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Mortgages

Mis-sold mortgages

Borrowers who had an adverse credit rating resulting from a CCJ, mortgage arrears or other default were often sold sub-prime mortgages by mortgage brokers. The products often had hefty fees and high reversion rates as well as heavy redemption penalties. It was common for borrowers to feel that because they had a poor credit rating, a sub-prime mortgage was their only option. Mortgage brokers selling these products were rewarded with large commissions or procuration fees by the lenders. These products were often mis-sold as borrowers may have qualified for more appropriate products that they could have obtained from high street lenders at a lower rate.

Self-certification mortgages were also mis-sold to borrowers who were able to verify their income. Brokers pushed this product as they received high procuration fees and also because of the speed at which the product was sold as lenders did not make the usual checks on a borrower's status. Instead, borrowers were advised by mortgage brokers, to self-certify and in some cases inflate their income in order to qualify for a mortgage.

Other reasons that the advice that was given to you at the time you took out your mortgage may have been unsuitable are:

  • Borrowers were advised to take a mortgage beyond retirement with no real means to continue to repay it.
  • There was a real lack of clear advice in relation to interest only mortgages about having a plan in place to repay the mortgage amount at the end of the term.
  • Mortgage products where the initial rating period did not suit the borrower's individual circumstances were offered.
  • There were instances of failure to offer borrowers a range of mortgage products and provide assistance in deciding which was best for their individual circumstances.
  • Excessive fees may have been charged by the broker.
  • The broker failed to carefully assess the borrower's ability to pay the mortgage in the future after the initial rate expired.

Even if the company that advised you to take out your mortgage is no longer in business, the Financial Services Compensation Scheme (FSCS) may cover you. This scheme was set up to provide compensation for customers of companies who cannot pay compensation. If your policy was taken out on or after 1st November 2004, then you may be covered by this scheme.

What can I do to reclaim mis-sold mortgages?

You are only going to get one chance to get it back, so it's important that you put your best foot forward. You can either, claim on your own or you can use an expert like Reclaim Specialists to help. We can't guarantee a pay-out for you or get more money than you would if you claim on your own, or that we can handle the claim faster.

What we can guarantee is a professional, straight forward, honest service which is hassle free for you. To see more about who we are, click here. For our contact details, click here .

Pension Mortgage

What is pension mortgage?

It is an interest-only mortgage that is supported by a personal pension. These were sold mainly in the 1980s and 1990s as a "cheaper" way to repay a mortgage by combining the cost of retirement planning and the mortgage into a single financial product.

Only 25% of the personal pension can be used to repay the mortgage or loan, the pension fund needed to be more than 4 times the amount of the mortgage to repay the mortgage in full.

Mis-sold pension mortgage

If your adviser recommended a pension mortgage to you, it may have been unsuitable advice because:

  • It is an investment-backed pension with a risk of a shortfall when you retire and are not in a position to do anything about it.
  • All your eggs are placed in the same basket.
  • Attaching the date of your mortgage repayment to the date of your retirement is inflexible and if there was a shortfall when you retired, you would have to find another means of repaying your mortgage at a time when money is short anyway.
  • The mortgage would run for long in excess of the standard 25-year term which could increase your overall cost in terms of interest.

Even if the company that advised you to take out your mortgage is no longer in business, the Financial Services Compensation Scheme (FSCS) may cover you. This scheme was set up to provide compensation for customers of companies who cannot pay compensation.

What can I do to reclaim mis-sold pension mortgages?

You are only going to get one chance to get it back, so it's important that you put your best foot forward. You can either, claim on your own or you can use an expert like Reclaim Specialists to help. We can't guarantee a pay-out for you or get more money than you would if you claim on your own, or that we can handle the claim faster.

What we can guarantee is a professional, straight forward, honest service which is hassle free for you. To see more about who we are, click here. For our contact details, click here .