Anyone who has had a mortgage after the 31st October 2004 should seriously read this blog post. As the misselling of mortgages is real, and if it happened to you, you could claim compensation. Just have a think about this. Did your lender or broker consider your ability to repay your mortgage for the entire term of the loan? Are you are concerned at all about how your mortgage application was processed? Then this post will help you consider whether you can make a claim for compensation.
I’m going to explain in more detail, and give you examples of why you might have been missold, but first let me share with you a website that makes this process super easy, taking all of the stress out of mortgage claims – Claim Your Mortgage. To start the process off and to find out if you are eligible, you need very little information, just answer a few questions on the website, and wait for them to contact you.
First up, I wanted to acknowledge that buying a house is a stressful time. Mortgages can seem very complicated, and there’s a lot to take in, new terms to understand, and decisions to make. Here are a few examples of ways in which a mortgage may have been missold to you :
Is your mortgage end date, post-retirement?
Many lenders will not arrange a mortgage post-retirement as income usually drops (considerably) and therefore it’s too risky. Does your mortgage run after your retirement? Were the implications of this explained to you, and will you have enough income to continue with mortgage repayments into retirement?
How about high broker fees?
Brokers do charge fees for making the mortgage arrangements on your behalf, were they unreasonably high? Or perhaps they were added to your mortgage without your knowledge? All of this should have been explained to you, including any commission that they received.
I have an interest only mortgage, can I make a claim?
Did you take out an interest only mortgage, but were not given advice, or an explanation of what this is? Interest only and capital repayment mortgage (the two main types of mortgage) are very different, and if you choose an interest only mortgage, though your mortgage payments will have been lower each month, you will still owe the outstanding balance at the end of the full term. Do you have provision for this? Was these differences explained to you?
I Used My Mortgage For Debt Consolidation!
If you visited a broker or lender wanting to add debts and loans onto your mortgage, so making one payment rather than several, to different lenders or organisations. Was the impact, in terms of the costs that adding unsecured loans to your mortgage explained to you?
Self Cert mortgage, was this sold to you?
Self certification is a mortgage which allows someone to get a mortgage loan but not have to prove their income to the broker or lender. They were banned by the financial regulator in 2014, however they were popular with some brokers because they attracted a higher commission. Were you made fully aware of the financial risks or if there were other options available?
Did you read any of the above and think – Yes, this is what happened to me!
Do not hesitate pop over to the Claim Your Mortgage site and start your claim.
Important to note : you can still claim if…
- The company or adviser who sold you the mortgage isn’t trading anymore: it may still be possible to make a claim against the Financial Services Compensation Scheme (FSCS).
- You don’t currently own the property that was mortgaged
- You had a joint account with someone you no longer live with, each person may be entitled to compensation.
Please do let me know if you have already made a claim, or if you plan to do so, I’d loe to hear from you what your experience is.