Reclaiming compensation for mis-sold mortgages
Victims of mis-sold mortgage should take heart from the fact that it’s possible to get compensation.
13:21 18 September 2013
Knowing more about mis-sold mortgages
Mortgage brokers and financial entities offering loans are under the regulation of FSA. This was done to protect the borrowers from unscrupulous brokers who are out to fleece their clients and get all the income or commissions they can get from their accounts.
By and large, brokers and lenders have been regulated by the FSA ruling. However, some refuse to abide and still continue to sell mortgages to clients who cannot afford repayments.
You can say that you have been mis-sold mortgages if:
- You have been given a fixed rate mortgage by your lender who did not spend any effort to see if you can deal with new monthly payments when the fixed rate period ends.
- You will be retired even before you finish paying the mortgage
- Your loan was used to consolidate shorter termed loans so that in effect, you end paying for 25 years for what could been paid off in 5 years.
- You acquired a Sub-Prime Mortgage despite your good credit rating. The sub-prime mortgage is usually offered to low income clients with poor credit rating. This is irregular because this type of mortgage carries a higher interest rate than the normal type of mortgage.
- You acquired an interest only mortgage without the benefit of explanation from your broker that interest only mortgage pays only the interest rate charges without much movement on the principal loan amount.
- You were persuaded to submit altered details to get your loan approved.
- Though you were employed at the time of the loan, they gave you a Self Certification Mortgage which should only be given to self-employed borrowers. This is considered a mis-sold because mortgage of this type is being levied higher interest rates because self-employed individuals.