Endowment policies
Contents
If you were offered a mortgage to pay off your mortgage at the end of the day, would you not agree that it would not be possible to pay it back in full? 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 marketing ploy. Read our guide to best-selling grants if you think this might work for you.
Interest Only Mortgages
If you were paying only interest on your monthly mortgage, the adviser should have told you how to pay off your mortgage once it was paid off. 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 employer or supplier has not discussed this with you or provided you with examples of capital and repayment loan costs compared to lower mortgage interest rates only, then this may be are an example of poor marketing.
Furthermore, have you been told that you may have to change your mortgage for a Repayment loan instead of relying on higher house prices? If not, then this could lead to the wrong sales.
Use a template letter if you want to complain about a bad sale on a mortgage only.
Remortgaging to clear your debts
If you wanted to combine your debts, were you advised that it would be cheaper for you to put all your debts, credit cards and bills into your credit? 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 not, you can exchange short-term loans for long-term debt by adding it to your loan.
Did the counselor explain that although you may be reducing your monthly expenses in the first place, you may be able to extend the duration of your loan and increase your interest rate?
If not, this could be considered a bad sale.
Complain to your credit provider about our template letter if you are encouraged to pay off a debt to cancel your debts.
Top tips
Household budget analysis
Were you asked to complete a family audit? Have you ever been asked what your monthly income is, and where it comes from each month?
Have they worked with you on how much money you have left each month after paying off all your debts, i.e. your disposable income?
If this is not done, you may be committing to a debt that you would not be able to afford.
Self Certification mortgages
Were you asked to provide proof of your income, for example, payslips or audited accounts that could verify your income?
If not, were you encouraged to take what is known as a ‘Self Cert’ or ‘Fast Track’, where you did not have to prove your worth?
These mortgage products have paid very high commissions and were very popular among other retailers for the same reason.
If this applies to you, your mortgage may be subject to liquidity.
Mortgages running past retirement
Should your credit limit exceed your retirement age? Have you been shown this?
Has your vendor or supplier discussed what to do with your mortgage once you retire?
A good example of this would be if someone took out a mortgage for 20 years from 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 consider whether the buyer would be able to make payments after the age of 65, the buyer could be sold off his debt badly.
Use the template letter to complain if you think you have been badly sold.
High broker fees
Do you pay unreasonably high fees to a broker or consultant who has arranged your mortgage?
Have you been informed of what the charges will be?
Are they included in your loan without knowing that you are now paying them interest every month?
If any of the above applies to you you may have a case of malicious sale and you may want to use our template letter to complain to your provider.
Which? Money Compare
Debt settlement is a complex process. Which Visit? Money Compare to compare hundreds of home loans and find the ones with the best rates and the best customer service.
Which Ltd is the Designated Introductory Representative? Financial Services Ltd, licensed and regulated by the Financial Conduct Authority.
What? What are mortgage counselors? And Which Insurance Advisers? Money comparison is what are the business names? Financial Services.
