Have You Been Missold a Mortgage? You Could Claim Compensation

terrace houses for sale mortgage

Taking on a mortgage is a huge financial commitment not only at the time you first take it on but for the duration of its term, which could be 25 years or more depending on your agreement.  If your lender or broker didn’t consider your ability to repay your mortgage for the entire term of the loan, then the mortgage may have been missold.  If you are concerned about how your mortgage application was processed this post might help you consider whether you can make a claim for compensation. This is why you should ensure you get the right mortgage with a company that works for you. A good example is Mortgage brokers North York who have good reviews from real customers.

I’m A First Time Buyer, Could I Be Due Mortgage Compensation?

It is possible that you cold be entitled to claim compensation for your mortgage being mis sold, but the important thing to consider is whether you were treated fairly by your broker or lender.  Mortgage compensation claims can only be made if you purchased your mortgage after 31st October 2004. This is why you should know your rights, by purchasing a first time home buyer guide, you’ll be able to see other experiences and therefore, you should be in the right position in case you ever needed to claim.

I Have An Interest Only Mortgage, Can I Make a Claim?

You may be entitled to make a claim for compensation if you were sold an interest only mortgage, but you will need to consider if your lender or broker discussed with you the difference between this mortgage and a capital repayment mortgage.  Did they also take into account your potential earnings for the full term of the mortgage and how you would repay the outstanding capital at the end.

I Used My Mortgage For Debt Consolidation

It is incredibly common for home owners to consolidate unsecured loans and clear any debts they may have when they take out a mortgage.  If you used a mortgage for debt consolidation did your lender or broker discuss with you the costs of consolidating these debts with your mortgage against continuing your regular repayments.  If you were not made aware of the costs of adding the unsecured loans to your mortgage you maybe entitled to claim compensation.

I Was Encouraged To Take Out A Self Cert Mortgage

Self certification mortgages were sold to customers without them having to prove their income to the broker or lender.  They were popular with some brokers because they attracted a high commission.  Self cert mortgages were banned by the financial regulator in 2014.  If you were not made fully aware of the financial risks or other options available to you might be able to make a claim against your mortgage provider for compensation.

Can I Get Help With Claiming Compensation for my Mortgage?

You might have decided from what you have read here that you could be entitled to make a claim for being mis-sold your mortgage.   If you are concerned that your broker or lender didn’t fully consider your financial circumstances, fully discuss the options you had available to you or sold you an inappropriate mortgage then you can talk to an independent advisor about any mortgage claims you are considering making.

Have you made a claim for being missold your mortgage? My readers would really value hearing how your compensation claim went or if you think there is anything they should bear in mind.  Please do leave us a comment below or share this post with your friends of followers if you think they would find it helpful.

Collaborative post 

Zena Goldman

Zena Goldman is a UK based travel, family & lifestyle blogger who left her 9-5 job behind in the not-for-profit sector to follow her creative dreams and enjoy a more flexible family life. She began writing Zena’s Suitcase in 2011 and shares the holidays and adventures she goes on with (and without) her 2 young daughters. She wishes her son would join them more often but he’s carving out his own dreams now and enjoying university life. Since beginning Zena’s Suitcase she has worked with a number of brands and also has a regular monthly feature in the ASDA Good Living Magazine feature, ‘Ask The Expert’ where she shares helpful parenting tips. In 2018 she was also a finalist in the prestigious BIBs Awards for Social Media.

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13 Discussion to this post

  1. Sonia Cave says:

    This is such a mine field and when you seek advice from the professionals about this sort of thing you are trusting them to do what is right. We have been lucky with all our advice, but we know others who were not

  2. Kate says:

    This is all such good advice. Taking out a mortgage is such a huge financial move that you really do put your trust in those selling it to you – and it is scary to think they might not have your best financial interest at heart.

  3. Cathy Glynn says:

    I can imagine that lots of people get talked in to something that is not really suitable. Some great tips x

  4. Jon says:

    Like Cathy I can imagine a lot of people are going to end up wanting to look into this!!

  5. Rachel says:

    I don’t have a mortgage yet but hope to get one in the next few years so this was still an interesting read. I’m sure it will be useful to many.

  6. Talya says:

    I had no idea you could even be missold a mortgage – how naive of me! These are great tips for someone that finds themselves in such a predicament.

  7. Wow this is a new one one me, our mortgage term was way to long for sure, as we could have paid off sooner, but broker was not interested x

  8. What a useful post. Most people have no clue when it comes to their mortgage information. I hope this post goes viral so all affected can read it. Many shady deals around these days.

  9. Anosa says:

    Gosh, I am still working through the mortgage process right now and choosing the right one for me and its so overwhelming, thanks for this post
    Anosa recently posted…How-to prepare your home for Spring SeasonMy Profile

  10. This is a new one on me. I never knew mortgages could be mis-sold. I wouldn’t have a clue if our previous mortgages were mis-sold to us but it’s something to bear in mind when we go for our next one.

  11. the whole mortgage thing scares me to death! I know soon I’ll have to take one. Thanks god for bloggers who share their knowledge and experience online <3

  12. Nadia says:

    Such an informative post. Definitely a lot of things to take into consideration. My partner has a mortgage so will make him read this.

  13. Stephanie says:

    I never realised you could do, we trust the people who we seek advice from don’t we.
    Stephanie recently posted…A Visit To Showcase Cinemas Southampton To See Sherlock GnomesMy Profile

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