Taking on a mortgage is probably the single biggest financial decision that most people will make in their lives. The consequences of that decision can last a lifetime. This is recognised by the Financial Conduct Authority (the body responsible for policing mortgage providers and brokers) and it has introduced detailed rules over the years to protect consumers. Unfortunately, not all mortgage advisors will follow the rules and provide proper advice.
The consequences for those who have been let down by the advice that they have received is all too often difficulty or an inability to pay the mortgage and, in extreme cases, the loss of their homes.
It is often difficult to tell if you have been misadvised (or mis-sold) on a mortgage product, but here are some classic tell-tale signs:
- Your advisor failed to ask enough questions to ascertain your individual circumstances and ability to afford the mortgage, present the options available, make a recommendation that suited you or provide a “mortgage suitability statement”.
- Your advisor did not ask you to complete a household budget analysis to work out how much you could afford.
- You were advised to take on an interest only mortgage without sufficient consideration being given to how payment would be made at the end of the term.
- You were encouraged to take out an endowment policy which later turned out to be insufficient to pay off your mortgage.
- You were looking to consolidate your debts and advised that it would be cheaper to put all your loans and credit cards onto your mortgage without any explanation about the fact that you were exchanging a short term debt for a long term debt and thereby increasing the total interest that you would pay.
- Where you were encouraged to take out a “self-cert” or “fast track” mortgage where you didn’t need to prove your income.
- Where your mortgage runs past your retirement age.
- Where you paid unreasonably high broker fees, you were not made aware of these fees and where they were added to your mortgage without you knowing.
- Where you were encouraged to re-mortgage.
If you think that you might have been mis-sold a mortgage and have financially lost out as a result of that advice that you have received then you may be entitled to compensation.
You can contact us using the details above and we will be happy to provide an initial consultation which is free of charge and you will be under no obligation to carry on with us. If after speaking to us you decide to pursue a claim then we will usually be able to offer a range of funding options, including “no win no fee” arrangements.