I think I’ve been mis-sold my mortgage, what can I do?

Endowment policies

If you were advised to take out an investment that would pay off your mortgage at the end, did you later discover that you would not be paid enough? See the article : I think I’ve been mis-sold my mortgage, what can I do?.

If so, this could constitute an improper sales policy. Read our guide to poorly selling equipment if you think this might apply to you.

Interest Only Mortgages

If you only paid interest on the mortgage each month, the consultant would have to tell you how you would repay the mortgage when it was finished. Read also : 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 repayment and principal mortgage versus the lower costs of an interest-only mortgage, then this would be an example of a mis-selling.

Also, has it been explained to you that you may need to convert your mortgage into a repayment mortgage rather than rely on rising house prices? If not, this could also constitute an improper sale.

Use our letter template if you want to complain that you sold an interest-only mortgage badly.

Remortgaging to clear your debts

If you were looking to consolidate your debts, were you told that it would be more convenient for you to put all your loans, credit cards and loans on your mortgage? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.

If not, you could swap short-term debt for long-term debt by adding it to your mortgage.

Did the counselor explain to you that although you would initially have lowered your monthly outgoings, you could extend the duration of your debt and greatly increase the amount of interest you would pay?

If not, this could be considered an improper sale.

Complain to your provider with our model letter if you have been encouraged to repay your mortgage to clear your debts.

Top tips

Household budget analysis

Have you been asked to complete a family budget analysis? Were you asked how much was your monthly income and what were your monthly outgoings?

Did they calculate with you how much money you had left each month after paying all your bills, that is, your disposable income?

If not done, you may have unknowingly over-committed to a mortgage that you couldn’t afford.

Self Certification mortgages

Have you been asked to provide proof of your income, such as pay slips or certified accounts that could prove your income?

If not, have you been encouraged to take out what is known as a “Self Cert” or “Fast Track” mortgage, where you don’t need to prove your income?

These mortgage products paid much higher fees and were very popular with some brokers for this very reason.

If this applied to you, your mortgage may have been badly sold.

Mortgages running past retirement

Does your mortgage have to expire beyond your retirement age? Was it pointed out to you?

Has your broker or lender discussed how you would pay your mortgage payments once you retire?

A good example of this would be if someone took out a mortgage for 20 years at the age of 50.

The average retirement age is 65, which means there are 5 years left to pay the mortgage.

If at the time of the agreement, the consultant did not consider whether the client could afford to make payments after age 65, then the client may have sold the mortgage poorly.

Use our letter template to complain if you think you’ve been badly sold.

High broker fees

Have you paid unreasonably high commissions to the broker or advisor who arranged your mortgage?

Have you been informed what the fees would be?

Were they added to your mortgage without your knowing so that you now pay interest on them every month?

If any of the above apply to you, you may have a mis-selling case and you may want to use our letter template to complain to your supplier.

Which? Money Compare

Taking out a mortgage is a complicated process. Visit which one? Money Compare to compare hundreds of mortgages and find the ones with the best rates and the best customer service.

Which Ltd is an introducer designated representative of which one? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.

Which? Mortgage consultants, which ones? Insurance consultants and which ones? Money Compare are Which Trade Names? Financial Services Limited.

What happens if you have been mis-sold a mortgage?

A badly sold mortgage implies that the lender did not verify the facts and granted you a mortgage that did not fit your situation. Sometimes this may have been on purpose to make you pay more. With one of these claims, you will be able to claim a substantial amount of compensation.

Could I have been mis-sold an interest-only mortgage?

MORTGAGE CLAIMS SOLD FOR ERROR This means you could pay month-to-month for years, and never actually own your home, and still have the full mortgage amount outstanding at the end of the term. But if you’ve been pushed into an interest-only mortgage and aren’t eligible, you may be able to file a claim.

Can I sell my house if I have an interest-only mortgage?

Many landowners pay their mortgages for interest only, and lenders generally accept this. However, if you cannot repay the borrowed amount at the end of the period, you will need to take out a new mortgage or sell the property to pay off the mortgage.

Is mis selling illegal?

In its simplest form, misselling means recklessly misrepresenting a product or service in order to successfully complete a sale. … Financial misselling is illegal in most countries. A basic example of misselling could be a person with no dependents being manipulated into purchasing life insurance.

How do you spell mis-sold?

Definition of “wrong sale” Payment protection insurance sold incorrectly. Now they will feel badly sold on the planning law. There is no suggestion that anyone in particular was being sold improperly. I feel we have been badly sold and we 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 mis-selling in retail finance by strengthening consumer protection regulations in the form of disclosure standards, ban on commission and volume-based payments, and eligibility requirements in product sales.

Can I claim for a mis-sold mortgage?

Submitting a Wrong Sale Mortgage Claim In an incorrect sale mortgage claim, you must prove: That a mortgage has been sold by the broker / lender / consultant you are claiming against. Who have violated one or more of their obligations under the FCA rules.

Can I claim for a mis-sold pension?

If you believe you have been mistakenly 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 your referrals to. request; 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 your pension fund. However, the average amount of compensation claimed in cases of pension mis-selling is around £ 25,000 for private pensions and £ 50,000 for final salary pensions.

What is a mis-sold loan?

Examples of illicit mortgage sales to borrow money without proving your income (known as self-certification) or being advised to overestimate your income; take out a loan that has expired beyond the date of retirement age; … to change mortgage but are not told about commission payments paid to a consultant by the lender; or.

How do I complain about mis selling?

If you have badly sold a financial product

• Step 1 – Gather all the information you need. You don’t have to find hard evidence, but you have to explain your problem. …
• Step 2: File a complaint with your supplier or consultant. …
• Step 3: Ask an ombudsman service to investigate.

Who is expected to be responsible for the oversight of a firm’s complaint handling procedures?

A company must appoint a person at the company, or in the same group as the company, to be responsible for overseeing the company’s compliance with DISP 1. The nominated person must perform an FCA governance function at the company or in the same group as the company.

How long do companies have to respond to a complaint?

Acknowledging Your Complaint Unless you resolve your complaint within 3 business days, all companies are required to respond in writing to let you know they have received your complaint.