If you were advised to take out an investment designed to pay off your mortgage when it finished, did you later discover that you would not be paid out enough?
If so, this could constitute a mis-sold policy. Read our guide to mis-sold endowments if you think this could apply to you.
Interest Only Mortgages
If you were only paying the interest on your mortgage each month, then the advisor should have made you aware how you would repay your mortgage when it finished.
If your broker or lender didn't discuss this with you or give you examples of the cost of a Capital and Repayment mortgage compared to the lower costs of an Interest Only mortgage, then this would be an example of mis-selling.
Furthermore, was it explained to you that you may have to switch your mortgage to a Repayment mortgage rather than relying on rising house prices? If not, then this could also constitute mis-selling.
Use our template letter if you want to complain about being mis-sold an interest-only mortgage.
Remortgaging to clear your debts
If you were looking to consolidate your debts, were you advised that it would be cheaper for you to put all your loans, credit cards and finance onto your mortgage?
If not, you could be exchanging short term debts for a long term debt by adding it to your mortgage.
Did the adviser explain to you that although you would be lowering your monthly outgoings initially, you may well be lengthening the term of your debt and vastly increasing the amount of interest that you would be paying?
If not, this could be constituted as mis-selling.
Complain to your provider with our template letter if you were encouraged to remortgage to clear your debts.
- If your lender didn't discuss how you'd repay the rest of your mortgage at the end of an interest-only mortgage, this could constitute mis-selling
- If you were advised to remortgage your house as a way of consolidating your debts, that could count as mis-selling
- Did you pay unreasonably high fees to your broker? If so, this could also constitute mis-selling
- Find a mortgage broker with transparent fees
Household budget analysis
Were you asked to complete a household budget analysis? Were you asked how much your monthly income was, and what your monthly outgoings were?
Did they work out with you how much money you had left over each month after paying all your bills ie your disposable income?
If this wasn't done, you may have unknowingly over-committed yourself to a mortgage that you couldn’t afford.
Self Certification mortgages
Were you asked to provide evidence of your income, for example, payslips or audited accounts that could prove your income?
If not, were you encouraged to take out what is known as a ‘Self Cert’ or ‘Fast Track’ mortgage, where you didn't need to prove your income?
These mortgage products paid far higher commissions and were very popular among some brokers for that very reason.
If this applied to you, your mortgage may have been mis-sold.
Mortgages running past retirement
Is your mortgage due to run past your retirement age? Was this pointed out to you?
Did your broker or lender discuss how you would meet your mortgage payments once you were retired?
A good example of this would be if someone takes a mortgage out for 20 years at the age of 50.
The average age of retirement is at 65, which means there will be 5 years left to pay on the mortgage.
If at the time of agreement, the adviser didn't take into consideration whether the customer could afford to make the payments after the age of 65, then the customer may have been mis-sold their mortgage.
Use our template letter to complain if you think you've been mis-sold.
High broker fees
Did you pay unreasonably high fees to the broker or advisor that arranged your mortgage?
Were you made aware what the fees would be?
Were they added to your mortgage without you knowing so that you're now paying interest on them every month?
If any of the above applies to you then you may have a case of mis-selling and you might want to use our template letter to complain to your provider.
Which? Money Compare
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