Mis-sold Right to Buy Mortgages
The Council House Right to Buy scheme enables tenants having lived at the property for more than 2 years the option to buy their property at an appealing price. The level of discount depends on how long the tenant has lived at the property but generally the discount would be between 32% increasing 1% every year until the 60% maximum has been reached.
Right to Buy Mortgage Mis-selling Claims became more commonplace as the scheme expanded and became more and more popular. Mortgage brokers, seeing an opportunity to cash-in on the discounted price, would add on their own fees for arranging mortgages, which would usually be excessive. Solicitors were equally as guilty, some even falsifying quotes for home improvements in order to secure a larger mortgage which would cover their own excessive fees.
Right to Buy Claims is a relatively young concept but one which has proven results in gaining compensation for victims. Generally speaking, compensation amounts can potentially be up to £50,000 through the FSA Compensation Scheme but can be much higher if you have additional PPI policies that we can also claim for. The amount of compensation awarded is usually much less than in Buy to Let Mortgage Mis-selling cases but the advantage is that they are usually resolved much quicker because many of the solicitors who dealt with this type of mortgage are still trading, hence making it much easier to gather the necessary files – something that solicitors are legally obliged to provide upon request thanks to the Freedom of Information Act.
Do you think you are eligible for a Right to Buy claim? Did you ever wonder why the fees involved were so high? If so, fill out the form below to start your claim today!
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