17/05/2010 by Bradders.

The wrong doings of many brokers over the last five years will soon become apparent as borrowers realise the have been missold mortgages. The FSA have been implementing regulations over the years to combat this bad practice but the full extent of the problem is likely to emerge as borrowers start struggling with repayments especially if interest rates start to rise.The bad practice amongst brokers is not a new issue and has been going on for some time.

A few years ago The Loan Company (trading as Greenhill Finance) was fined £31,500 for failing to make proper affordability checks on the sub-prime mortgages it was selling.Next Generation Mortgages was also fined £10,500 for failing to make proper assessments and failing to explain mortgage risks properly.But if one looks at those figures in another context it was worthwhile for the brokers to do this because at the time they could reasonably expect 0.5% to 2.5% commission for each mortgage they sold.The adverse credit mortgage market – the more common name for UK sub-prime mortgage products – offered higher commission rates because of the higher interest payments, and therefore profits, usually provided by these vehicles.

A quick bit of maths show a £200,000 sub prime mortgage was worth £1000 – £5000 commission, minimum, per sale.So the benefits of flouting FSA guidelines could easily have offset the risks of being caught.Even the worst sharks that were eventually closed down seemed to have got away with murder.

It was no surprise that the company directors of such establishments simply cashed in their profits and laughed all the way to the bank. This was in light of the fact that some consumers were misled or even had missold mortgages.However,help could be at hand for anyone who believes they may have been missold a mortgage. A mortgage audit can be used to prove if a missale has occurred and potential compensation can be awarded.

The good news is that even the firms that have gone to the wall compensation can be awarded through the Financial Services Compensation Scheme.www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

13/05/2010 by Bradders.

Thousands of borrowers will be able to claim compensation after the Financial watchdog the FSA fined a lender for hammering those in arrears with excessive charges.GMAC which was one of the major mortgage providers has been fined a huge £2.8 million by the Financial Services Authority.Customers who had fallen behind with payments have been treated “unfairly” by GMAC, say the FSA and now the mortgage lender must repay up to £7.7 million, plus interest to more than 46,000 borrowers.The FSA have said that this case “sets a precedent” which opens the door for others that may have been treated with such disregard and may also be entitled to similar compensation in the future.The FSA found four key failings with GMAC:

• Excessive and unfair charges

• Poorly-designed repayment plans

• Inadequate training of mortgage staff

• Repossessing before considering the alternatives

The FSA have warned that action will be taken against those lenders that treat struggling borrowers unfairly. The regulatory body has identified five lenders that have broken the rules but GMAC is the first example of action being taken and public censure.CompensationThere are three arrears fees for which GMAC will have to pay compensation:

• Non-direct debit fees which are usually charged when you pay by cheque or bank transfer to cover administration costs which are levied on customers when they did not make a payment. This equals an average refund of £117

• Early repayment charges which are usually applied when you pay off a mortgage before the end of an introductory period. These charges are applied to the portion of the loan in arrears as well as the whole loan meaning customers paid twice. This equals an average refund £14

• Borrowers have also been charged part of the solicitor’s instruction fee which was more than the actual cost. This equals an average refund £45

The FSA is unsure of the total number of customers who have been affected, however, it is thought to be somewhere between 46,000 and 114,000. The FSA only has figures for the total number of individual charges that need refunding; this is currently at 114,000. Still, many homeowners will be entitled to multiple refunds.GMAC released a statement to say, “We apologise to customers affected. We have established a customer redress programme. Whilst our arrears charges were in line with the market, in hindsight, we fully accept liability for certain fees. Our estimates of the costs were not proportionate to the additional administration required. We will be writing to customers who incurred these charges and will re-credit the charges plus interest.”www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

11/05/2010 by Bradders.

A recent ruling by the Financial Ombudsman Service has ruled that home owners can obtain financial compensation from mortgage lenders/brokers if they have failed to provide the borrower with suitable advice. Home owners who begin such claims early enough may even be able to avoid repossession.

Back in the boom years of the last decade, lenders were approving mortgages at record rates. Mortgage brokers were reaping the benefits through their commission structures. In the rush to provide mortgages it appears that these institutions may have been professionally negligent and missold mortgages.

Lenders and brokers are regulated by the Financial Services Authority (FSA). Their rulebook for mortgage advisors (Mortgage and Home Finance: Conduct of Business - MCOB) provide that advice must be “suitable for that customer”. Many people have been sold inappropriate or unaffordable mortgages and in the current climate are experiencing difficulties in making their repayments. Repossessions are on the increase, but can be postponed or even avoided if a mortgage mis-selling investigation is undertaken. The Financial Services & Markets Act 2000 provides that breaches of the MCOB rules are actionable at the suit of a private person who suffers loss as a result. The FOS ruling potentially opens the floodgates to a huge number of claims against lenders and brokers for failing to follow the FSA guidelines.

Examples can include:·         Where housing association tenants who had a fixed rent for life were persuaded to purchase the property, but were not advised what would happen when the attractive discounted rate set up on the mortgage ended.·         Where the broker dealt with certain aspects of the advice / application superficially·         Where a client has been sold a mortgage with a fixed rate for a specified period of the term of the mortgage (i.e. the first 5 years of a 25 year mortgage are at a fixed rate whilst the remaining years are at a variable rate). If the monthly repayments on the fixed rate are so high that the borrower is pushed to their financial limit and would have no chance of paying the variable rate in the future and so is, in effect, borrowing beyond their means.·         If the borrower has been told that when the fixed rate ends they should remortgage with another lender to get a new fixed rate, due to property prices increasing this would be achievable.If the clients were not advised of the inherent risk in this approach they may not have been given suitable advice. They may not have considered that the value of the property could fall leading them into negative equity, making remortgaging not possible (especially in view of the credit crunch) and therefore the variable rate unaffordable 

An area of major concern is the Right to Buy purchasers who have received particularly poor advice from advisors

Due consideration needs to be given as to who the claims should be directed against in the event of missold mortgages

It all depends on who sold the product. If it is sold by the sales force of the product provider then obviously the claim lies against the lender.
If it is sold by a broker then it lies against him. If the complaint is not dealt with by the broker adequately the case can be refered to the FOS which has the explicit power to order the firm to pay for distress and inconvenience as well as financial loss. If the broker is insured and the claim is notified to insurers then they should deal with it. If the broker goes bust but was insured and the insurers don’t avoid cover e.g. for late notification then the claimant can recover against the insurers under the Third Party Rights against Insurers Act 1930.

In the event that a broker goes out of business or a lender has gone into liquidation, as they are both FSA regulated, clients can use the Financial Services Compensation Scheme to pursue any claim. Compensation can be sought for financial loss only.To quantify if a mortgage has been missold a mortgage audit needs to be undertaken and if found to be the case compensation can be sought.www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

09/05/2010 by Bradders.

The Financial Services Compensation Scheme is stepping in to protect individuals who may have lost money as a result of dealings with five mortgage firms.Consumers across the UK can now claim compensation if they have lost money as a result of their dealings with five mortgage advisors the FSCS has declared in default.

The five firms are mortgage advisors PMSG Insurance Services Limited also trading as Professional Mortgages Services Group, Financial Quest UK Limited, Finance Direct (UK) Limited, First Class Mortgages Limited, and Network Data Limited.

Network Data went into administration in 2009 owing appointed representatives more than £2m.Declaring the firms in default means they are unable or likely to be unable to pay claims against them and triggers FSCS protection for their customers.Due to a recent change in the compensation limits, the maximum amount that consumers may be able to claim varies.

For missold mortgages the maximum level of compensation for claims against firms declared in default before 1 January 2010 is 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per person per firm.However, if a firm was declared in default on or after 1 January 2010 the new compensation limit is 100% of the first £50,000 per person per firm.The FSCS says some smaller businesses are also covered but only for deposit and investment claims. Larger businesses are generally excluded, although there are some exceptions to this - for example for claims in respect of certain compulsory insurances.A smaller company must meet two of the following criteria (as set out in section 247 of the Companies Act 1985 or section 382 of the Companies Act 2006 as applicable):

 - Turnover: not more than £6.5 million

 - Balance sheet total: not more than £3.26 million

 - Total number of employees: not more than 50

Kate Bartlett, director of operations at FSCS, says: “The FSCS’s role is to help people who have lost money as a result of doing business with an authorised firm that is unable or likely to be unable to meet claims made against it. The FSCS helps to instil confidence in the financial services sector by ensuring consumers get the compensation they are entitled to when this happens”.

It’s coming to light now that certain unethical mortgage brokers and financial advisors were taking advantage of their clients with their ‘professional’ advice. With the prospect of increasing their already substantial commissions they made recommendations to their trusting clients on mortgages that would benefit them more than the client.Although this sharp practice has been going on for years it is only within the last decade that things got really out of hand.

As far back as 2004 the Financial Services Authority introduced new regulations to curb missold mortgages. However the lure of easy money from their unsuspecting clients proved too great and many people were still sold mortgages that they could not afford or were even suitable.

However, all is not lost as these very rules can be used to prove that the broker gave the wrong advice and if proven you are entitled to compensation.To prove conclusively that a missale occurred a mortgage audit needs to be conducted. This would entail a professional mortgage broker forensically going through the sales procedure. They would look to see what advice the broker gave and if it was in the clients best interests.

For example was the entire market trawled to see if the best rates were being offered or if the terms of the mortgage were suitable for the borrower? Were the clients best interests satisfied in terms of affordability or was there a recommendation to falsify income to be eligible for that mortgage. Are you now in,or facing financial hardship due to the mortgage advice given? If anyone believes that they were give bad advice regarding their mortgage, commissioning a mortgage audit will put them on the road to getting them back to where they would have been without this advice.

www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

08/05/2010 by Bradders.

A recent decision by the Financial Ombudsman Service for a householder who had his home repossessed after being mis-sold a hefty mortgage could set a precedent, preventing others from losing their properties or getting recompense.An estimated 75,000 families this year (against 40,000 last year) will lose their homes, according to the Council of Mortgage Lenders (CML).

However, many who face the prospect of vacating their homes could be helped by rules covering “suitable advice” for borrowers, which is contained in the handbook of the Financial Services Authority (FSA)In this recent decision the homeowner struggled to repay his mortgage and his mis-selling case was taken up by the Financial Ombudsman Service, who upheld the complaint.

Despite the case being taking on at a late stage by the FOS he was subsequently repossessed, but he will receive compensation. For borrowers who begin cases at an earlier stage they may well be able to save their homes too.As a housing association tenant, the homeowner had the valuable promise of a rent fixed for life. However, a mortgage adviser persuaded him to buy the property and failed to consider the affordability when the attractive discounted rate (set up on that mortgage) ended. The homeowner was subsequently repossessed and had to move out of his home. A formal complaint was then lodged with his mortgage adviser and ultimately the case was brought to the FOS.

It is now apparent that more claims of this kind are likely to emerge as there are potentially thousands of missold mortgages. The main source of optimism for those in a similar position lies deep within the FSA’s rulebook for mortgage advisers, Mortgage and Home Finance: Conduct of Business (MCOB).This states mortgage advice must be “suitable for that customer” and that advisers “must make and retain a record” of it being suitable; this is known, crucially (and rather technically), as complying with section 4.7. Breaches of the MCOB rules are “actionable at the suit of a private person who suffers loss as a result”, under section 150 of the Financial Services and Markets Act 2000.

Some industry experts are confident that such cases would succeed as there is a fundamental obligation under MCOB rules. This would mean that thousands of borrowers in a similar situation could use these rules to retain ownership.Others are a little more cautious and feel it would depend on individual circumstances but agree that there is merit in considering MCOB rules.  

Although there is concern that some borrowers might try to exploit the MCOB rule without good cause, there appear to be many cases of people being mis-sold mortgages they could not afford. A Citizens Advice report from 2007 ‘Set Up to Fail’, detailed the sub-prime lending market. The charity’s repossession clients had often found themselves with inappropriate and unaffordable mortgages and secured loans, and people buying council houses received “particularly poor advice”. One case highlighted a Welsh couple with a disabled child who were persuaded to take a second mortgage on their home.

The loan wiped out their equity and meant £1,300 - 87% - of their £1,500 monthly income went on mortgage repayments.”The MCOB rules are there for a reason, to protect consumers,” says  Sue Anderson from the Council of Mortgage Lenders. “Consumers have ‘the ability and right’ to rely on these regulations if they believe they have not been dealt with correctly,” she says. Although the Ombudsman’s decision found in favour of the homeowner, the issue remains complicated. The FOS is charged with restoring people, ‘as far as possible’, to the situation they would otherwise have been in - and that is not straightforward in circumstances such as these.

It could work out for example that you are no worse off for taking a missold mortgage, as the property value increased over this period. This would mean that no compensation would be offered.However, in the current climate the Ombudsman has to work out levels of compensation for people who have not been protected by the rise in property values.Have you got a potential case?• Were you encouraged to overstate your income by the broker?• Did your mortgage adviser not explore affordability with you, or do you feel you were dealt with in a superficial way. Advisers should rely on past figures for income and outgoings.

If they don’t have them, then alarm bells start to ring. • You will have extra grounds for a case of mis-selling if your mortgage stretched beyond your retirement date and your adviser did not explore that as an affordability issue. • You’re case might be based on  mortgage “misrepresentation” which might be arguable if you were given a very hard sell, or only told everything good about the product and given no information about what would happen when interest rates went up. If misrepresentation is argued successfully, it could be possible for the contract to be rescinded - as happened in a case in the 90’s 

There are many other reasons for a missale and a mortgage audit by a claims management company that specialises in missold mortgages will prove if a missale has taken placeOnce this has been established a claim will be made against the advisor who sold the mortgage and if the response is unsatisfactory the case will be packaged and taken to the Financial Ombudsman Service for a ruling. If there is a repossession order in place the FOS would request that the repossession proceedings are put on hold during any investigation.

It should be noted that even if a mortgage began before the MCOB rulings in November 2004 the rules could still apply. www.missoldmortgages.org.uk  

Posted in Missold Mortgages | No Comments »

07/05/2010 by Bradders.

As we progress through the new decade it becomes apparent what a disaster  the last decade has been financially for the majority of people. What started out as a flag waving money for all environment has bitten us on the proverbial backside! 

It should not really be a surprise as things that are too good to be true generally are. The days of easy money have come to a grinding halt and there is a lot of belt tightening currently happening. During the boom years of the last decade it would seem that an awful lot of misselling was taking place but everyone was too busy counting their money to take any notice. The major financial institutions were filling their pockets with the profits made from the controversial payment protection insurance.It’s only now that the great British public are waking up to the fact that they were duped into buying this and there are now ppi complaints by the thousands every week. 

It’s only now that it is also coming to light that certain unethical mortgage brokers and financial advisors were also taking their clients to the cleaners with their ‘professional’ advice With the prospect of increasing their already substantial commissions they made recommendations to their trusting clients on mortgages that would benefit them more than the borrower. 

Although this sharp practice has been going on for years it is only within the last decade that things got really out of hand. As far back as 2004 the Financial Services Authority introduced new regulations to curb missold mortgages. However the lure of easy money from their unsuspecting clients proved too great and many people were still sold mortgages that they could not afford or were even suitable.However, all is not lost as these very rules can be used to prove that the broker gave the wrong advice and if proven you are entitled to compensation. 

To prove conclusively that a missale occurred a mortgage audit needs to be conducted. This would entail a professional mortgage broker forensically going through the sales procedure. They would look to see what advice the broker gave and if it was in the clients best interests. For example was the entire market trawled to see if the best rates were being offered or if the terms of the mortgage were suitable for the borrower? Were the clients best interests satisfied in terms of affordability or was there a recommendation to falsify income to be eligible for that mortgage. Are you now in, or facing financial hardship due to the mortgage advice given?   

If anyone believes that they were give bad advice regarding their mortgage, commissioning a mortgage audit will put them on the road to getting them back to where they would have been without this advice .www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

30/04/2010 by Bradders.

With the recent spate of misselling scandals there’s a new kid on the block that looks likely to cause a major problem anytime soon. By now most people would have heard something, or someone involved with ppi complaints but this new misselling scandal will lift the lid on the dubious activities of some mortgage brokers and IFA’s.

These ‘professional ‘advisers abused the trust of their clients to recommend mortgages that were totally unsuitable and in many instances unaffordable. The long term financial suffering endured by their clients was immense and in some instances they have never recovered from it and have lost their homes as a consequence.

The Financial Services Authority (FSA) has been aware of this sharp practice for some time and has implemented measures to try and combat missold mortgages. In November 2004 new regulations were introduced to curb this malpractice and whilst worthwhile, the lure of high commissions proved too much for some and the sharp practice continued. It is these regulations that will establish if a mortgage has been missold and if proven to be the case the client will be entitled to compensation.

One of the major concerns regarding a missale is the fact that a lot of brokers were recommending mortgages that the client did not need to take but they were receiving high commissions from the lenders. A lot of these mortgages were designed for people with adverse credit and were always on a higher interest rate than those obtainable on the high street. It has also become apparent that borrowers were encouraged by the brokers to exaggerate their incomes and take out self cert mortgages.

They were also guilty of not giving best advice and encouraging their clients to borrow beyond their means. If you have a mortgage with one of these lenders that was recommended by your broker it might be well worth your while having a mortgage audit to assess if you have one of the thousands of missold mortgages.  

There are numerous reasons for a possible missale but firstly you need to have been sold the mortgage by a broker on or after the 1^st November 2004. Here are some of the obvious reasons for questioning missold mortgages. Did the broker charge a set up a fee? Did you self certify your income or were you encouraged to falsify income to obtain the mortgage·        Does the mortgage take you past retirement age· Was the mortgage arranged on an interest only basis with no repayment vehicle offered· Did you have any adverse credit issues when you applied for a mortgage· Were you already in financial hardship when you took out the mortgage i.e. CCJ’s,arrears· Were you repeatedly moved from one low start mortgage to another with the same lender incurring fees each time· Were you on state benefits or receiving a Government pension at the time you took out the mortgage?Due to the complexity of the mortgage market and the MCOB rules (laid down by the FSA) a mortgage audit will be required to prove if a missale has taken place. If this can be proven then thousands of pounds in compensation is due back to the borrower.If you have an inkling that you may have been missold a mortgage then now is a good time to get a mortgage audit to see if you could be claiming back thousands in compensation and getting your life back on track.

www.missoldmortgages.org.uk  

Posted in Missold Mortgages | No Comments »

25/04/2010 by Bradders.

Whilst the number of ppi complaints shows no sign of abating in the immediate future, fresh concerns are now being raised regarding mortgage brokers leading up to the financial meltdown. Although banks have been heavily criticised for the part they have played in the ‘greed is good’ culture mortgage brokers are now facing the unwelcome glare of the FSA. 

During the halcyon days of the last decade being a mortgage broker or financial adviser was almost a licence to print money. People wanted to borrow money, lenders obviously wanted to lend and the broker acting as a middle man earned big commissions by acting as an introducer. There was nothing wrong in this per se, except for the fact that a lot of brokers became greedy and wanted to maximise their commissions and inflated arrangement fees. The problem became so astute that the financial regulator introduced certain reforms in 2004 to try and stamp out this practice of missold mortgages. 

Not every mortgage broker or financial adviser indulged in this practice but unfortunately we are not talking about the occasional missale as there are potentially hundreds of thousands of missold mortgages out there. Although proving a missale is a complex procedure and needs a mortgage audit there are obvious reasons that point to a missale. Brad Martin of Claims Management Company said “There was an awful lot of easy credit around up to a few years ago. Mortgage lenders were falling over themselves to thrust money at you especially if you owned a property. For them it was an easy return on investment as whatever money they loaned you at whatever rate they were safe in the knowledge of ever increasing property values” 

It was during this period when unscrupulous brokers abused the trust of their clients and recommended that they take out unsuitable mortgages. Many people’s lives have been damaged beyond repair by getting themselves into financial difficulties with mortgages that they could ill afford and have since paid the ultimate financial price by being evicted. Some of the reasons for a possible missale might apply to you if you used a broker to arrange your mortgage. An important date to clarify is if you arranged your mortgage on or after 1^st November 2004. ·         Was the mortgage taken out on or after 1^st November 2004·         Did the broker charge a set up fee·         Did you self certify your income or were you told to falsify income·         Does the mortgage take you past retirement age·         Did you have ant adverse credit issues when you took out the mortgage i.e.CCJ’s or mortgage arrears·         Was the mortgage arranged on an interest only basis with no repayment vehicle?·         Were you repeatedly moved from one low start mortgage to another with the same lender incurring fees each time·         Were you on state benefits or receiving a Government pension at the time you took out the mortgageThese are just some of the areas where a missale could have occurred and we haven’t even touched on the buy to let mortgages! However, if any of the above applies to you or if you have inkling that all is not well then a mortgage audit would seem the sensible route. If it can be proved that you were indeed missold a mortgage then the regulations are such that you will have to be put back into the position you should have been. This could amount to thousands in compensation and more importantly get your life back on track. 

www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »

25/04/2010 by Bradders.

Have you ever had the feeling that you may have been sold the wrong mortgage product? Everything seemed a little rushed at the time and although it’s your signature at the bottom of the forms you never really understood what you were signing. Everything was explained to you, although the terms seemed a little technical and you’ve never really got your head around how interest rates work. 

However, you were being told by the mortgage broker that he handles all the technical details and all you needed to do was sign the forms. After all he had trawled the market for the best deals and you were grateful to have someone who took the stress out of sourcing the best mortgage deals for your situation at the time. Even so, you still didn’t fully understand why he was recommending that product in preference to the others apart from the fact that this one would be processed quicker than the others. If a similar scenario applies to you don’t worry, you are not on your own as thousands of people are now questioning if they were given the right mortgage advice. 

It is now apparent that there are potentially hundreds of thousands of missold mortgages out there. The very people that you employed to glean their professional advice have been recommending mortgages that benefit them more than you. It has been common knowledge for years that high commissions on certain types of mortgages have led to brokers abusing the trust of their clients. The main problem area is brokers advising their clients to take out sub prime mortgages when in reality they could have qualified to get a high street mortgage. The regulators have known about this problem for years and certain regulations were brought into force in 2004 to stamp out this problem. It’s these very codes of conduct that can be used to prove that thousands of people have been missold mortgages and can now claim back compensation. 

Due to the complexity of the mortgage market and associated MCOB rules a mortgage audit will be required to prove if a missale has taken place.However; before this procedure is commissioned certain points need to be established to see if an audit is worthwhile. A quick reference guide is as follows. 

• Was the mortgage taken out on or after 1^st November 2004
• Was the mortgage arranged through a broker
• Did the broker charge a set up fee
• Did you self certify your income or were you told to falsify income
• Does the mortgage take you past retirement age
• Did you have ant adverse credit issues when you took out the mortgage i.e.CCJ’s arrears
• Was the mortgage arranged on an interest only basis with no repayment vehicle?
• Were you repeatedly moved from one low start mortgage to another with the same lender incurring fees each time
• Were you on state benefits or receiving a Government pension at the time you took out the mortgage

These are just some of the areas where a missale could have occurred and we haven’t even touched on the buy to let mortgages! However, if any of the above applies to you or if you have inkling that all is not well then a mortgage audit would seem the sensible route. If it can be proved that you were indeed missold a mortgage then the regulations are such that you will have to be put back into the position you should have been. This could amount to thousands in compensation and more importantly get your life back on track. 

www.missoldmortgages.org.uk   

Posted in Missold Mortgages | No Comments »

23/04/2010 by admin.

How many people are out there at this moment in time wondering how they got into financial mess they are currently in. It should not be a surprise when one considers how easy it was to get credit only up until a few years ago. Every week the recycling box was filled to the brim with junk mail offering credit cards, loans, mortgages, remortgages and everything in between! This was also a time when your friendly loan broker or financial adviser used to give you the annual financial health check. The ‘I’m in the area next week’ phone call to arrange an appointment to see if they can improve your current deals and perhaps get you a better mortgage. 

Well unfortunately with the credit crunch and the knock on effect in house values everything has come home to roost. Some of the deals that were being offered were more for the benefit of the adviser in terms of the commissions they could earn and it would now seem that certain regulations have been breached. This is good news for borrowers because missold mortgages mean they can get back money they should never have paid out as compensation.   The Financial Services Authority introduced certain regulations at the end of 2004 to basically stamp out bad practice. However, with juicy commissions being payable on certain mortgage products the temptation was too great and the bad practices just rolled on. In addition the lenders were basically falling over themselves to thrust money at people especially if you were a property owner. They had no qualms about lending the money because they knew there was the ever increasing value on their investment. It was during this ‘gold rush’period that there was a high proportion of missold mortgages 

The good news is that the codes of conduct introduced to stop this misselling can now be used to prove that you have a missold mortgage. Due to the complexity of the mortgage market and the MCOB rules a mortgage audit will be required to prove if a missale has occurred. However before this procedure is commissioned certain points need to be established to see if an audit is worthwhile. If a broker or IFA was involved in the mortgage the transaction needs to have taken place after October 31^st 2004.The main problem was brokers advising their clients to take out a sub prime mortgage when in reality they could have qualified to get a mortgage from a high street lender. These sub prime mortgages would have been taken out with lenders like GE Money or Platform although the Northern Rock together mortgage has taken bad press. 

Other areas for consideration is if the broker made you take out a self cert mortgage and you were in full time employment. If the broker charged a set up fee. Will the mortgage take you past retirement age? Were you repeatedly moved from one low-start mortgage to another with the same lender incurring fees each time? If you get the feeling that you have one of the thousands of missold mortgages,now is the time to get an audit and get the claims procedure in action.  www.missoldmortgages.org.uk

Posted in Missold Mortgages | No Comments »