Mis-sold Mortgages are never fun to deal with. Over the last couple of weeks, UK citizens everywhere have experienced the effects of the corona virus and how it has made their mortgages even more difficult to pay back. It was only on the 23rd of April that the “partial lockdown” on mortgages was lifted, however it does not change the fact that many citizens still have to pay the money back thanks to their “mortgage payment holiday.” This is only made worse if you are paying back more than you have to!
So, how do you even know if you have been mis-sold a mortgage? Better yet, how do you actually get mortgage mis-selling compensation? Gowing Law Solicitors, the top Manchester mortgage lawyers, are here to put you on the right track and help you reclaim all of the money that you have lost. Here’s what you need to know!
What is mortgage mis-selling?
Mortgage mis-selling can happen to anyone who has been over-paying their mortgage. Loaners (such as banks and brokers) may advise you to take a certain loan without fully considering your situation and how much you can actually afford. Your mortgage will need to be paid back through small payments that you can afford. However, if you are been mis-informed about what would best suit your budget, it is obvious that you have a mis-sold mortgage claim on your hands.
Like Donald, being mis-sold a mortgage can differ from person to person. However, the main gist of a mis-sold mortgage is that you were not given proper advice on what mortgage you should take. It is not even really about the money, instead it is the fact that you took a risk with your mortgage that turned out to be more riskier than you originally intended it to be. As the FCA (Financial Conduct Authority) puts it. Any financial advice sold to you much be:
“fair, clear and not misleading”
This is what you can claim compensation for.
How is being mis-sold a mortgage different to a miscalculated mortgage?
The main difference between the two problematic mortgage claims is due to the lender’s “intent”. Although both of them mean that you are paying more than you have to, a miscalculated mortgage may have been due to an error in the calculation. A mis-sold mortgage implies that the lender did not check their facts and gave you a mortgage that did not suit your situation. Sometimes this may have been on purpose to make you pay more. With either of these claims, you will be able to claim a substantial amount of compensation.
For more information on miscalculated mortgages, please check out our blog! There you will find all the basics of miscalculated mortgage claims and more.
Can I have some examples of financial mis-selling?
There are so many ways that you have received a mis-sold mortgage. Some are more complicated than others. So, to make things a little more simpler, let’s divide them into two categories depending on their difficulty :
Simpler Cases of Mis-sold Mortgages
A few cases of mis-sold mortgages are pretty clear on why the claimant may be owed compensation. This may be because:
- The claimant already retired after the mortgage end date
- You were told to self-certify (aka. Borrow more money without having to prove your income) by your lender
- A lender told you to overstate your earnings/income in order to borrow more money
- You were not told that your lender would be owed a “commission” for selling you the mortgage
- You were recommended switch lenders but were not told about any “switching” fees
- Your lender had you on a fixed rate mortgage, but were advised to switch without being told of any fees for leaving the scheme.
As you can see from any of these examples, the financial mis-selling came as a result of bad advice. Sometimes there may not have ever even been advice in the first place! You may have simply been told to take out a mortgage and then were told to do something different. You mortgage should reflect your situation and should be based on your own personal finances.
Complicated Cases of Mis-Sold Mortgages
Keep in mind that if everything was simple then we would all be top mis-sold mortgages lawers in Manchester. Unfortunately, there are cases where it may get a little more complicated. If you have any of the following you may also be entitled to a mis-sold mortgage claim:
- Endowment Policies
- Interest- Only Mortgage
- Retirement Lending
- Subprime Mortgages
Whilst these category names may seem a little intimidating, if you have a genuine reason to believe that you fall under them, you could be owed a lot in compensation! Let’s learn a little more about them:
As you can see, the policies are a little more complicated, but if you have the right documentation then you should be able to get compensation.
What do I do now? I have mis-sold mortgage claim!
Now that you are confident that you have a mis-sold mortgage claim, it is time for you to get a trained mortgage solicitor in Manchester on the case. No matter what your claim is, if you find yourself still repaying your loan even if your mortgage ends, Gowing Law Solicitors wants to help you!
You can file a complaint with your mortgage provider or ask them for specific documents to prove your case. Remember to file these documents in an orderly fashion. The more informed you are about your case, the more likely that you are going to get a good pay out. You may have even found that PPI was placed on top of your mortgage. If you have claimed for that back then don’t forget about the tax. We are more than happy to offer advice on the basics of PPI tax reclaims.
Here is what you need to do if you have a genuine mis-sold mortgage claim:
Having a trained mortgage mis-selling lawyer on your side will give you an extra boost of confidence. It can be difficult going against your lender in court. That’s why having a law expert will keep all of your information in order. They will present a strong case that will ensure that you get the compensation that you deserve. However, there is no harm in also involving the help of the Financial Ombudsman bureau.
How much could I earn in compensation?
Now, this depends on the type of claim you have and how much money you put into your mortgage payments. Every case will come out with a different financial outcome if it is won. However, if you have put a lot in then there is a chance you will get a lot out. Speak to our Gowing Law Mortgage specialists to get an estimate of how much you could earn. That way, we can learn about your case and how much we can help you with it.
How long do I have to claim my mis-sold mortgage?
Like other PPI tax reclaims, there is a deadline on when you can actually claim for a mis-sold mortgage. You must lodge your complain in 6 years from when you took the mortgage out. However, in certain circumstances this time may be extended, such as 3 years on from when you found out you were mis-sold the mortgage.
What if I am no longer the owner of the property that was mortgaged?
If you have been paying too much for the interest on your mortgage, you can still make a claim on it, even if you do not own the house anymore. What matters is that money was taken from you, and you were given bad advice. If you were forced to downsize or your house was re-possessed, this will give you more evidence that you can make a claim!
You can also still make a claim if you had a shared mortgage, recently divorced or had a joint account. Your partner may also be entitled to compensation.
Want to learn more information about the law?
Don’t forget to check out our additional blog topics! We go into the basics so that they are understandable, and will help you get started on your journey into the world of law. For instance, if you’re interested in immigration, and potentially getting a visa, you may want to check out our blog on the basics of immigration and UK visa categories.
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Contact Gowing Law Solicitors for help!
If you want more information about how our mis-sold mortgages solicitors can help you, make sure to visit our information page! Our experts can make sure to take your case and help you get the compensation you deserve.
We look forward to hearing from you soon and wish you the best of luck with your mis-sold mortgage claim!