Do you think you could have been mis-sold your mortgage?
You could be entitled to claim compensation
When choosing a firm that can help you claim compensation for your mis sold mortgage, make sure that the company in question are following the protocol set by the Financial Services Authority (FSA).
In the UK alone, an average of 1.9 million people are piloted to try interest only mortgages. If you purchased your mortgage after the 31st of October 2014, whether it was from a lender or through a broker, there could be a definite plausibility that you were mis sold your mortgage.
On the day of purchasing your mortgage, the lender should have made sufficient case-studies to be certain that you were able to afford your mortgage, not only at that moment but also throughout the life span of the mortgage, even if that meant filtering into your retirement age.
Anyone may be able to claim compensation for their losses from when they agreed to their mortgage if it can be proven that they were mis sold at the time.
You may be asking yourself how a mortgage can be mis sold, in fact there are many ways in which this can happen. Always remember, the person selling a mortgage, is a salesman at the end of the day and they only earn from selling the most expensive products.
If you were sold:
- An interest only mortgage – it could have made a lot of sense at the time as this is generally the cheapest option, short term. Long term however, you will probably end up paying quite a significant amount more, which should have been explained to you on the day of purchase. You should have also been made aware that you may have to swap your mortgage to a Capital repayment mortgage at some point through your life, and you should have been given examples between an Interest only mortgage and a Capital Repayment mortgage.
The difference between the above is; when you take out an interest only mortgage, this means that you are only paying interest on the capital that you have borrowed. This is great for most people as per above, this means lower monthly payments. The only problem with this is that when your mortgage term is up, you will still owe the full amount of the capital.
- A right to buy mortgage – this mortgage payment will usually be a lot higher than your rent has been until the moment of purchase. At this point you would also become responsible for the maintenance costs and have a big chance of losing your housing benefits.
- Self-Certification mortgage – you would have been advised to take out a “fast track” mortgage. Financially, this is never the best option. If the broker asked you to self-certify, you could be entitled to compensation as this should have always been the last option offered.
When Self Certified mortgages were being issued, they were generally for the self-employed or those with variable and unpredictable monthly wage packets. This system was abused for the most part and ended with many unaffordable loans being granted inappropriately. This is an option that is no longer offered.
- Debt Consolidation – Were you offered to move your outstanding loans and credit card debts onto your mortgage? Although this seems like a good idea, having all your finances grouped together to come out as a once monthly debit which would possibly be lower than the individual payments, this option extends your debt for a longer period, which means that you would be paying more interest in the long run.
- Your mortgage going past retirement age – the advice that you were given on the day of signing your mortgage should have been based on the full term of it, not just what you could afford at that time. You may be able to claim if you were not properly advised on ensuring that you could afford your mortgage after retirement age, due to lower income.
- Subprime mortgage – generally, this option would have been offered to you if you had a poor credit rating or low credit scores. It normally costs more than the afore mentioned mortgages in both the fees and the interest charges. If you have never had a poor credit rating or low credit scores, then you could be entitled to claiming compensation.
After reading the above, you may be wondering what information you need to find out if you were mis sold your mortgage.
There are only 3 things that you would need to have to hand;
- Your mortgage account number
- The name of your mortgage provider
- The date your mortgaged commenced
If you no longer own the property that your mortgage is attached too, if the advisors are not trading any more and even if you no longer live with the person who you took the mortgage out with, you will still have a good chance in claiming compensation.
Why not speak to our Claim Handlers at Lansdown Financial and see if we can help you claim back some of your mis sold money.
Contact us by visiting our website at www.lansdownfinancial.co.uk or call us on 01483 478251.