- 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 Can I claim for a mis-sold mortgage?
- 11 How do I complain about mis selling?
- 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 to you enough? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
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 interest on your mortgage on a monthly basis, then your advisor should introduce you to how you will repay the mortgage when it is completed. 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 has not talked to you about it or given you examples of the cost of a mortgage on equity and repayment compared to the lower cost of a mortgage with only interest, then this would be an example of a wrong sale.
Furthermore, have you been explained that you may need to switch mortgages to mortgage repayments instead of relying on rising house prices? If not, then it could also constitute a wrong sale.
Use our letter template if you want to complain about an incorrect sale of a mortgage with only interest.
Remortgaging to clear your debts
If you wanted to consolidate your debts, did they advise you that it would be cheaper to put all your loans, credit cards and finances on a mortgage? Read also : I think I’ve been mis-sold my mortgage, what can I do?.
If not, you can replace short-term debts with long-term additions 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 service provider with our template if you were prompted to re-mortgage to settle your debts.
Household budget analysis
Did they ask you 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 paying all the bills, i.e. disposable income?
If this is not done, you may have unknowingly exaggerated into a mortgage you could not afford.
Self Certification mortgages
Have they asked you to provide proof of your income, for example, payrolls or audited invoices that can prove your income?
If not, did they encourage you 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 exceed retirement age? Has this been pointed out to you?
Has your broker or lender discussed 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 consider whether the buyer could afford to pay after the age of 65, then he may have sold the mortgage incorrectly.
Use our template to complain if you think you were sold wrong.
High broker fees
Have you paid unreasonably high fees to the broker or advisor who contracted 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 you may want to use our template to complain to your service provider.
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 as a representative of the Editorial? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Who? Mortgage advisors, who? Insurance advisors and which ones? Money Compare trade names are Which? Financial services limited.
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 be intentionally forced to pay more. With any of these requirements, you will be able to claim a substantial amount of compensation.
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 raise a new mortgage or sell the property to repay the mortgage.
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 still have an outstanding full mortgage amount. 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 claim for a mis-sold mortgage?
Setting up a wrongly sold mortgage In a wrongly sold mortgage, you will have to prove: that the intermediary, lender / advisor against whom you are selling the mortgage sold the mortgage to you. That they have breached one or more of their obligations under FCA rules.
Can I claim for a mis-sold pension?
If you feel that your pension has been sold incorrectly or you have received unreliable advice from a financial advisor, you can apply yourself through 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 …
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 age; … replace the mortgage, but is not told that the lender pays the advisor to the advisor; or.
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 your pension insurance. However, the average amount of compensation claimed for pension sales cases is around £ 25,000 for private pensions and £ 50,000 for final pensions.
How do I complain about mis selling?
If you sold the financial product incorrectly
- Step 1 – Collect all the necessary data. 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.
How long do companies have to respond to a complaint?
Acknowledging your complaint If they do not resolve your complaint within 3 business days, all companies are required to 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?
The firm must appoint an individual in the firm or in the same group as the firm to be responsible for overseeing the firm’s compliance with DISP 1. The nominee must perform an FCA administrative function in the firm or in the same group as the firm.
Is mis selling illegal?
In its simplest form, mistaking means misrepresenting a product or service in order to successfully complete a sale. … Financial counterfeiting is illegal in most countries. A basic example of a misappropriation would be a person without dependent persons who are manipulated to buy life insurance.
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 we were sold wrong and I want compensation.
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 data disclosure standards, prohibition of commission and payment based on quantity, and eligibility requirements in product sales.