The challenge of mis-sold mortgages has affected a large number of homeowners and property owners in the United Kingdom.
The said mis-sold mortgages have been distributed by greedy and irresponsible lenders as well as their mortgage brokers.
Because of this, the Financial Services Authority (FSA) showed their concern with the increasing number of mis-sold mortgages cases and released set of rules to control mortgage selling and mortgage brokers and lenders. The FSA fined lots of financial institutions as well as the lenders and their brokers that violated the said regulation and for treating their customers unfairly.
There are many ways where in mis-sold mortgages practice can occur. For instance, a self employed applicant was advised for self certification application for their loan and this is might not be right. If the mortgage broker or lender manipulates their customers to declare an inflated monthly income, this can be classified as one of the mis-sold mortgages practice.
After giving all the personal data, broker must show a selection of products that suits the applicants circumstances and requires, unless it was clearly stated that one was offered. The correct information of the clients must be filed in a fact find document for future references of both parties. All the clients?documents needs to be retained by the mortgage broker, if not this is categorized as mis-sold mortgages practice and a obvious violation of Mortgage Conduct of Business Rules.
The most typical area of mis-sold mortgages is when you are asked to produce a self certification of your mortgage application but was unemployed during the period of the application. These are known as self certified mortgages and so are recently been banned by the FSA because a large amount of mortgage brokers and lenders took advantage of this type of mortgage application.
In case a client was offered interest only mortgage beyond their retirement age without exploring the future consequences of repayment, then this is another issue of mis-sold mortgages practice. The mortgage brokers and lenders need to look after the welfare of their clients and not after the commission (for the brokers) and profit (for the lender) that they will get from a mortgage product. They must make sure that the program and advice they give with their clients are the most appropriate for them and the most affordable for them to prevent mis-sold mortgages issues.
If you think maybe you have been one of several victims of mis-sold mortgages inside the uk, you may be able to claim back compensation for being treated unfairly by your mortgage lender or broker. You might be also to save your home from having taken back by your lender if you will do the correct move. You can take your complaint to the Financial Ombudsman Service or seek the help of a professional solicitor in this area.