Just when we thought mis-sold Payment Protection

Just when we thought mis-sold Payment Protection Insurance policies (PPI) was enough, there seems to be a new kid on the block, mis-sold loans.

Since the big bang of the 1990's brokers and sub-prime lenders emerge everywhere pushing mortgage and secured loan products to those people with sub-standard credit. These products tended to carry bigger interest rates, higher charges and also compensated large commissions to the salesman simple great for them, not good for the consumer!

Typically the Financial Services Authority now has broker offered mortgages in their signs and cases management companies are hot on their tails for the big thing.

However, if like many people you have a mortgage, it is important you realize the various regulations laid down from the Financial Services Authority to check whether you have been mis-sold, as simply being cantankerous at your interest-only endowment not paying out enough to cover your shortfall is just not enough grounds on its own.

In short, a home loan is said to be mis-sold if it was not sold in the right manner. This could be because you received a product that was not suitable or you acquired the wrong advice from the lender. Here is the starting point for the Financial Services Authority that happen to be now allowing people to make claims in many areas. The following are guidelines to enable to ascertain whether you have a mis-sold mortgage.

Explanations why Mortgages are Mis-sold

There are various explanations why mortgages are usually mis-sold. In most cases, brokerages or lenders will mis-sell a home loan in order to make more money without considering the customers conditions. In many cases, brokers only had usage of certain lenders products offer minimal mortgage products. There are known as "tied brokers". This is a good indication that they were not best in the market and were therefore unable to offer you the right mortgage that will suited your circumstances

How Tell That the Mortgage Was Mis-sold

There are many methods for you to tell if your mortgage was mis-sold or not. Here are some of the major reasons that may indicate a mis-sold home loan:

- If you were or are unable to meet up with your mortgage payments and your adviser would not carry out checks as to your cost.

-You were or are still spending money on your mortgage after retirement and there are no systems in place to keep up the particular repayments.

- You started having a fixed term product and you had been never informed about an increase in repayments after the fixed term ended.

- Where you are re-mortgaged to clear payment protection insurance claims existing money, but you were unaware about trying to repay more interest than you originally necessary to.

-You were sold a subprime mortgage and you had no prior credit problems.

-The sales consultant recommended a certain mortgage without checking out your financial circumstances or you never required such as sub-prime mortgage with a larger interest rate.

One of the major reasons mis-sold loans came about was due to many agents and lenders do not assess buyers circumstances well. This leads to poor help which consequently results to poor mortgages being offered and leaving customers inside poor financial situation.

Are You Entitled To a Compensation?

If you find yourself having problems paying your mortgage, did not get the best deal or perhaps you feel that your broker did not hold with the Financial Services Authority laws, then you can file a claim. If you earn, you should receive compensation equal to roughly the same as what you have paid, against what you would have paid if you had the correct advice in the first place.

Steps to make Your Claim

In order to file the claim, you will have to consult a reputable maintain management company to apply a Subject Entry Request (SAR). This allows them to receive all the documentation relating to you home loan. After receiving the documents, the company will submit a complaint to your loan company or broker. Times can vary via weeks to months, on average concerning 20 weeks should be expected. In some instances the mortgage broker may reject the claim. However, if it is established that the claim was wrongly rejected, the claims firm will take the claim directly to the Financial Services Authority. The process may take a further 6-12 months.

However, nothing ventured, almost nothing gained and always hope for a great ruling.

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