Mortgage Mis selling – Latest Mortgage Scandal
Companies that are engaged in claims management that have, more or less, generated billions of money out of PPI are carefully considering to mortgages because they believe that this is the next big misspelling scandal.
A lot of companies that are engaged in claims management are projected to release TV advertisements as well as web campaigns that have mortgage borrowers as their audience. It is said that the primary aim of these companies are those customers who have interest-only mortgages. Financial companies that offer various mortgages strongly suggest that this plain by claims management companies will not succeed.
Interest-only mortgages are loans where clients pay interest each month without paying the capital. More often than not, these borrowers have vehicles to pay off the entire mortgage when it expires.
The Mortgage Controversy
These kinds of mortgages are linked to controversies across the UK as it was shown that most of the borrowers do not stipulate the payment method for the capital. A few blames banks and other financial institutions for their failure to monitor their checklist. There is even a huge cloud over these mortgages at the moment as the FSA or Financial Services Authority is looking to penalize these mortgages.
However, that cloud has somehow been set aside as lenders today will still allow people to borrow money so long as they have a convincing repayment scheme.
The claims companies across the UK might be turning their attention to mortgages such as these but the main thing they are looking at is the huge possibility of mis selling of these loans. They will try to capitalize on such mistakes.
Jump on to what?
To date, the various claims companies are getting in a dog fight as they see the mis selling business as a factory for them to generate money. One company that did not want to disclose their name boasts that they will be looking to be at the top of the mis selling businesses before the month ends with their “effective” marketing plans. He even had a swipe on competitors stating that there were other claims companies that wanted to enter into the business without even having a clue as to what to do. Anyway, here are some instances that strongly points to the mis selling of a mortgage.
Mortgages are likely to be misssold if…
- Sub-prime loans – here a broker might immediately put a borrower on a sub-prime loan when he could have placed a borrower on other loans that have cheaper rates.
- Self-certification – self-certification is usually done by the applicant. Now if the applicant or borrower does not fit the boot set by the company, why then was the mortgage approved?
These may not be all the instances but they are definitely the most widely used out there. So if you think that your broker is doing something suspicious, make sure that you ask questions so that you can clear things up.