In 2014 new rules were introduced to clamp down on the mortgage market and clear up the mess that mis-selling had left. We are now a year further on from these changes and yet the City Watchdog says that in almost 40% of the cases it reviewed there was confusion as to exactly why the lender had recommended a loan to the consumer.
Although the new rules were supposed to maintain a high standard of industry practice amongst mortgage advisors, the Financial Conduct Authority (FCA) has found that an disproportionate percentage were still failing to take the steps necessary to obtain a full understanding of a customer’s needs before making a recommendation. The measures were introduced to address this, and cut down on the mis-selling that was crippling British families.
Finding a mortgage that is suitable to a customer’s needs should be at the forefront of an advisor’s mind when they are presenting their advice. It was a mixture of mystery shopping, file reviews and on-site visits that initially drew the FCA’s attention to the lack of suitability in the mortgages being taken out and the flagrant disregard for the rules that were introduced.
A mortgage is not something to be entered into lightly. It is a huge investment and a significant life choice. Suitable advice is the least you should expect when looking to undertake a mortgage, and only around 60% of people have been able to say that their advice was accurate. Consumers deserve a good outcome when working with a broker, and when things go wrong it is important to understand why and whether you have the basis for a claim against mis-selling.
Whilst the mortgage industry is supposedly still ‘getting to grips’ with the changes and the processes needed to ensure accurate and suitable advice is given, consumers are suffering. There are a number of issues still that the FCA has agreed to help lenders iron out. Without a culture that supports customers and their requirements there will always be issues with the system that lenders must address though.
At Enjay Claims we work closely with consumers who have taken the plunge, expecting to receive a suitable mortgage and a good outcome from their desire to buy a home. If the City Watchdog’s findings are correct, then two fifths of the people who they reviewed are likely to have a claim against those lenders, something that we are able to pursue on your behalf. It is important that lenders understand the damage that can be done to individuals who have invested so much yet received so little. We are here to help them adhere to the rules that were introduced in 2014 and help consumers get a fairer deal in the process.
Call us on Freephone 0800 612 7958 or email firstname.lastname@example.org today to discuss your claim and find out exactly how much compensation you could be entitled to.