Endowment policies
Contents
If you were advised to take out an investment to pay off your mortgage when it was over, would you later find out 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 be a bad-selling policy. Read our guide on mis-sold endowments if you think this may apply to you.
Interest Only Mortgages
If you only pay the interest on your mortgage each month, the advisor should have told you how to repay your mortgage when it expires. See the article : 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 it with you or give you examples of the cost of a principal and amortization mortgage compared to the lower costs of an interest-only mortgage, this would be an example of a bad sale. .
Also, were you told that you might need to change your mortgage for a payday mortgage instead of relying on rising house prices? Otherwise, it could also be a bad sale.
Use our letter template if you want to complain about the bad sale of an exclusive interest mortgage.
Remortgaging to clear your debts
If you wanted to consolidate your debts, were you advised that it would be cheaper to put all your loans, credit cards, and financing in your mortgage? To see also : I think I’ve been mis-sold my mortgage, what can I do?.
Otherwise, you could exchange short-term debt for long-term debt by adding it to your mortgage.
The advisor explained to you that while you would initially reduce your monthly expenses, you may be extending your debt and greatly increasing the amount of interest you will pay?
Otherwise, it could be constituted as a bad sale.
Claim your provider with our letter template if we encourage you to withdraw your mortgage to clear your debts.
Top tips
Household budget analysis
Were you asked to perform a household budget analysis? They asked him how much his monthly income was and what his monthly expenses were?
Have they calculated with you how much money you have left each month after paying all the bills, that is, the disposable income?
If this is not done, you may have unknowingly over-committed a mortgage that could not be afforded.
Self Certification mortgages
Were you asked to provide proof of your income, for example, payroll or audited accounts that could prove your income?
If not, were you encouraged to take on what is known as an “Autocert” or “Fast Track” mortgage, where you don’t need to prove your income?
These mortgage products paid much higher commissions and for this reason were very popular among some brokers.
If this applies to you, your mortgage may have been sold incorrectly.
Mortgages running past retirement
Does your mortgage have to exceed retirement age? Did he point this out to you?
Did your broker or lender discuss how you would meet your mortgage payments once you withdrew?
A good example of this would be if someone took out a mortgage for 20 years to 50 years.
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 advisor did not consider whether the client could afford to pay after age 65, it is possible that the client has mis-sold their mortgage.
Use our template letter to complain if you think you have been sold poorly.
High broker fees
Have you paid excessively high commissions to the broker or advisor who arranged your mortgage?
Have you been informed of what the fees would be?
They were added to your mortgage without you knowing it and now you pay interest every month?
If any of the above apply to you, you may have a bad sale and may want to use our letter template to claim from your supplier.
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