- 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 How do I complain about mis selling?
- 10 Can I claim for a mis-sold mortgage?
- 11 What happens if you have been mis-sold a mortgage?
- 12 Is mis selling illegal?
If you were advised to make an investment to repay the mortgage when it was over, did you later discover that it would not be paid enough for you? 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 this is the case, this could be a wrongly sold policy. Read our guide to mis-sold endowments if you think this might apply to you.
Interest Only Mortgages
If you only paid monthly interest on the mortgage, then the advisor should let you know how you will repay the mortgage when it is over. To see also : I think I’ve been mis-sold my mortgage, what can I do?.
If your broker or lender has not discussed this with you or given you examples of the cost of the mortgage on equity and repayment compared to the lower cost of the mortgage on interest only, then this would be an example of a wrong sale.
Furthermore, have you been told that you may need to switch mortgages to mortgage repayments instead of relying on rising house prices? If not, then it could be a fake sale.
Use our letter form if you want to complain about the wrong sale of a mortgage with only interest.
Remortgaging to clear your debts
If you wanted to consolidate debts, did they advise you that it would be cheaper for you to put all your loans, credit cards and finances on a mortgage? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
If not, you can replace short-term debts with long-term ones by adding them to the mortgage.
Did the advisor explain to you that, although you would initially reduce your monthly expenses, you might be extending the term of your debt and greatly increasing the amount of interest you would pay?
If not, this could be considered a wrong sale.
Complain to your supplier via our template letter if you were encouraged to re-mortgage to settle your debts.
Household budget analysis
Are you asked to complete a home budget analysis? Did they ask you what your monthly income was and what your monthly expenses were?
Did they calculate with you how much money you have left each month after you pay all the bills, or disposable income?
If that’s not done, you may have unknowingly overdid it on a mortgage you couldn’t afford.
Self Certification mortgages
Have you been asked to provide proof of your income, for example, payrolls or audited invoices that could prove your income?
If not, were you encouraged to pick up what is known as a “Self Cert” or “Fast Track” mortgage, where you didn’t have to prove your income?
These mortgage products paid far higher commissions and were very popular among some brokers for this very reason.
If this applies to you, your mortgage may have been sold incorrectly.
Mortgages running past retirement
Will your mortgage cross your retirement age? Has this been pointed out to you?
Has your broker or lender talked about how you will settle your mortgage after retirement?
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 the agreement the advisor did not take into account whether the buyer can afford to pay after the age of 65, then the client may have been wrongly sold the mortgage.
Use our letter with a template to complain if you think you have been sold wrong.
High broker fees
Did you pay unreasonably high fees to the broker or advisor who arranged your mortgage?
Did you know what the fees will be?
Were they added to your mortgage without you knowing, so you now pay interest on them every month?
If any of the above applies to you, you may have a case of a wrong sale and may want to use our letter form to complain to your supplier.
Which? Money Compare
Taking out a mortgage is a complex process. Visit Which? Money Compare to compare hundreds of mortgages and find the ones with the best rates and the best customer service.
Which Ltd has been appointed to represent the Editorial? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which? Mortgage advisors, who? Insurance advisors and which ones? Money Compare are the trade names of which? Financial Services Limited.
How do I complain about mis selling?
If you sold the financial product incorrectly
- Step 1 – Gather all the necessary information. You don’t have to find concrete evidence, but you do have to explain your problem. …
- Step 2 – Complain to your service provider or advisor. …
- Step 3 – Ask the ombudsman service to investigate.
Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?
The 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 appointed individual must perform the FCA management function in the company or in the same group as the company.
How long do companies have to respond to a complaint?
Recognition of your complaint Unless your complaint is resolved within 3 working days, all companies must respond in writing to let you know that they have received your complaint.
Can I claim for a mis-sold mortgage?
Filing a Wrongly Sold Mortgage In a wrongly sold mortgage, you will need to prove: that the broker, lender / advisor you are claiming has sold you the mortgage. That they have breached one or more of their obligations under FCA rules.
What is a mis-sold loan?
Examples of mis-selling a mortgage to borrow money without proof of income (known as self-certification) or you are advised to earn too high an income; to pick up a mortgage that ended after your retirement date; … to replace the mortgage, but was not told that the lender was paying the advisor; or.
Can I claim for a mis-sold pension?
If you feel that your pension has been sold incorrectly or that you have received unreliable advice from a financial advisor, you can apply yourself through the Financial Services Compensation Scheme, the Financial Ombudsman Service, the Pension Ombudsman and directly to the person to whom your claim relates; 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 for the sale of pensions is around £ 25,000 for private pensions and £ 50,000 for final pensions.
What happens if you have been mis-sold a mortgage?
An incorrectly sold mortgage means that the lender did not check their facts and gave you a mortgage that did not suit your situation. Sometimes this may have been intentional to make you pay more. With any of these requirements, you will be able to claim a significant amount of compensation.
Could I have been mis-sold an interest-only mortgage?
MIS-SOLD MORTGAGE RECEIVABLES This means that you could pay from month to month for years, you would never truly own your house, and at the end of the term you have an outstanding full amount of the mortgage. But if you’re stuck in a mortgage for interest only and if you’re not eligible for it, you might be able to apply.
Can I sell my house if I have an interest-only mortgage?
Many landlords pay their mortgages only with interest and lenders generally accept this. In any case, if you cannot repay the amount you borrow at the end of the term, you will have to take out a new mortgage or sell the property to repay the mortgage.
Is mis selling illegal?
In its simplest form, misselling means misrepresenting a product or service in order to successfully complete a sale. … Financial resale is illegal in most countries. A basic example of a misappropriation would be a person without dependent members who are manipulated to buy life insurance.
How can mis-selling of financial products be regulated?
Regulators around the world, including countries like India, have addressed the problem of misappropriation in retail financing by strengthening consumer protection regulations in the form of publication standards, ban on commissions and payments based on quantity and eligibility requirements in product sales.
How do you spell mis-sold?
Definition of “wrongly sold” This is a wrongly sold payment protection insurance. Now it will feel bad to sell because of the planning law. There is no suggestion that any one in particular was sold incorrectly. I feel they sold us wrong and I want compensation.