to repay in order to clear your debts.
Household budget analysis
Were you asked to perform a home budget analysis? Have you ever wondered how much your monthly income was, and what your monthly expenses were?
Did they figure out with you how much money you had left over each month after paying all of your bills i.e. of your disposable income?
If this wasn’t done, you may have unknowingly committed too much to a mortgage you couldn’t afford.
Self Certification mortgages
Were you asked to prove proof of your income, for example, pay tables or audited accounts that could prove your income?
If not, did you dare to take out what is called a “Self-assured” or “Quick” mortgage, where you didn’t need to prove your income?
These mortgage products paid much higher commissions and were very popular among some brokers precisely because of this.
If this was true for you, your mortgage may have been mis-sold.
Mortgages running past retirement
Does your mortgage have to go beyond your retirement? Has this been brought to your attention?
Has your broker or lender discussed how you would make your mortgage payments after you retire?
A good example of this would be if someone 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 the mortgage.
If at the time of agreement, the counselor did not consider whether the client could afford to pay after the age of 65, then the client may have mis-sold his mortgage.
Use our template letter to complain if you think you have been mis-sold.
High broker fees
Did you pay unfairly high fees to the broker or advisor who arranged your mortgage?
Were you aware of what the fees would be?
Have they been added to your mortgage without you knowing, so you now pay interest on them every month?
If any of the above apply to you, then you may have a mis-sale and may want to use our template letter to complain to your supplier.
Which? Money Compare
Paying off a mortgage is a complicated process. Visit Who? Money Compare to compare hundreds of mortgages and find those with the best rates and best customer service.
Who Ltd is Introducer Appointed Representative of Who? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Who? Mortgage Advisors, Who? Insurance Advisors and Who? Money Comparison are trade names of Who? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
Some cases of unsold mortgages are quite clear as to why the claimant is entitled to compensation. This may be because: The claimant has already retired after the mortgage date. … Your lender had you with a fixed interest mortgage, but you were advised to change without being informed of any fees due to abandoning the plan.
Could I have been mis-sold an interest-only mortgage?
MIS-SOLD MORTGAGE CLAIMS This means that you could pay off month after month for years, and never really own your house, and still have the full mortgage amount at the end of the period. But if you were pushed into a mere interest-bearing mortgage and were unfit for it, you could make a claim.
Can I sell my house if I have an interest-only mortgage?
Many landlords pay their mortgages only interest and lenders generally accept this. Either way, if you are unable to repay the amount you borrowed at the end of the period, you will have to make a new mortgage or sell the property to pay off your mortgage.
Is mis selling illegal?
In its simplest form, mis-selling means rashly misrepresenting a product or service in order to successfully complete a sale. … Financial misappropriation is illegal in most countries. A basic example of mis-selling would be a person, with no dependents manipulated to buy life insurance.
How do you spell mis-sold?
Definition of ‘mis-sold’ It mis-sold payment protection insurance. Now they will feel misplaced about plan law. There is no suggestion that some were specifically mis-sold. I feel we have been mis-sold and want compensation.
How can mis-selling of financial products be regulated?
Regulators around the world, including countries like India, have responded to problems of mis-selling in retail finance by tightening rules on consumer protection in the form of overt standards, prohibition of commissions and optional payments and appropriate requirements in the sale of products. .
How do I complain about mis selling?
If you mis-sold a financial product
- Step 1 – Gather all the information you need. You don’t need to find concrete proof, but you do need to explain your problem. …
- Step 2 – Complain to your provider or advisor. …
- Step 3 – Ask for a mediator service to investigate.
How long do companies have to respond to a complaint?
Acknowledging your complaint Unless they resolve your complaint within 3 business days, all companies must respond in writing to inform you that they have received your complaint.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
A firm must appoint an individual at the firm, or in the same group as the firm, to have responsibility for overseeing the firm’s performance with DISP 1. The nominated individual must perform an FCA governing function at the firm or in the same group as the company.
Can I claim for a mis-sold mortgage?
Make a mis-sold mortgage claim In a mis-sold mortgage claim, you will need to prove: That you sold a mortgage from the broker / lender / advisor against whom you are claiming. That they have violated one or more of their duties under FCA rules.
What is a mis-sold loan?
Examples of mortgage misappropriation to borrow money without proving your income (called self-certification) or have been advised to exaggerate your income; make a mortgage that expired after your date of retirement; … change mortgage but have not been informed of commission payments paid to an adviser of the lender; or.
How much compensation will I get for mis-sold pension?
The compensation you will receive varies greatly from case to case, depending on your situation and size of pension pot. However the average amount of compensation required for cases of mis-selling is around £ 25,000 for private pensions and £ 50,000 for final salary pensions.
Can I claim for a mis-sold pension?
If you believe you have mis-sold a pension or received unreliable advice from a financial advisor, you can advertise yourself for free through the Financial Services Compensation Scheme, the Financial Mediator Service, the Mediator Pension and directly to the person to whom your claim relates; or you can …