Mis-sold Mortgages From Sub-Prime Mortgage Lenders

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House loans sold to homeowners through a mortgage lender or broker who offered incorrect advice or mis-sold mortgage can complain for obtaining mis-sold mortgages and can make a claim for that inconveniences.  Usually, mis-sold mortgages were taken out with sub prime or specialist mortgage lenders.  During the 1990’s the homeowners which had a bad credit score ratings are not capable to receive traditional lending from banks or building societies.  This chance was grabbed by new specialist lenders and entered the market to utilize the need and these specialist lenders were called sub prime mortgage lenders.

Sub prime mortgage lenders had been keen to distribute their items by way of mortgage packagers so broker¡?s commission for mortgage competitions became very generous.  Same as the other specialist lenders, this sector became more defined.  Mortgage brokers had been actively encouraged to introduce mortgage applications to such lenders, which created an increase in mortgage packagers and these specialist lenders contributed to the 362 billion pounds gross mortgage loan lending in 2007.

In 200, the Financial Services and Markets Act was enforced upon the Financial Services Authority (FSA) that is incorporated an obligation to offer an effective regulatory regime which would provide confidence and help the public understand all aspects of financial services.  On October 31, 2004, regulations was extended to the mortgage industry and so they called it Mortgage Conduct of Business (MCOB) Rules.  MCOB relates to all firms which carry out controlled mortgage business.  This was broken down into various parts just like business loan secured on a residential property or equity release schemes.

Mortgage lenders and agents were created to conscious of the guidelines of the new rules in mortgage lending and were instructed to provide comprehensive documentation relating to the mortgage sale and advice given.  The MCOB requires a mortgage lender and mortgage broker to manage clients fairly and mis-sold mortgages may result in any violation of such rules.

You could be among the numerous victims of mis-sold mortgages if you were not provided with the proper information and certification by the mortgage broker and lender and you also were not informed regarding the exact fees and expenses as well.  You also can have mis-sold mortgages if you were encouraged to self certify your mortgage loan even though you were employed when you took out the mortgage loan.

Mis-sold mortgages may also happen when you were encouraged to take sub prime mortgage if you are qualified for a lower rate.  If you were encouraged to borrow greater than what you originally want from a mortgage lender will also be a sign of mis-sold mortgages practice.

These are only some of the reasons why there are lots of mis-sold mortgages complaints.  If you think any of these things took place to you after you applied for a mortgage loan, there’s a fantastic chance that you’ve been mis-sold a mortgage.

 

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