Many homeowners who are now having problem of having their property being repossessed do not even have the knowledge that they might be one of the many who have been victimized with mis sold mortgages by their brokers and therefore eligible for compensation.
Obviously, mis selling of mortgages occur when the mortgage broker fall short in giving the right and accurate advice to their clients about the financial commitment they are going to make. This is actually what the Financial Services Authority (FSA) imposed on all mortgage advisers which is to inform their buyers the right information about the amount of loan they are going to pay as well as provide the most suitable mortgage that will fit their buyer's needs.
In spite of the implementation, it has been observed that not all mortgage brokers take heed in following it which results to several reports of mis sold mortgages. Accordingly, the most typical misconduct that most brokers practice is falsifying the actual payslip of the buyer to make it seem high as a way to obtain a larger mortgage. Another is not asking for verification of buyer's occupation if he is self-employed nor has a second job. Worse is that these types of actuation by the mortgage brokers are carried out devoid of the knowledge of the buyer.
There are also cases in which the adviser allows a 50 year old buyer to take a 20 year mortgage. Since retirement age is 65, the broker must explain to the client on feasible ways on how to pay the remaining 5 years of mortgage. If at any event this has been skipped by the broker then it is obvious that there's indeed a mis selling of mortgage with the buyer.
With regard to cases where the buyer chooses a fixed rate of interest for the first Five years of the mortgage loan, it is obvious that the succeeding rate will be on variable and most likely will be higher than what the buyer used to pay. In this regard, the agent must assess the monetary capability of his client to prevent any unfortunate circumstance where it will be impossible for the buyer to settle the particular payment.
There might also be instances where the broker offers the buyer a sub-prime mortgage. Generally, this type of mortgage has a higher interest rate and is offered to buyers with poor credit rating or probably those having an income way beyond the required acceptable bracket. If at any event the buyer does not fall in this category and took a sub-prime mortgage then this is another proof of mis sold mortgage.
Evidently, the bottom line of mis sold mortgages is when the mortgage adviser vehemently disregards in providing the buyer the appropriate information for the purpose of just making a sale. Therefore if you feel that a mis selling had occurred in your case then it is your right to seek a legal advice to redress the issue.
Obviously, mis selling of mortgages occur when the mortgage broker fall short in giving the right and accurate advice to their clients about the financial commitment they are going to make. This is actually what the Financial Services Authority (FSA) imposed on all mortgage advisers which is to inform their buyers the right information about the amount of loan they are going to pay as well as provide the most suitable mortgage that will fit their buyer's needs.
In spite of the implementation, it has been observed that not all mortgage brokers take heed in following it which results to several reports of mis sold mortgages. Accordingly, the most typical misconduct that most brokers practice is falsifying the actual payslip of the buyer to make it seem high as a way to obtain a larger mortgage. Another is not asking for verification of buyer's occupation if he is self-employed nor has a second job. Worse is that these types of actuation by the mortgage brokers are carried out devoid of the knowledge of the buyer.
There are also cases in which the adviser allows a 50 year old buyer to take a 20 year mortgage. Since retirement age is 65, the broker must explain to the client on feasible ways on how to pay the remaining 5 years of mortgage. If at any event this has been skipped by the broker then it is obvious that there's indeed a mis selling of mortgage with the buyer.
With regard to cases where the buyer chooses a fixed rate of interest for the first Five years of the mortgage loan, it is obvious that the succeeding rate will be on variable and most likely will be higher than what the buyer used to pay. In this regard, the agent must assess the monetary capability of his client to prevent any unfortunate circumstance where it will be impossible for the buyer to settle the particular payment.
There might also be instances where the broker offers the buyer a sub-prime mortgage. Generally, this type of mortgage has a higher interest rate and is offered to buyers with poor credit rating or probably those having an income way beyond the required acceptable bracket. If at any event the buyer does not fall in this category and took a sub-prime mortgage then this is another proof of mis sold mortgage.
Evidently, the bottom line of mis sold mortgages is when the mortgage adviser vehemently disregards in providing the buyer the appropriate information for the purpose of just making a sale. Therefore if you feel that a mis selling had occurred in your case then it is your right to seek a legal advice to redress the issue.
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