In 2008, the FSA (Financial Services Authority) announced that they were concerned about the growing problem of mortgage mis-selling and that they were launching an investigation.
The FSA investigation has led to firms and brokers being fined for failing to give suitable advice and for not explaining all the different deals and repayment schemes available. With the FSA taking this problem seriously and following their principal of “treating customers fairly”, you may have grounds for redress and you may be able to make a claim for compensationagainst the bank, building society or financial advisor/broker.
Although this is not an exhaustive list, here are some examples where we may be able to help you with a mis-sold mortgage claim:-
The mortgage runs past retirement age
Your situation was wrongly assessed
You were advised to switch to another lender without being told of all the fees and penalty charges that would actually make you worse off.
The commission paid to the broker by the lender was not explained to you.
You were advised to take out a self-certification (self-cert) mortgage even though you are not self-employed, so that you could borrow more.
Your mortgage is an endowment mortgage and you were not warned of the risks involved, how your premiums would be invested and advised that it was a long-term investment vehicle.
You are now in negative equity
If you feel that you have been mis-sold a mortgage because you received inadequate or incorrect advice or were allowed to borrow more money than you were able to repay, then you should seek advice on making a claim.