In these days, you can find alot more pain for homeowners as mis-sold mortgages increase every year. Mis-sold mortgages were because of the greediness of many loan companies, desirous to increase their market share. At the same time, this became also the easy way to receive commission and fees for the mortgage brokers.
This had been mainly experienced in the specialist of sub-prime mortgage market all over the country.
A very important decision must be made correct at first. Everything must be done to make sure that you, as the borrower, are offered the mortgage loan that is best for you by the qualified mortgage advisor who must, legally, treat you as a customer fairly.
On November 2004, the scale of mortgages started to be regulated by the Financial Services Authority under a strict set of policies referred to as Mortgage Code of Business (MCOB). This set of guidelines detailed a strict process for the mortgage sale. However, there were various breaches of MCOB which have related to the various reasons for mis-sold mortgages problems. These include large fines for inadequate record keeping, the sale of self-certification mortgages, in particular to employed applicants have been acknowledged as a significant problem.
There are a number of circumstances that can constitute mis-sold mortgages and may help you determine if you have one. Brokers normally used mortgage packagers who carried out credit reference agency checks to advise the brokers on product selection for every applicant. However, this process has also triggered breaches of the Data Protection Act. Furthermore, incorrect products were recommended from the limited selection of lenders.
Mortgage lenders who have mis-sold mortgages are Accord, Advantage, Mortgage PLC, Kensington, GMAC, GE, Platform, Preferred, Rooftop and Future Mortgages. These are examples of sub-prime specialist lenders. Others like Northern Rock and Bristol and West are also lenders who may have been mis-sold mortgages to their borrowers.
Mis-sold mortgages have affected thousands of homeowners in the United Kingdom. The Financial Services Authority (FSA) has expressed its concern and already fined numerous lenders and mortgage brokers for not treating their customers fairly. This actions of the FSA does not only apply to the sub-prime mortgages and loans, it could also be applied to other sorts such as buy to let, right to buy, purchases and remortgages.
There are many more breaches that constitute a mis-sold mortgage. A vey important issue that you need to ask yourself is “did your mortgage broker or lender treat you fairly by giving you the most suitable advise in getting a mortgage loan?” Treating customers fairly doesn’t mean the same as mortgage brokers and lenders being nice to clients or creating satisfied clients, it’s labeled as a breach where there is failure by a firm to pay due regard for the interests of its customers and deal with them fairly.