Mis-sold Mortgages Due To Greed Lenders And Broker Agents

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As of 2008, the Financial Services Authority (FSA) showed their worry regarding the growing number of complaints of mis-sold mortgages all over the country.

The FSA already launched an exclusive investigation and found out the various reasons why a mortgage are being mis-sold to people.  The study demonstrated that the leading cause of mis-sold mortgages were the extremely greed of lenders wanting bigger profit from their sales, irresponsible mortgage advisors or agents who might have been in all awareness should advise the customer that the mortgage was not ideal for their needs and capabilities.

Mortgage lenders must be responsible enough to find out if the loan being given is sensible and affordable according to what the mortgage broker knew and submitted records with regards to the customer’s situation.  In all fairness to the lenders, the lenders shouldn’t falsify all of the documents and record of the clients because the mortgage loan will be based on the information on the documentation of the application.

Generally, lenders encouraged their customers to fill their income by saying they can get extra money which the borrowers can use on whatever they wished, just like purchasing new furniture for their new home or even purchasing a new car.  What the mortgage brokers do not notify the borrowers is that, the more money they borrow, the more commission the mortgage broker will receive from the lender.

The borrowers weren’t also made aware that their mortgage loan repayments will increase because they borrow more cash.  By doing this, the mortgage brokers are searching after their own interest and are in breach of the Mortgage Conduct of Business regulations, which states that the customers must be treated fairly and that they should only receive the most suitable advice when it comes to purchasing a home.

Mortgage brokers even encouraged their borrowers to take a payment protection insurance that the cost will be added on top of their mortgage loan.  This insurance policy is supposed to cover a part of borrower’s mortgage loan once he or she falls sick and cannot start working or in case of redundancy or loss employment.

This is a good idea to people people who are suitable for making a claim and if the borrower requests it.  However, there are some instances wherein the insurance policy was added on to the mortgage loan without the knowledge of the borrowers and it could add to their financial difficulties because it was known to be a very expensive insurance policy.  This insurance policy may add up to the claim of the homeowners of having mis-sold mortgages complaints.

If you feelthat are one of the victims who may have mis-sold mortgages,you need to locate all the paperwork with regard to sales and request for a review from your lender. You could possibly save your house if you do the correct actions as soon as possible.

 

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