Mis-sold Mortgages
Going back a couple of years, property prices were booming – making it difficult for many to obtain the mortgages required. As such many sought mortgages through brokers, resulting in mortgages taken through specialist lenders or sub-prime lenders.
The FSA have expressed growing concerns, banning numerous mortgage brokers from trading. Such brokers were merely concerned with generating commission for themselves, with little consideration for the repercussions of their actions. Many knowingly offered mortgages that were unaffordable, in some cases accepting self-certification without the supporting financial records.
The Financial Ombudsman Service (FOS) has predicted a steep rise in mortgage claims throughout 2010 – an anticipated increase in the region of 78%. Residential repossessions in the UK are monitored by the Council of Mortgage Lenders. It was reported in February 2009 that a staggering 40,000 people lost their property in 2008, an increase of 13800 on 2007. This figure is only expected to increase throughout 2010. This is attributed directly to people being unable to meet their mortgage repayments, resulting in defaults and ultimately repossessions.
There are other key factors which will contribute to repossessions, such as redundancy, unemployment and lenders becoming increasingly unwilling to lend. With current mortgage deals ending, many are finding it increasingly difficult to remortgage – often with disastrous consequences. At then end of 2008 it was reported that there were 219,100 mortgages in arrears of more than three months, an increase of 127,500 from the end of 2007. Again, these figures are only expected to increase throughout 2010.
If you feel you have been mis-sold your mortgage please fill in our online form on our home page.
