6 signs of mis-sold mortgages

Is all the talk about mis-sold mortgages still a matter of interest for UK citizens? Here are six signs to look for.

10:21 10 October 2013

Many stories you heard about mis-sold mortgages in recent years on the UK market are based on facts, but some of the latest stories just don’t ring true.

Mortgages were mis-sold during 1998-2007 because house prices increased almost two-fold, thereby making it almost impossible for citizens to keep up with their mortgage payments. Mortgage lenders had sold their products without following the interest of the customers, and made them face many risks without informing them about it. But in recent years, several UK institutions brought forth policies in order to regulate the mortgage segment, and to ensure that mis-sold mortgages are a thing of the past. This means that mis-sold mortgages are not possible anymore, as lenders can no longer do the following:

1. offer mortgages to people who could not afford their monthly payments out of their current income;
2. sell mortgages that stretch over a longer period of time extending so that clients will still have to make payments after retiring;
3. tell you that the mortgage has a fixed rate, although these rates increase over time;
4. mislead you or hide some of the information about the respective mortgage before selling it to you;
5. sell you a regular mortgage instead of a self-certification mortgage if you can't prove your income;
6. sell you a sub-prime mortgage although you didn't have any credit problems in the past;

There are many other regulations that mortgage lenders have to follow nowadays, making it difficult for them to mis-sell to their clients anymore. If, however, you believe that you have been the victim of a mis-sold mortgage, you are entitled to compensation, provided you can prove that the mortgage was actually mis-sold.

 

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