Being Familiar With Mis Sold Mortgages

It is every person’s desire to have a property of their own. Unfortunately this commendable dream was used by some unscrupulous mortgage agents to take advantage of the specific situation for their very own benefit to make commission and have mis sold mortgages to most of the aspiring property owners. This implies that some aspects have been intentionally ignored or maybe customers have been deceived by mortgage broker companies to make them get into a contract that are not meant for them leading to foreclosure of the property ultimately caused by inability of the house owners to pay.

Fortunately, the Financial Ombudsman Authority (FOA) can be approached if you think that you fall on the category of mis sold mortgages with your property employing the foundation of the Financial Service Authority (FSA) rulebook designed for mortgage advisers, Mortgage and Home Finance: Conduct of Business (MCOB). As necessary mortgage companies need to conform to section 4.7 which advises that they should provide realistic advise “suitable for that customer” and that advisers “must make and retain a record” of it being suitable. Failure of the mortgage advisers to get this done and results in a loss on the property on the part of the customer is actionable according to section 150 of the Financial Services and Markets Act 200.

So how will a property owner recognize that they fall on the category of mis sold mortgages? First is to think about the past transaction made by you and your broker. Were you made aware of what you will be paying and if you can really afford the loan or not? Most particularly, during the deal did the broker formally examine your own financial capability? In reality there are circumstances wherein the brokers propose the would-be homeowners to avail self certification or fast-tracked mortgages. This implies that verification of income will depend on the lender’s discretion.

Another ground that a property owner can use in proving that their property was mis sold is that the mortgage of their property runs past their particular retirement age. If this is the case, did your own broker give you tips on how you can still pay if you are no longer getting a regular income and will just live on your pension? Were you additionally informed that the mortgage payment you’re settling is on interest only? This implies all the cash you’re paying only settles the interest of the mortgage and doesn’t decrease any of the capital amounts of the property.

All these factors are merely a number of the frequent concerns received by the FOS relating to mis sold mortgages of most home owners in UK. Obviously it is most likely that mortgage companies will definitely refute their particular shortcomings. Because of this it is best to hire a solicitor to assist you with your condition to show and have your case review by the Financial Ombudsman Service. If your case is decided in your favour, the specific mortgage company will undoubtedly be demanded to pay you compensation for the trouble they have generated.