Mis Sold Interest Only Mortgage Claims
Feel you were mis-sold an intrest only mortgage?
See If Your Eligable To Make A Claim
Interest only mortgages are designed for people who have a large salary or have a portfolio of successful investments if they needed to pay it off, if your not one of these people an interest only mortgage could be one of the worst moves for you to make.
To make things simple we will look at the two main mortgages repayment and interest only. Repayment is where you pay x amount each month with some of that covering interest and the rest going off what you borrowed bringing down your mortgage balance each month.
An interest only mortgage is where you simply only pay the interest on the mortgage each month and nothing of the actual mortgage balance, so unless you come into a large lump sum from a family member or win on a scratchcard, you will never own more equity in your house than the day you started.
So you could be paying your mortgage every month for years and not even see a penny come of the actual outstanding balance.
If you feel like this situation sounds familiar and you feel you was advised into a interest only mortgage and it wasn't right for you, you could be eligible to make a claim.
Try our free no obligation checking questionnaire to see if you are eligible to make a claim.
Your mortgage advisor or mortgage company has a protocol to carry out before they can provide you with any advice including important checks before they can advise you enter an interest-only mortgage.
Intrest only mortgages only work for people who have are earning large sums of money and can afford to save up x amount, have investments or assets to be able to pay of the the mortgage at the end of the term, its your advisors responsibility to check that you have the ability to do this, if they haven't then your mortgage may have been mis-sold to you. Which means that mis-selling of an interest-only mortgage is connected to affordability and suitability, including your mortgage advisor was providing you advice which was in your best interest by taking in consideration things such as your current and projected finances.
Some interest-only mortgages come with endowment policies too. Unsure whether you have a claim? ask yourself this simple question, when I took the mortgage out could of I paid the mortgage back and was it clear for the mortgage advisor to see I couldn't afford to pay it back?
Mis-sold Mortgage – Your Affordability
The main factor behind a mis-sold mortgage claim is affordability and you and your mortgage advisor should have discussed this in detail, if this wasn't covered then your mortgage is more likely to fail before it even began, meaning there is a high chance it was missold.
As with anything, there are consequences for not making your payments to a creditor and a mortgage is no different. Missed payments can cause
your credit rating to take a massive hit, have collection companies chasing your for owed money which can cause serve stress but worse of all the mortgage company can decide to repossess your house from you and selling it below market price to recover the money they have lost but leaving your with a mortgage shortfall.
If all your disposable income each month is going towards your mortgage repayment then this can lead to a poor quality of life as there won't be enough money left over to cover things like your food shopping, petrol etc.
Many people who have been lumped with a mortgage that isn’t affordable for them are stuck in a dilemma, do they carry on making there repayments to the mortgage sacrificing their way of living not being able to afford food, electric, heating etc or do they pay these and face the situation of losing their house and owing a mortgage shortfall.
Do you feel like you have found yourself in this situation?, complete the short form and one of the team will be in touch to discuss your options with you.
Mis Sold Mortgage Compensation - The Mortgage Advisor
Mortgage advisors work under the regulation of the FCA (financial conduct authority), the FCA understand when it comes to mortgages the key factor is affordability and they have provided clauses in the MCOB code for mortgage advisors to adhere to, you can see a copy of the MCOB code for mortgages here https://www.handbook.fca.org.uk/handbook/MCOB/11/6.html .
We have broken down the two main points in easy to understand language.
- Mortgage Advisors must check that your new mortgage repayment will be affordable and you will be able to maintain repayments, this is usually done via an income and expenditure form.
- Equity in the home should not be counted as part of your income and the assessment cant miss out anything, so they can manipulate the figures by putting in less in certain areas such as food etc to try and make it look like you can afford the repayments on paper.
Why Should You Do Your Mortgage Mis-Selling Claim With Us?
We hope this page has helped you with the understanding of interest only mortgage claims, we can provide you with more information by getting in touch with our team or completing the short form and we will call you back.
We work on a no win no fee basis* and we pride ourselves on delivering the highest levels of customer service.
We also deal with Mis Sold Sipp Claims.
Simply complete the short form and we will call you back and assess the information you provide to see if we think you have a valid claim, if its the case we believe you do we will then send out our paperwork for you to complete and return to us, we will then process your case keeping you up to date throughout the process.
See If Your Eligible To Make A Claim