Mis-sold Residential Mortgages
Residential Mortgages are the most common type of mortgage in the UK. This particular financial product is used for purchasing family homes and property that will be your main place of residence as opposed to mortgages specifically to make money eg. Buy to Let Mortgages. It is important to remember that, although there is a tendency to think of a mortgage as something different, at the end of the day it is just a loan, albeit a large one.
They make up the largest share of the mortgage market so we’re the obvious target for Sub-prime Mortgage Lenders who saw an opportunity to sell as many mortgages as they could in as little time as possible. For most lenders, the regulations brought into practice in November 2004 by the FSA were adhered to most of the time, for some it was almost seen as a ‘Cash Cow’.
Mortgage Brokers would Mis-sell Mortgages, often with the full understanding of the lender. This does not clear the lender from wrongdoing, far from it. The Mortgage Lender should be doing their own checks both on the Mortgage Broker and, to a lesser extent, on the borrower.
Residential Mortgages, unlike other Commercial Mortgages, are the option for the less-experienced property buyer because of their very nature. This means that home buyer would need to depend heavily on being correctly advised by an unbiased professional working in their best interests. This is another reason why it was easier to Mis-sell Residential Mortgages and gives an indication of why and how Mortgages were Mis-sold.
In recent months we have heard real horror stories about how Residential Mortgages have been Mis-sold. Most of our clients contact us because they are in financial difficulty due to the fact they were offered a mortgage that they could not afford or they have ended up with a property that was different in some way to the one they thought they were purchasing. The broker and lender are obliged to ensure that all of their customers can only borrow within their means. Similarly, solicitors and surveyors have a duty of care to carry out the necessary work in a professional manner that will make your purchase more secure.
If you feel you have been Mis-sold a Residential Mortgage by a Mortgage Broker, Mortgage Lender, Conveyancing Solicitor or Surveyor please complete the form below, we’ll call you back and you could be claiming back thousands in no time!
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