Mortgage brokers and lenders are recently being asked questions about who they give mortgages to and the reasons behind distributing said mortgages. If any of the following sound familiar, you may be entitled to mis-sold mortgage compensation.
Advised to buy an Endowment Policy
If your mortgage broker or lender advised you to take an interest-only mortgage and an endowment policy to accompany it, you may be aware that the endowment you were advised to take does not cover the amount of capital you initially borrowed. If this is the case, you may have been mis-sold a mortgage.
Receiving an Interest-only mortgage
It is essential that if you were advised to get an interest-only mortgage that you were informed of the differences that they have when compared to a standard mortgage. Your mortgage broker should have also made you aware of how to repay your mortgage following the term of your loan. If given this advice, you should have also been made aware of several other differences including that you may have to switch to a repayment mortgage and not rely on increasing house prices. Were you advised to take an interest-only mortgage and not informed of any of the above? You have been mis-sold a mortgage.
Household Budget Analysis
It is the responsibility of your mortgage broker to analyse your household budget and if they didn’t, you may be entitled to mis-sold mortgage compensation. Did your advisor assess your monthly income and the remaining budget at the end of each month?
Did you re-mortgage to clear debts?
Advising you that the cheapest way to consolidate your debts by re-mortgaging is poor advice. It is of vital importance that your mortgage lender informed you that although you may have reduced monthly outgoings, the length of time you would be paying is extended, as well as the interest!
Paying Mortgage in Retirement
If you have taken a mortgage that will still require payment after your retirement age, you may be entitled to mis-sold mortgage compensation. Your mortgage broker should have discussed the possibility of paying while retired and the financial problems this may cause.
It is becoming increasingly common for mortgage brokers to advise taking a self-certified mortgage, or ‘fast-track’ mortgage. The reason behind this being that this form of mortgage paid an increased commission. If you were not asked to prove your income with payslips, then you may be entitled to mis-sold mortgage compensation!
Paying a fee to your broker
Do you recall paying a fee to your mortgage broker that seemed quite high at the time? If not, it may have been added to your mortgage without you knowing. if so, you will be paying interest on these fees each month. Make sure you check as you may have been mis-sold a mortgage.
After reading the examples of mis-sold mortgages mentioned in this blog, you may be left wondering if you are entitled to mis-sold mortgage compensation. Don’t hesitate to contact the Mis-Sold Mortgage Experts.