In the UK, thousands of people have been sold a mortgage, which was not suitable for them. This has left some of them in dire straits. In many cases, people are losing their homes simply because they were advised to take out a mortgage they had no hope of paying back.
Most of the people who were given poor advice and mis-sold their mortgage fall into a few common categories. Many pensioners who were sold mortgages were sold the wrong one, or should not have been sold any kind of mortgage.
For decades, consumers have been sold interest only mortgages without the fact that they must pay off the capital at the end of the mortgage being properly explained. If you are sold this type of mortgage how you are going to pay off the capital must be discussed, if this did not happen you have almost definitely been mis-sold your mortgage.
Some people were persuaded to re-mortgage their home because of cold calling or were pressurised into buying a mortgage they did not really want. These people were also mis-sold their mortgages.
People with Poor Credit Ratings Mis-Sold Mortgages
The vast majority of the people who were mis-sold mortgages in the UK were sold financial products they could not afford to pay for in the long-term. Before selling a mortgage, a broker has to establish the client’s ability to pay back that mortgage. In many cases, poor credit histories were ignored.
The FSA considers ‘irresponsible lending’ to include lending money to people who clearly cannot afford to pay it back or are undergoing financial problems. They are increasingly taking action against those firms who do this.
Making a Claim for a Mis-Sold Mortgage
More and more people are realising that they find themselves in financial crisis because of the poor mortgage advice they were given. As a result, they are taking out claims against the companies who sold them these mortgages. However, doing so is not a simple process, so people are increasingly turning to specialist claim firms to help them with their claims. These firms have the necessary experience to make successful claims.