Mis-sold Mortgages Issues Due To Different Reasons

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Getting a mortgage is the biggest financial decision in our life.  The least you should expect to get one of several victims of mis-sold mortgages and to be treated fairly.  However, several cases of mis-sold mortgages and have been misrepresented by a lot of mortgage brokers and lenders.  Homeowners who got a mortgage through a broker, sub prime lender or mortgage advisor and are experiencing financial hardships in paying out their mortgage might have mis-sold mortgages case.

Most people who’ve been mis-sold mortgages were asked to self certify or falsify their earnings in order to get their mortgage.  Some techniques of the mortgage lenders regularly remortgage their client with a low rate, and this can also be mis-sold mortgages cases.  If your mortgage broker charged you with a big finders fee, then there’s a great chance you are one of many victims of mis-sold mortgages.

Some of the mis-sold mortgages complaints were from group of people in whose mortgage repayments run past their retirement.  These will be the most common practices of unscrupulous mortgage lenders and brokers and these may be the reason why a lot of mis-sold mortgages complaints are being delivered to the Financial Ombudsman Service.

The Financial Services Authority has already reported its concern about the increasing number of mis-sold mortgages issues.  It has launched an investigation concerning mortgage mis-selling and found out various reasons on how and why a mortgage has been mis-sold to people.  It found out that the lenders weren’t responsible enough in giving mortgage loan to their clients.

Aside from that, it also found that the mortgage brokers failed to advise the customers that the product wasn’t appropriate to their needs and circumstances.  Some mortgage brokers also encouraged their clients to get a large amount of loan and misled them with advises but did not clarify that their mortgage loan repayments will automatically raise if their loan increases.

Mortgage brokers did it to be able to receive a higher percentage from a higher loan for their customers.  They weren’t looking after the interest of their customers but were more interested with the money that they can get from every single loan that they will get approved.

The FSA also found cases of mis-sold mortgages to individuals on benefits and are not able to work throughout the loan application.   Yet, they were given mortgages which they could never really afford.  The homeowners income is below their monthly expenditure and there is not way that they can pay their mortgages on time.  These are the most frequent reason why many people are complaining for mis-sold mortgages and are trying to claim compensation for being a victim of mis-selling mortgage exercise as well as to save their house from being repossessed by their loan company.

 

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