- 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 take out an investment that was meant to pay off your mortgage when it was finished, did you later discover that you would not be paid enough? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
In that case, this could constitute a mis-sold policy. Read our guide to wrongly sold scholarships if you think this may apply to you.
Interest Only Mortgages
If you only paid the interest on your mortgage each month, the advisor should have made you aware of how you would repay your mortgage when it was finished. See the article : I think I’ve been mis-sold my mortgage, what can I do?.
If your broker or lender did not discuss this with you or gave you examples of the cost of a mortgage and repayment loan compared to the lower cost of an interest rate loan, then this would be an example of a mis-sale.
Also, was it explained to you that you may need to switch your mortgage to a repayment loan rather than relying on rising house prices? If not, this can also constitute mis-selling.
Use our template letter if you want to complain that you have incorrectly sold an adjustable rate loan.
Remortgaging to clear your debts
If you wanted to consolidate your debt, were you advised that it would be cheaper for you to put all your loans, credit cards and financing on your mortgage? 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 not, you can exchange short-term debt for long-term debt by adding it to your mortgage.
Did the adviser explain to you that even if you initially wanted to lower your monthly expenses, you could very well extend your debt period and increase the interest rate you would pay sharply?
If not, this can be considered mis-selling.
Complain to your provider with our template letter if you were asked to remortgage to clear your debt.
Household budget analysis
Were you asked to conduct a household budget analysis? Were you asked how much your monthly income was and what your monthly expenses were?
Did they work with you how much money you had left each month after paying all your bills, i.e. your disposable income?
If this was not done, you may have unknowingly committed to a mortgage that you could not afford.
Self Certification mortgages
Were you asked to provide proof of your income, such as payslips or audited accounts that could prove your income?
If not, were you encouraged to take out the so-called ‘Self Cert’ or ‘Fast Track’ mortgage where you did not have to prove your income?
These mortgage products paid much higher commissions and were very popular among some brokers for that reason.
If this applied to you, your mortgage may have been sold incorrectly.
Mortgages running past retirement
Should your mortgage run past your retirement age? Was this 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 takes a mortgage for 20 years at the age of 50 years.
The average retirement age is 65 years, which means that there are 5 years left to pay on the mortgage.
If the adviser did not at the time of the agreement take into account whether the customer could afford to make the payments after the age of 65, the customer may have been wrongly sold his mortgage.
Use our template letter to complain if you think you have been sold incorrectly.
High broker fees
Have you paid unreasonably high fees to the broker or adviser who arranged your mortgage?
Did you become aware of what the fees would be?
Were they added to your mortgage without your knowledge, so you now pay interest on them every month?
If any of the above applies to you, you may have misunderstood a case and you may want to use our template letter to complain to your provider.
Which? Money Compare
It is a complicated process to take out a mortgage. Visit which? Money Compare to compare hundreds of mortgages and find them with the best prices and best customer service.
Which Ltd is an Introducer appointed as a representative of which? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which one? Mortgage advisers, which ones? Insurance advisors and which ones? Money Compare are trade names for which? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
A mis-sold mortgage implies that the lender did not check their facts and gave you a mortgage that does not suit your situation. Sometimes this may have been intentional to make you pay more. With one of these claims, you can claim substantial compensation.
Could I have been mis-sold an interest-only mortgage?
MIS-SOLD LOAN CLAIM This means that you may pay month by month for years and never really own your house and still have the full mortgage amount outstanding at the end of the term. However, if you were pushed into an interest rate loan and were not suitable for it, you might be able to make claims.
Can I sell my house if I have an interest-only mortgage?
Many landlords pay their mortgages on an interest basis, and lenders generally accept this. Either way, if you are unable to repay the amount you borrow at the end of the term, you will need to take out a new mortgage or sell the property to pay off your mortgage.
Is mis selling illegal?
In its simplest form, abuse means misunderstood misleading of a product or service in order to complete a sale. … Financial abuse is illegal in most countries. A basic example of abuse would be a person without relatives who is manipulated into buying life insurance.
How do you spell mis-sold?
Definition of ‘incorrectly sold’ The incorrectly sold payment protection insurance. Now they will feel wrongly sold under the Planning Act. There is no suggestion that anyone was specifically mis-sold. I feel like we were sold wrong and want compensation.
How can mis-selling of financial products be regulated?
Regulators around the world, including countries such as India, have responded to problems of retail mismanagement by strengthening consumer protection rules in the form of disclosure standards, bans on commissions and volume-based payments, and product adequacy requirements.
How do I complain about mis selling?
If you have sold a financial product incorrectly
- Step 1 – Gather all the information you need. You do not have to find concrete evidence, but you do have to explain your problem. …
- Step 2 – Complain to your provider or advisor. …
- Step 3 – Ask an ombudsman service to investigate.
How long do companies have to respond to a complaint?
Confirmation of your complaint Unless they resolve your complaint within 3 business days, all companies must respond in writing to let you know 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 appoint an individual in the company or in the same group as the company to be responsible for overseeing the company’s compliance with DISP 1. The designated person must perform an FCA governing function at the company or in the same group as the company.
Can I claim for a mis-sold mortgage?
Submit a mis-sold mortgage claim In a mis-sold mortgage claim, you must prove: that you were sold a mortgage by the broker / lender / adviser that you are claiming against. That they violated one or more of their obligations under FCA rules.
What is a mis-sold loan?
Examples of abusing 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 ended beyond your retirement age; … to switch mortgages, but not told about commission payments paid to an adviser by the lender; or.
How much compensation will I get for mis-sold pension?
The compensation you receive varies greatly from case to case depending on your situation and the size of the pension pot. However, the average amount of compensation required for pension abuse cases is around £ 25,000 for private pensions and £ 50,000 for final pay pensions.
Can I claim for a mis-sold pension?
If you believe that you have received an incorrectly sold pension or have received unreliable advice from a financial adviser, you can make a claim yourself via the Financial Services Compensation Scheme, the Financial Ombudsman Service, The Pensions Ombudsman and directly to the person to whom your claim relates or You can …