Mis sold mortgages are a more common problem than you might imagine. Many people were either sold inappropriate mortgage products or were not given reliable information to help them make the right decision over which mortgage to opt for. In either case, this has led to mis sold mortgages and many borrowers have either successfully claimed or are looking to claim compensation. In some cases this can total £10,000 or more.
Endowment mortgages were frequently mis sold. This product was effectively a combination of an interest only mortgage and an endowment policy. The borrower paid off accrued interest while investing the equivalent of the capital repayment in an endowment. The borrower was told that they would make up enough money to repay the capital and would have a decent lump sum of cash left over afterwards too.
The endowment mortgage was mis sold if the borrower was not informed that the endowment could, in fact, leave a shortfall that would need to be made up when the mortgage came to term. Unfortunately, many people were caught in this way and once the term of their mortgage was up they were left with less money than was needed in order to make the final mortgage settlement. However, this is only one way in which mortgages have been mis sold.
If you were encouraged by a broker to inflate your earnings so that you would be able to borrow more capital then this is a case of mis selling mortgages. It will have led to higher monthly repayments than you could typically afford and if this is the case then it could have led to you being unable to make payments on a long term basis.
A broker should also discuss your personal circumstances to determine how much you can reasonably afford to repay on a monthly basis. This doesn’t just mean working out how much you earn and spend currently but should include any future plans you had at the time. If you were planning a career change or another baby, for example, this could have impacted your personal financial circumstances and had a negative impact on your repayment ability.
You can claim compensation for mis sold mortgages. Visit GladstoneBrookes.co.uk for more guidance and to discuss your case with a skilled and trained professional claims handler. You could receive £1,000s in compensation.