If you have taken out a mortgage in the UK after the 1st July 1995 you may be due compensation. Financial Claims Helpline specialise in mortgage misselling claims and can help you get any potential compensation you may be entitled to.
How to work out if you have been mis-sold a mortgage and how to claim compensation.
Have you had a mortgage that you feel you may have been mis-sold?
Have you had an interest only mortgage with no means of paying off the outstanding balance?
Does your mortgage continue into your retirement?
Have you consolidated debts, credit cards or loans into your mortgage?
Do you think your mortgage rate might have been miscalculated?
If the answer is to any of these questions is 'YES' then we may be able to help.
- The law states that brokers and advisors must ensure that mortgages are affordable throughout the entire mortgage term. If it can be established that your mortgage was missold, then you may be able to claim for losses from the day your mortgage began.
- Your broker or advisor should have explained Interest Only mortgages vs Capital Repayment mortgages, and should have ensured you had an adequate repayment method in place. This type of mortgage seems cheaper in the short-term but in the long-term it is significantly more expensive.
- You were advised to take a mortgage product that was not suitable for your needs
- You were advised to take one product over another on the basis that the broker would receive a larger commission
- You were advised to consolidate debts, loans or credit cards by re-mortgaging
- You reach retirement age before your mortgage ends
- The broker did not submit the correct information on the mortgage application in order to obtain a higher mortgage offer
- You were not told about the commission your mortgage advisor would receive from the mortgage lender
- You were advised to switch mortgage lenders without being told about any fees and penalties that may have been incurred
- Adequate checks were not carried out by the lender or broker to ensure a suitable repayment method was in place
When a mortgage offer is made to a potential borrower this offer will specify the interest rate that applies to that mortgage. The borrower will accept this offer expecting to be charged the interest rate specified in the mortgage offer. Given the complexities of calculating interest the borrower puts their trust in the lender that the payments will be calculated correctly and in accordance with the agreement.
Unfortunately, many people have made over-payments on their mortgage due to miscalculations on the part of their mortgage lender. Many lenders have mis-allocated payments and applied incorrect interest rates. This has resulted in some borrowers being overcharged thousands of pounds which they may be entitled to claim compensation for.
- You took out a mortgage after the 1st July 1995
- You are likely to have been overcharged if:
- You have ever fallen into arrears with your mortgage
- You have been charged excessive administration fees or arrears fees
- The lender paid your broker or advisor a fee that was added to the mortgage
- You are a ‘mortgage prisoner’ and trapped in your current mortgage and unable to switch to a new one
We have listed the most commonly asked questions about making a compensation claim for a missold mortgage
If you think you answer YES to any of the above points then you may have a claim for compensation of a missold mortgage. Overall if you have an Interest Only, Self Cert or Fast Track mortgage then you may have a claim. Furthermore if you have remortgaged to 'Consolidate Your Debts' then you may also have a claim.
To claim compensation for a missold mortgage simply complete our online claim below