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Recent studies have shown that most people fail to read the small print when taking out many financial products, including mortgages. Unfortunately in recent years many lenders have taken advantage of this by mis-selling products to customers that do not suit their needs. For example, many people who took out endowment policies to pay off their capital at the end of the term, found that their investments would not cover the amount needed to fully pay their mortgage. It can be overwhelming when taking out a mortgage, with so many different options available, but it is up to the lender to ensure they have outlined exactly what you are paying and if you choose an interest only mortgage, what that entails and how you can pay off the capital at the end of the term. If you are not given the right information or comparisons between costs or repayment mortgages against interest only then you could have been mis-sold your mortgage.
There are also ways to consolidate your debts, which could include credit cards, loans or other finance onto your mortgage by remortgaging. But in some cases, lenders have given wrong information or failed to tell you about cheaper options which has resulted in many people extending the term of their loan and paying increased interest. If you have been advised incorrectly when remortgaging, you could also have been the victim of mis-selling.
If any of these apply to you or you are uncertain, the first thing you can do is speak to your lender and find out if you can change your plan to something more suitable as well as claim back additional interest or fees already paid. There are many online sites that can give you tips and information on how to make a complaint if you feel you have been mis-sold any financial product. In worst cases, mis-sold mortgages or remortgages could result in you being unable to pay your monthly repayments and putting you at risk of losing your home. You may need to consider a quick house sale to avoid your home being repossessed and if this is the case you could be entitled to compensation.
If you feel you paid fees to a broker that were unreasonable, you could also claim back compensation due to mis-selling. And if the lender did not go through your income and expenditure thoroughly in order to calculate what you could afford, you may well have been sold a mortgage that was unaffordable, committing to something they were aware you couldn’t afford. This is one of the most common issues within recent years causing many home owners to lose their homes through repossession. Up until recently, Self Cert mortgages were available to self-employed people or anyone who couldn’t prove their income as it didn’t require proof of income, but unfortunately lenders didn’t always check income details thoroughly, again mis-selling products to individuals which constitutes as mis-selling. If you feel you are not satisfied with the response from your lender regarding mis-selling, you can also contact the financial ombudsman as well as get advice from a solicitor or independent advisor.
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