- 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 How do I complain about mis selling?
- 11 Is mis selling illegal?
- 12 Can I claim for a mis-sold mortgage?
If you were advised to make an investment to pay off your mortgage when it ended, did you find out later that you would not be getting enough? See the article : I think I’ve been mis-sold my mortgage, what can I do?.
In that case, this may constitute an incorrect sales policy. Read our guide to appropriations sold incorrectly if you think this may apply to you.
Interest Only Mortgages
If you were paying only the interest on your mortgage each month, the consultant should have warned you about how you would pay your mortgage when it ended. 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 this with you or gave 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 an incorrect sale.
Also, has it been explained to you that you may have to switch your mortgage to a Refund mortgage, instead of depending on rising home prices? Otherwise, this can also constitute an improper sale.
Use our letter template if you want to complain about the improper sale of a mortgage at interest only.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you warned that it would be cheaper to put all your loans, credit cards and finances in your mortgage? See the article : I think I’ve been mis-sold my mortgage, what can I do?.
Otherwise, you can exchange short-term debt for long-term debt, adding it to your mortgage.
The consultant explained that, although you were initially reducing your monthly expenses, can you very well extend the term of your debt and greatly increase the amount of interest you would be paying?
Otherwise, this can be considered a misleading sale.
Complain to your provider with our letter template if you are encouraged to remortgage to settle your debts.
Household budget analysis
Have you been asked to do an analysis of the family budget? Were you asked how much your monthly income was and what your monthly expenses were?
Did they calculate with you how much money you had left each month after paying all your bills, that is, your disposable income?
If this was not done, you may have unconsciously committed yourself too much to a mortgage that you could not afford.
Self Certification mortgages
Have you been asked to provide evidence of your income, for example, payrolls or audited accounts that could prove your income?
If not, were you encouraged to do what is known as an ‘Auto Cert’ or ‘Fast Track’ mortgage, where you didn’t need to prove your income?
These mortgage products paid much higher fees and were very popular with some brokers for that reason.
If this applies to you, your mortgage may have been poorly sold.
Mortgages running past retirement
Has your mortgage passed retirement age? Has that been pointed out to you?
Did your broker or lender discuss how you would meet your mortgage payments when you retired?
A good example of this would be if someone made a mortgage for 20 years at age 50.
The average retirement age is at 65, which means that there will be 5 years left to pay the mortgage.
If, at the time of the agreement, the consultant did not consider whether the customer could make payments after the age of 65, then the customer may have sold his mortgage in error.
Use our model letter to complain if you think it was under-sold.
High broker fees
Did you pay excessively high fees to the broker or consultant who provided your mortgage?
Were you told what the fees would be?
They were added to your mortgage without you knowing it, so are you now paying interest on them every month?
If any of the above applies to you, then you may have a case of improper selling and you may want to use our model letter to complain to your provider.
Which? Money Compare
The mortgage is a complicated process. Visit which one? Money Compare to compare hundreds of mortgages and find those with the best rates and the best customer service.
Which Ltd is a representative nominated by the presenter of which? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
What? Which mortgage consultants? Insurance consultants and which ones? Money Compare are trade names of which? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
A mortgage sold incorrectly implies that the lender did not verify your facts and gave you a mortgage that did not suit your situation. Sometimes, this may have been on purpose to make you pay more. With any of these claims, you will be able to claim a substantial amount of damages.
Can I sell my house if I have an interest-only mortgage?
Many homeowners pay their mortgages based only on interest, and lenders generally accept this. In any case, if you are unable to repay the loan amount at the end of the term, you will need to take out a new mortgage or sell the property to pay off your mortgage.
Could I have been mis-sold an interest-only mortgage?
MIS SOLD MORTGAGE CLAIMS This means that you can be paying month-to-month for years, and never be the true owner of your home and still have the full amount of the mortgage pending at the end of the term. But if you are pushed into a mortgage with interest only and are not suitable for it, you can make a claim.
How do I complain about mis selling?
If you sold a financial product badly
- Step 1 – Gather all the information you need. You don’t need to find hard evidence, but you do need to explain your problem. …
- Step 2 – Complain to your provider or consultant. …
- Step 3 – Ask an ombudsman to investigate.
How long do companies have to respond to a complaint?
Confirming your complaint Unless they resolve your complaint within 3 business days, all companies are required to 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 company must nominate an individual in the company, or in the same group as the company, to have responsibility for overseeing compliance with DISP 1. The nominated individual must be performing an FCA governance role in the company or in the same group as the company.
Is mis selling illegal?
In its simplest form, misselling means recklessly misrepresenting a product or service to successfully complete a sale. … Financial selling mistakes are illegal in most countries. A basic example of incorrect selling would be a person without dependents being manipulated to purchase life insurance.
How do you spell mis-sold?
Definition of ‘incorrect sale’ It is an incorrect sale of payment protection insurance. Now they will feel badly sold under the planning law. There is no suggestion that any one was specifically sold incorrectly. I feel like we were poorly sold and I want compensation.
How can mis-selling of financial products be regulated?
Regulators around the world, including countries like India, have responded to the problems of erroneous sales in retail finance by strengthening consumer protection regulations in the form of disclosure standards, banning commissions and volume-based payments and appropriateness of sale requirements of products .
Can I claim for a mis-sold mortgage?
Making an incorrectly sold mortgage claim In an incorrectly sold mortgage claim, you will need to prove: That a mortgage has been sold by the broker / lender / consultant against which you are claiming. That they have violated one or more of their obligations under FCA rules.
Can I claim for a mis-sold pension?
If you believe that you have improperly sold a pension or received unreliable advice from a financial advisor, you can file a claim free of charge through the Financial Services Compensation Scheme, the Financial Ombudsman Service, the Pensions Ombudsman and directly to the person to whom your claim is made. refers to; or you can …
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 the size of the pension fund. However, the average amount of compensation claimed in cases of misappropriation of pensions is about £ 25,000 for private pensions and £ 50,000 for final maturity pensions.
What is a mis-sold loan?
Examples of misappropriating mortgages to borrow money without proving your income (known as self-certification) or were advised to overestimate your income; to take out a mortgage that has ended beyond the retirement age date; … to switch mortgages, but not informed about commission payments being paid to a consultant by the lender; or.