- 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 Is mis selling illegal?
- 12 How do I complain about mis selling?
If you were advised to take an investment designed to repay your mortgage after it finished, did you find out later that you would not be paid enough? This may interest you : I think I’ve been mis-sold my mortgage, what can I do?.
If so, this could be a mis-sold policy. Read our guide on mis-sold endowments if you think this may apply to you.
Interest Only Mortgages
If you only paid interest on your mortgage each month, then the adviser should have made you aware of how you would repay your mortgage on completion. To see 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 your broker or lender hadn’t discussed this with you or given you examples of the cost of a Capital and Repayment mortgage compared to the lower costs of a Interest Only mortgage, then this would be an example of mis-selling.
Furthermore, have you been made aware that you may have to change your mortgage to a Repayment mortgage rather than rely on rising house prices? If not, then this could also be a mis-selling.
Only use our template letter if you want to complain about being misappropriated interest mortgage.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you advised that it would be cheaper to put all your loans, credit cards and finance 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 could be swapping short-term debt for long-term debt by adding it to your mortgage.
Did the adviser explain to you that, although initially you would reduce your monthly expenses, you may well extend the term of your debt and significantly increase the amount of interest you would pay?
If not, this could amount to mis-selling.
Complain to your provider with our template letter if you have been encouraged to remortgage to clear your debts.
Household budget analysis
Have you been asked to complete 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 ie your disposable income?
If not, you may have unwittingly over-committed yourself to a mortgage that you could not afford.
Self Certification mortgages
Have you been asked to provide evidence of your income, for example, payslips or audited accounts that could prove your income?
If not, were you encouraged to take what is known as a ‘Self Cert’ or ‘Fast Track’ mortgage, where you did not need to prove your income?
These mortgage products paid much higher commissions and were very popular with some brokers for just that reason.
If this applied to you, your mortgage may have been mis-sold.
Mortgages running past retirement
Is your mortgage supposed to run beyond your retirement age? Was this pointed out to you?
Did your broker or lender discuss how you would pay off your mortgage payments after you retired?
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 on the mortgage.
If, at the time of agreement, the adviser failed to consider whether the customer could afford to make the payments after the age of 65, then the customer may have mis-sold their mortgage.
Use our template letter to complain if you think you have been mis-sold.
High broker fees
Did you pay unreasonably high fees to the broker or adviser who arranged your mortgage?
Did you know what the fees would be?
Were they added to your mortgage without your knowledge so you are now paying interest on them every month?
If any of the above applies to you then you may have a case of mis-selling and you may wish to use our template letter to complain to your provider.
Which? Money Compare
Taking out a mortgage is a complicated process. Visit Which? Money Compare to compare hundreds of mortgages and find those with the best rates and best customer service.
Which Ltd is the Appointed Representative of Presenter for Which? Financial Services Ltd, which is authorized and regulated by the Financial Conduct Authority.
Which one? Mortgage Advisors, Which? Insurance Advisers and Which? Compare Money are trading names of Which? Financial Services Limited.
What happens if you have been mis-sold a mortgage?
An mis-sold mortgage suggests that the lender did not check its facts and gave you a mortgage that did not suit your situation. Sometimes, this could have been purposeful to make you pay more. With either of these claims, 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 on an interest only basis and lenders generally accept this. Either way, if you can’t repay the amount you borrow at the end of 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?
MORT-SOLD MORTGAGE CLAIM This means you could be paying month to month for years, and never really own your house, and have the full mortgage amount due at the end of the term. But if you were pushed into and unsuitable for an Interest Only mortgage, you could be able to apply.
Can I claim for a mis-sold mortgage?
Making an unsold mortgage claim In a mis-sold mortgage claim, you will need to prove that: You have sold a mortgage from the broker / lender / adviser you are claiming against. They have breached one or more of their obligations under FCA rules.
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 compensation claimed for pension mis-selling cases is around £ 25,000 for private pensions and £ 50,000 for final salary pensions.
What is a mis-sold loan?
Examples of mortgage mis-selling to borrow money without proving your income (known as self-certification) or were advised to overstate your income; take out a mortgage that has expired beyond your retirement age date; … changing a mortgage but not being notified of commission payments made to an adviser by the lender; or.
Can I claim for a mis-sold pension?
If you think you have misappropriated a pension or received unreliable advice from a financial adviser, you can make your own claim for free through the Financial Services Compensation Scheme, the Financial Ombudsman Service, the Pensions Ombudsman and direct to ‘ the person to whom your application relates; or you can …
Is mis selling illegal?
In its simplest form, spelling involves the reckless misrepresentation of a product or service in order to successfully complete a sale. … Financial spelling is illegal in most countries. A basic example of spelling would be someone with no dependents being treated to buy life insurance.
How can mis-selling of financial products be regulated?
Regulators worldwide, including countries like India, have responded to problems of mis-selling in retail finance by strengthening consumer protection regulations in the form of disclosure standards, banning commissions and volume-based payments, and suitability requirements when selling products. .
How do you spell mis-sold?
Definition of ‘mis-selling’ It mis-sold payment protection insurance. Now they will feel they are being mis-sold on planning law. There is no suggestion that any have been specifically mis-sold. I feel we have been mis-sold and want compensation.
How do I complain about mis selling?
If you have been mis-sold a financial product
- Step 1 – Gather all the information you need. You do not have to find a concrete test, but you do need to explain your problem. …
- Step 2 – Complaining to your provider or adviser. …
- Step 3 – Ask an ombudsman service to investigate.
How long do companies have to respond to a complaint?
Acknowledgment of your complaint Unless they 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?
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 person appointed must be carrying out the FCA’s governance function within the company or the same thing. group like the company.