On 1st November 2004 the FSA took over responsibility for the regulation of mortgage lending and advice in England & Wales, introducing a new set of rules for lenders and brokers, the rules governing the sale of mortgages state that lenders and brokers must ensure that the mortgage is affordable, not only at the time of sale, but throughout the whole term of the mortgage, even if that means into retirement.
It is estimated that 1.9 million people have been mis-sold an Interest Only Mortgage and were given bad advice from a Broker. A Broker’s failure to comply with high level principles and MCOB rules means regulatory action could potentially be taken against them under the FSA Services and Markets Act.
It has been found that many advisers and lenders are not following the rules and mis-selling Interest Only Mortgages. If you were sold an Interest Only Mortgage after October 2004, there is a strong possibility you could have suffered from your mortgage being mis-sold to you.
You may be entitled to compensation.
The rules governing the sale of mortgages state that the lenders and brokers must ensure that the mortgage is affordable not only at the time of sale but throughout the whole term of the mortgage, even if that means into retirement.
If it can be established that the mortgage was mis-sold then you may have a claim for losses from the start of the mortgage to date, and through to the full term of the mortgage.
You can still claim if:
- The company or adviser who sold you the mortgage isn’t trading anymore; it may still be possible to make a claim against the Financial Services Compensation Scheme (FSCS).
- You don’t currently own the property that was mortgaged
- You had a joint account with someone you no longer live with, each person may be entitled to compensation.