In these days, you can find more pain for the homeowners because mis-sold mortgages increase each year. Mis-sold mortgages were because of the greediness of the many lenders, wanting to increase their market share. At the same time, it was also the easiest way to gain commission and fees for the mortgage brokers.
This has been mainly experienced in the specialist of sub-prime mortgage market everywhere.
A very important decision must be made proper at first. Everything has to be done to ensure that you, being a borrower, are given the mortgage that’s best for you by a qualified mortgage advisor who must, by law, deal with you for a customer fairly.
On November 2004, the size of mortgages became controlled by the Financial Services Authority under a strict set of rules known as the Mortgage Code of Business (MCOB). This set of rules detailed a strict process for the mortgage sale. However, there are many breaches of MCOB which have related to the various reasons for mis-sold mortgages complaints. These include large fines for insufficient record keeping, the sale of self-certification mortgages, specifically to employed applicants has been recognized as a significant problem.
There are a number of circumstances that can constitute mis-sold mortgages and can enable you to determine whether you have one. Brokers usually used mortgage packagers who carried out credit reference agency checks to advise the brokers on product selection for any applicant. However, this process has also lead to 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 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 currently fined numerous lenders and mortgage brokers for not dealing with their clients fairly. This action of the FSA does not simply affect the sub-prime mortgages and loans, it could also be applied to all other types 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 question 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 customers, it is classified as a breach where there is failure by a company to pay due regard for the interests of their customers and deal with them fairly.