Have I Been A Victim Of Mortgage Mis Selling ?
Claims for mis sold and mis selling of mortgages is the largest claims producer after the accidental claims market. It is likely to do more damage to the building societies and the banks that knowingly mis sold them in the first place
If you do have a mortgage then the legislation provided by the FSA (Financial Service Authority) needs to be checked to ensure that you were not mis sold a mortgage on your property.
Initially insurance companies and banks used independent financial advisors for selling such products but now signs are really bad if you study the current information on this count. Several of these mortgages that were mis-sold by these financial advisors were actually responsible for the current economic crises. If you do hold such a mortgage, you would be entitled to make a claim for compensation from the bank or other financial institution that sold you the mortgage. You should try to explore this option as it can provide substantial financial benefits to you.
Tough guidelines for banks, building societies and financial organisations were stipulated in the Mortgage Code in 2001 issued by the FSA. Now it appears that many of these financial institutions had broken several rules and are liable for claims from the house owners who are becoming aware of the problems arising out of mis sold mortgages.
The FSA’s Mortgage Code was replaced by the Mortgage conduct of Business, to ensure the proper updates of the rules and it does offer better protection to people who were interested in purchasing a home by using a mortgage to complete the transaction.
To be safe, it will be worth checking with a solicitor to ascertain if the mortgage on your property was sold properly. Few other important questions that you should seek answers for are – are you in negative equity from taking out you current mortgage or have you been advised to switch to a new lender by a financial advisor?
Such mortgage claims can turn out to be very expensive for already beleaguered financial institutions and banks that are reeling after sub prime crises in past few years.
The main reason for the investigation of all these mis-sold mortgages is that the financial condition of mortgagee may have become worse after this transaction than before. An example being, old loans and credit cards, if payed off from proceeds of a new mortgage, then interest would still have to be payed off from these debts for may years. Instead it would have been better if he had paid the debt using his income because mortgage will accrue interest only for the exact value of property purchased by him.