Mortgages

There are currently in the UK nearly 11,000,000 active mortgages! Over 350,000 first time buyers join the market a year and a similar number of people re-mortgage to get a better or more suitable deal. There has been a lot of focus recently about whether brokers and lenders have been negligent, hidden commissions or even whether lenders have mis-calculated rates. If any of these issues are in fact true compensation could be due, surely? 

This article explores this in a bit more detail, highlights free resources and useful websites to help and suggests companies and products that may be able to help you further. 

Mortgages are secured directly with a bank/lender or via a mortgage broker. Mortgage brokers do not act as lenders but as introducers and facilitators between you and the lender. Both parties must give you accurate advice, give you full information, explain and conduct risk assessments and explain all the charges of the product without pressuring you into accepting the mortgage offer. Brokers must disclose to you clearly what commission they will be paid by the lender for introducing you. 

If in your experience any of the above was not clear and has resulted in financial hardship you may be due compensation. Some examples to illustrate this include the below but there are many other specific examples that may be relevant for you; 

  • A broker or lender arranging a mortgage for you that is unaffordable I.e. no affordability check. 
  • A broker or lender selling you a mortgage that ends beyond you retirement age. 
  • A broker or lender not explaining the differences between interest only or repayment mortgages. 
  • A broker not disclosing fees of the product or that he would be paid for the introduction. 
  • A lender that miscalculates or rounds up your interest rate. 

So you think you have been mis-sold – what next? The good news is there are lots of free resources that can help you get confirmation.  The best place to start is by writing to your lender, this free template will help get your started. They are tightly regulated and whilst they may not like it they must process your enquiry truthfully. It is also right to give them chance to make things right. Spending some time researching the topic and speaking to companies like the Citizens advice bureau, the financial service ombudsman or the Finance Conduct Authority will also be a big help.  

If you think you have been mis-sold but do not have the time to find out and manage the process there are legal firms or claims management companies (CMC’s) that will help you. CMC’s are regulated by the FCA so working with them on a potential claim is fine but you need to be 100% sure of their charges. Most CMC’s work on a ‘no win fee basis’ the fees they charge if they are successful can be significant and come out of your compensation.  

We have suggested some legal firms and CMC’s to talk to below, you should review their terms in detail before agreeing to progress with anything or providing any specific information. You can discuss the terms with friends, family, the citizens advice bureau and the CMC extensively before committing. 

  • Claim Your Mortgage 
  • Claim Your Hidden Commissions 
  • Slater & Gordon 
  • First for Lawyers 

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