The Financial Conduct Authority (FCA) — the regulatory body for lenders and mortgage advisors — sets out the rules associated with mortgage advice given to customers. However, despite the FCA’s guidelines, financial advisors and lenders don’t always offer the right advice, which results in some customers being unable to keep up with mortgage repayments. 

What Is a Mis-Sold Mortgage?

Before you learn what to do if you’re a victim of mis-selling, let’s define what exactly a mis-sold mortgage is. 

If your mortgage provider or lender failed to do any of the following, they may be guilty of subverting the FCA’s guidelines:

  • Thoroughly evaluated your circumstance
  • Clearly outlined all of your available options
  • Provided a recommendation that suited your personal situation

Examples of Mortgage Mis-Selling

We’ve outlined several common scenarios when a mortgage was mis-sold. If any of these sound familiar, you may have been mis-sold a mortgage: 

  • Interest-Only Monthly Payments

    If you were paying only monthly interest on a mortgage and your adviser failed to inform you how to repay the mortgage, you may be entitled to make a claim. If the lender or broker did not outline the costs of a Capital and Repayment mortgage in comparison to the lower costs of an interest-only mortgage, it’s highly likely you were a victim of mis-selling.

  • Debt Clearance Remortgaging 

Did your lender tell you that it might be better to consolidate all of your debts into your mortgage? Although you may have been told that you might initially experience a reduction in monthly outgoings, were you informed that the length of your interest might increase?

If not, a claims company can help you seek compensation for this such “sleight” of mortgage selling. 

  •  Analysis of Household Finances

You may have unknowingly committed to a mortgage that you’re finding hard to repay, particularly if your lender or adviser failed to carry out a household analysis — an analysis of your monthly income and expenditure. 

Again, this is a prime example of mortgage mis-selling. We show you what you should do if you think were mis-sold a mortgage below. 

If your adviser told you to take out an investment to pay off your mortgage, but the payment was ultimately insufficient, consider yourself mis-sold.

  • Fast-Track Mortgage Policy without Evidence

If you were encouraged to take out a “Self Cert” or “Fast-Track” mortgage without being asked for evidence of your income, you may have been mis-sold your mortgage! Brokers earned high commissions from many mortgage products, so, like PPI — the biggest financial scandal in recent years — they were sold prevalently.

  • Mortgage Repayments after Retirement 

You could be a victim of a mis-sold mortgage if your adviser didn’t take into account your ability to keep up with repayments after you retire. 

Did the adviser discuss how you could repay the mortgage for a specific number of years after your retirement? If not, you could be entitled to make a claim. 

  • Unreasonable Broker Fees 

You may be entitled to compensation for a mis-sold policy if broker fees were “discreetly” added to your mortgage or were unreasonably high. If you weren’t told about these fees, you have a strong case of being a victim of a mis-sold mortgage!

What Can You Do if You Were Mis-Sold a Mortgage?

It can be quite daunting to discover you’re a victim of a mis-sold mortgage. Whether you know this as a matter of fact or not, you should seek the services of a claims management company to help you learn the extent of your policy mistreatment. A specialist claims management company or legal advisor will thoroughly investigate your claim, but make sure to provide as much detail as possible about how you think you’ve been mis-sold, including how your mortgage provider or lender failed to discuss vital information or provide you with the required documents.

When considering a claims company to work with, it’s important to ensure they’re a credible business capable of processing your claim efficiently — approach those that use a powerful claims management software and have trusted and successful track records. Once you have evidence of being a victim of mortgage mis-selling, you can easily make a claim and retrieve what’s rightfully yours!

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