Many homeowners who are now having dilemma of having their property getting 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 broker and therefore eligible for compensation.
This is just what the Financial Services Authority is hoping to avoid. Thus, it was enforced to all mortgage advisers to provide the buyer appropriate information regarding the mortgage loan they intend to take. The particular monetary capacity of the client must be taken into consideration to allow him to secure a ideal mortgage to fit his type.
However, it has been viewed that some brokers do not comply with the proper ethics the FSA implements thus resulting in mis sold mortgages. The most common flaws committed by mortgage adviser deals with the income and occupation of the buyer. This occurs when the broker does not ask for the payslip of the client. If this is the case then it is more likely that the broker must have falsified the income of the client and makes it appear high to get a larger mortgage. Other situation is that the broker never asks for proof about the occupation of the buyer whether they are self- employed or have a second job. Apparently, fraudulently documents must have been submitted by the broker without the knowledge of the buyer.
Other visible reason that can prove mis sold mortgages happened was when the mortgage agent misinformed the buyer to obtain a 20 year mortgage when he is already Fifty years old considering that the retirement age is actually 65. To begin with, a reasonable guidance should have been shared with the client on how he would manage to pay the last remaining 5 years of the mortgage.
For situations where the buyer chooses a fixed interest rate for the first 5 years of the mortgage, it is obvious that the succeeding rate will be on variable and most probably will be higher than what the buyer used to pay. In connection with this, the agent should evaluate 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.
This is just what the Financial Services Authority is hoping to avoid. Thus, it was enforced to all mortgage advisers to provide the buyer appropriate information regarding the mortgage loan they intend to take. The particular monetary capacity of the client must be taken into consideration to allow him to secure a ideal mortgage to fit his type.
However, it has been viewed that some brokers do not comply with the proper ethics the FSA implements thus resulting in mis sold mortgages. The most common flaws committed by mortgage adviser deals with the income and occupation of the buyer. This occurs when the broker does not ask for the payslip of the client. If this is the case then it is more likely that the broker must have falsified the income of the client and makes it appear high to get a larger mortgage. Other situation is that the broker never asks for proof about the occupation of the buyer whether they are self- employed or have a second job. Apparently, fraudulently documents must have been submitted by the broker without the knowledge of the buyer.
Other visible reason that can prove mis sold mortgages happened was when the mortgage agent misinformed the buyer to obtain a 20 year mortgage when he is already Fifty years old considering that the retirement age is actually 65. To begin with, a reasonable guidance should have been shared with the client on how he would manage to pay the last remaining 5 years of the mortgage.
For situations where the buyer chooses a fixed interest rate for the first 5 years of the mortgage, it is obvious that the succeeding rate will be on variable and most probably will be higher than what the buyer used to pay. In connection with this, the agent should evaluate 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.
About the Author:
Looking for a mortgage company to help you in mis sold mortgages in UK, then have a look at www.mis-sold-mortgages-uk.co.uk
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