Mis-sold mortgages are more common than you think, with the FCA estimating that up to 2.5 million mortgages may have been mis-sold over the years. That’s why it’s imperative to know what constitutes mortgage mis-selling. If you have reason to believe your mortgage was mis-sold to you, keep on reading for our easy guide.
Interest Only Mortgages
The mortgage advisor should have made you aware of how you would repay your mortgage when it finished if you were only paying the interest on your mortgage each month. If this wasn’t discussed with you, or you weren’t provided with examples of costs, then this would be a classic example of mis-selling.
Many individuals are advised to take out an investment designed to pay off their mortgage when it finished. However, they later discover that they are not being paid out enough. If this sounds like something you are experiencing, it could be a mis-sold mortgage endowment.
Household Budget Analysis
If you were asked to complete a household budget analysis, were you asked what your monthly outgoings were or how much your monthly income was? Your advisor should work out with you your disposable income to create a feasible repayment amount. If this did not happen, you could have unintentionally committed yourself to a mortgage that you could not afford.
Remortgaging is a common solution for clearing debts. Were you advised that it would be cheaper for you to put all your loans, credit cards and finance onto your mortgage? If this did not happen, you could actually be exchanging short term debts for a long term debt by adding it to your mortgage. Your advisor could have mis-sold your mortgage if they did not explain that although you would be lowering your monthly outgoings initially, you may be lengthening the term of your debt and increasing the amount of interest due to be paid.
If you are in a position where you cannot afford your mortgage or you feel your mortgage was not right for you, then it is worth speaking to our team of experts at Enjay Claims. Brokers must adhere to the Financial Conduct Authority (FCA) rules. If they don’t, you are entitled to compensation – not only on what you have lost but also on what you would have stood to lose. We only submit a complaint if we feel there is a complaint to answer, and we work with you to get fair results for your mis-sold mortgage. Get in touch with us on 01708 854200 or email us at email@example.com to see if you have grounds for a mis-sold mortgage claim.
Please note you can only make a complaint for mis-selling if you used a broker to source your mortgage.