How do I know if I have been mis-sold a mortgage?

In recent years mortgage regulators, the Financial Conduct Authority, have received an influx of complaints regarding the flawed advice of mortgage advisors and lenders. As a result of this, many people have experienced difficulties regarding their finances, which are most likely a result of mortgage mis-selling.

If you are reading this then you are probably wondering what constitutes a mis-sold mortgage.

You may have been a victim of mortgage mis-selling if you have experienced the following:

1: You borrowed without proof of income

You may have been advised to take out a self-certification mortgage, which does not require proof of income, regardless of whether you could provide it or not.

Some mortgage advisors will push a self-certification mortgage, as it is a fast-track application process allowing them to be paid as soon as possible.

A self-certification mortgage may have a quicker turn around, but they also have significantly high interests and reversion rates, resulting in the borrower having a larger amount of debt.

If you could clearly provide evidence of income and were still offered a self-certification mortgage, then you were ill-advised and possibly mis-sold on your mortgage deal.

2: You are still paying off your mortgage after retirement

There are several people in the UK that are still paying off their mortgage after they retire. In some cases, homeowners were not informed that their mortgage would extend to post-retirement.

In accordance with mortgage regulations, mortgage advisors or lenders must inform mortgagors when their repayment plan ends, which means if you were not informed then you have most probably been mis-sold.

3: You are facing financial difficulty after re-mortgaging

You may have been advised to switch lenders by re-mortgaging in order to clear your debts – this may have seemed like the best option at the time as it allowed you to stay in the same house. However, this could result in long-term debt and added interest which you may not be able to afford.

Some mortgage brokers will recommend re-mortgaging as a short-term solution, as monthly outgoings will be a lot lower. Although, they must inform you of the long-term debt and, if possible, implement a repayment plan to help you pay off the debts.

4: Your individual financial needs were not considered

When it comes to taking out a mortgage everyone is different and therefore everybody should receive advice from their mortgage broker, that meets their individual needs.

One of the most important factors mortgage brokers must consider when giving advice is affordability. They must assess the client’s financial situation in order to establish the type of mortgage they require.

Unfortunately, there have been may instances in which an individual is provided with a mortgage they are unable to afford. This results in financial difficulty, in addition to their original debt.

As a result of the additional debt, some homeowners may face an array of problems, including arrears or repossession. These can be resolved if you are successful with a mis-sold mortgage compensation claim.

How Mis-sold Mortgage Experts can help

If any of the above circumstances apply to you, then you may be entitled to mis-sold mortgage compensation.

Mis-sold mortgage compensation is calculated by comparing your current financial situation to your situation before the mortgage mis-selling occurred. This ensures that you receive the correct compensation by allowing you to return to your original financial condition.

Contact our mis-sold mortgage expert solicitors today to discuss your mis-sold mortgage compensation via our website, email or by call us on 0800 756 3986.

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