Mis-sold mortgages have recently turn into a media phenomena as the general public have begun to speak out about their mortgage repayments being too much and leading to limitless debt and worried for the home owner. Mis-sold mortgages took place lately in the last two years as the real estate sector saw a massive growth spurt by the end of the 80’s because of tax breaks and a general interest from people wanting to get onto the property ladder. This increase in the real estate and stock market motivated sellers and investor to make very high forecasts of growth, and thus when encouraging home owners and purchasers to secure mortgages they might insist in ‘Endowment’ or interest- related mortgages as rates were firmly weighted to banks’ and lenders favours. By the mid-90’s it became clear these expectations were way too optimistic and has caused home owners everywhere to end up troubled with substantial debt, some having their house repossessed as the payments become too much and greatly inflated.
An endowment mortgage is a ‘Monthly savings plan’ that invested in shares of house, designed to settle the mortgage on the house after the predicted term. It was the most famous mortgage sold to customers over the late 80’s and because of the mis-sold scandals of recent years this type of mortgage is currently non-existent, even though a similar interest-only mortgage continues to be available, with payments rising and falling together with the interest years of that specific time. Many people are now looking for help and advice from the FSA, Financial Services Authority about paying back their mortgages and coping with the financial debt they have consequently been left in. There are a couple of indications to watch for when identifying a mis-sold mortgage and the FSA are now telling people to be familiar with these indicators, enabling them to seek professional help and compensation:
If the mortgage scheme was not totally explained to you or you weren’t informed about the potential shortcoming at the end of the mortgage term
The company selling the mortgage payment told you as a home owner you would surely have paid off the loan with the endowment
The advisor didn’t assess your monetary circumstances and regular income properly or in details
The fees and charges were not spelled out in detail or in any way
An advisor encouraged or recommended you cash in a current endowment in place for another endowment scheme
The endowment and mortgage policy was set to run into your retirement but your advisor did not ensure the salary would be adequate to carry on payments
Thousand of property owners and individuals with several properties were sold the concept of an endowment mortgage with the assurance of a lump sum after 25 years or when their endowment matured, however became rather clear that this simply was not probable given the dramatic crash in real estate prices and the housing industry in comparison to the high predictions and positive outlook investors first talked about. If you believe you’ve been mis-sold your mortgage the suggestion is to get in touch with the Citizens Advice Bureau or FSA directly and they can provide you more advice about what actions to take.
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