From the 31st October 2004 the Financial Services Authority (FSA) has regulated mortgage advice. The rulebook which it uses to monitor the industry called the Mortgage Conduct of Business (MCOB requires the advisor selling the mortgage to follow strict guidelines to protect the customer. One of the key areas is that the client is suitable for the product and that the borrower can afford the mortgage and the mortgage offered is the most suitable for the client’s needs.
If it is found that the mortgage does not meet these requirements then under the Financial Services Act 2000 the resultant loss can be claimed as damages. The MCOB rules were established to protect clients and as such any consumer is able to take action if they believe that they have been treated unfairly.
Bad financial advice can have serious repercussions resulting in financial difficulties that in the worse instances can lead to the loss of a consumer’s home.
If you have repaid your mortgage you can still look at a claim with the advisor or lender if the mortgage was mis sold leading to you suffering financial loss.
How do I know if my Mortgage was Mis sold?
The best way to think about this question is to ask yourself. If you knew what you know now would you have still taken the mortgage and if not why not?
A mis sold mortgage.
Advised to take a fixed rate or discounted mortgage and told that at the end of the term for the rate a consumer can just re mortgage.
A mortgage taken which will take the consumer into retirement without factoring income.
A re mortgage to consolidate debts without an explanation that the debts will be over an extended period of time.
Sold an interest only mortgage to keep expenditure down when capital and repayment was appropriate.
Wrongly recommended a subprime mortgage incurring greater fees and interest where a borrower could have had a regular product.
Advised to proceed on self-certificated basis even if proof of income could be provided.
Encouraged by the advisor to manipulate income.
Your ability to afford the mortgage was not properly assessed and your home was reposed.
You switched or re mortgaged a number of times at the same property.
You had to pay early repayment charges to switch lenders.
You paid high early repayment charges
You paid high arrangement or borrowing fees.
The mortgages affordability was not assessed properly when vulnerable or low income.
Advised to switch lenders without being told about penalties or fees.
If you have repaid your mortgage you can still look at a claim with the advisor or lender if the mortgage was mis sold leading to you suffering financial loss.
Take the Mis sold Mortgage Test?
If any of the following apply to you please contact us today.
Did you re mortgage to consolidate debts?
Did you re mortgage from a high street lender to a subprime lender?
Was it suggested that you choose a lender because of their speed of decision?
Was your income correctly used when assessing affordability?
Did you have a self-certified mortgage when you could obtain a high street mortgage?
If you had an interest only mortgage was it explained that you would need a repayment vehicle at the end of the mortgage term?
If you have repaid your mortgage you can still look at a claim with the advisor or lender if the mortgage was mis sold leading to you suffering financial loss.
If you would like us to look at your current or past mortgages ( from 2004 onwards) as you feel that they may have been mis sold please either email your name and telephone number to info@bankcomplaints.co.uk or telephone 01752 840623.