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Mis-sold Mortgages

Mortgage complaints

If you are one of the vast number of people who have been burdened with an unaffordable and inappropriate mortgage did you know that you may be entitled to compensation?

It has come to light that thousands upon thousands of mortgages have been mis-sold to people by unscrupulous brokers and banks only looking to line their own pockets with lucrative commission and interest rather than provide a product that is suitable for their customers.

The Financial Services Authority recently highlighted this problem and has begun to crackdown on mortgage mis-selling.

In March 2009 a householder who had his home repossessed claimed that he had been mis-sold his mortgage. He took his case to the Financial Ombudsman Service and was eventually awarded £50,000 compensation. This case set a precedent and thousands of similar claims of mortgage mis-selling are expected to follow suit.

So whether you are a couple of months in arrears or being threatened with repossession then NOW is the time to act. If it's clear that you could never realistically afford to pay off your mortgage from the outset then you will have strong case for mis-selling.

The regulations

Under Section 4.7 of the FSA's rulebook for mortgage advisers, "Mortgage and Home Finance: Conduct of Business" (MCOB) it states that mortgage advice must be "suitable for that customer" and that advisers "must make and retain a record" of it being suitable.

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.

How to know if your mortgage has been mis-sold

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