1-minute guide to Mortgage Claims


Mortgage Claims

Buying a home is one of the biggest decisions you will ever make in life and is considered one of the most stressful

Banks and mortgage providers have a duty to protect your interests at all times, particularly when you are parting with potentially life changing sums of money

As the UK recession has proved, banks don’t always have your best interest at heart and some of them are guilty of mortgage mis-selling

Suspect you’re a victim of mortgage mis-selling? Here’s how to find out and what you can do about it

Need to know

  • There are many different types of mortgages that have found to be mis-sold
  • Interest only mortgages were popular as they allowed people to own their homes with low monthly costs
  • According to the FSA more than 50% of interest only mortgages borrowed in 2007 and 2008 were mis-sold as no proof of earnings was requested, a fact which contributed toward the recession.
  • RBS and NatWest were recently fined £14.5 million by the Financial Conduct Authority for ‘serious failings’ with regards to mortgage sales.
  • The FCA found that just 1% of 30,000 customers were given the correct mortgage advice by RBS and NatWest
  • The problem of mis-sold mortgages is not exclusive to RBS and NatWest as many different banks and providers have been found to have provided insufficient information to mortgage customers

Reasons your mortgage could have been mis-sold

  • It’s suspected that mortgage lenders have been selling interest only and sub-prime mortgages to customers who could have benefited from other products yet weren’t given the option
  • Interest only mortgages were popular with buyers in the 80’s and 90’s who took them out with an endowment to pay the loan at the end of the term
  • If you took out this kind of investment to pay off your mortgage but found that it wasn’t going to return enough to clear it, you may also have been mis-sold
  • It can be cheaper in the short term to consolidate your debts by adding them to your mortgage. In the long term it isn’t as you will be paying much more in interest. If this wasn’t made clear you may have been mis-sold
  • If you paid too much in fees when you bought your property or if hidden fees were added to your mortgage repayments you may be able to claim
  • If your mortgage is scheduled to end after you have retired, your adviser was obligated to take into consideration your eligibility to repay after you’ve left work. If they didn’t your mortgage may have been mis-sold
  • Did you take a self-certification or fast track mortgage without the need to provide your income? You may have grounds to make a claim

How to claim

  • Always contact your mortgage provider first if you believe you have been mis-sold
  • Gather all the relevant information together including any written documents
  • Remember to be clear and concise and keep to the facts
  • If you are unhappy with their response or they do not respond within 8 weeks, take your complaint to the Financial Ombudsman service
  • If your mortgage provider has since gone bust then take your complaint to the Financial Services Compensation Scheme who may still be able to compensate you

The inside track

  • You could claim up to £48,000 per applicant
  • If you remortgaged your property you could be entitled to more
  • If you were unsure if you were mis-sold it is always worth an enquiry just to be sure
  • For more information on mortgages have a look at our handy guide
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Sarah Willingham
Sarah Willingham is a serial entrepreneur, business investor and leading consumer expert. She has received a number of accolades for her contribution to business including The Sunday Times 500 Most Influential People in Britain 2016, The Times 35 Most Successful Women Under 35, Business Weekly’s Young Entrepreneur of the Year, Courvoisier Top 500 and an entry into the Who’s Who of British Business Leaders. She holds three business degrees including an MBA from Cranfield School of Management, where she is also an advisory board member.