Have you been mis-sold a mortgage?
Has this caused you to lose money, perhaps many thousands of pounds?
If your building society, your bank or your independent financial adviser (IFA) mis-sold you a mortgage, you could be entitled to compensation.
We have got the answer. Call us today for a free initial chat to see if you have a claim.
How are Mortgages Mis-sold?
Negligent and even unscrupulous lenders and brokers in Britain have been responsible for mis-sold mortgages by the thousand, despite the strict guidelines of the Financial Conduct Authority (FCA, formerly the Financial Services Authority).
Among the seller, broker and IFA oversights consistently reported are:
- When FCA rules are breached.
- When other, better mortgages are available but have not been fully described to the customer.
- When commissions, penalties and charges haven’t been properly explained.
- When an interest-only mortgage, whose final outcome might involve a repayable capital sum, is not detailed.
- When a ‘Key Facts’ dossier is not provided – and the customer’s not put properly in the picture about every detail of a mortgage.
- When ‘fact-finding’ a customer’s financial circumstances is overlooked prior to the agreement, with income eventually proving insufficient to manage payments through to term.
- When a customer is advised to agree to a new loan and cancel an existing one, instead of extending it; in cases where such advice retains commission but leaves a customer liable for high penalties for early redemption, this is called churning – and it’s against FCA rules.
About the new Financial Conduct Authority (Formerly the Financial Services Authority)
Funded by the financial services industry and independent of government, the FCA oversees the provision to consumers of financial services, including mortgages and home loans.
The FCA also does its best to look after homeowners who find it hard to keep up with paying their mortgages, or they fall into arrears.
The Mortgage Market Review
Although the FSA has now given way to the FCA, rules published by the old body will still be valid from April 2014.
Prior to the financial crash and the credit crunch, banks and IFAs engaged in some dubious lending methods. The notion that property values would continue to rise meant far too many consumers taking out loans on homes they could ill-afford. Whilst lower interest rates have seen fewer falling into arrears, some borrowers have still suffered.
The Goal of the FCA’s New Guidelines
For the future the FCA wants to offset the likelihood of mis-selling mortgages. But its changes won’t stop those who can afford it get a home loan.
- Since lenders are obliged to confirm that their customers can afford the mortgage they’re seeking, all applicants must provide details of income.
- To prevent people arranging loans they can only afford during times of low interest rates, lenders will have to assess whether their customers will be able to afford future rises.
- For interest-only loans, mortgage lenders will have to confirm that their customers have a satisfactory plan for repayment at term.
Do you think you can claim?
Simpson Millar LLP has a thorough knowledge of the financial services industry and how it is regulated by law.