During times of economic prosperity, mortgage lenders loosened the restrictions on mortgages and provided them regardless of borrowers circumstances. Normal criteria such as employment status or credit history were overlooked, leading to them being accepted for loan agreements they could not afford.
MKB Law can help you investigate instances of mortgage mis-selling where you have felt you were given mis-leading advice or did not have the details of your agreement explained in enough detail.
Interest Only Mortgage
Interest only mortgage gives you a cheaper monthly payment on your home loan but do not actually involve you paying back any of your debt. In these set ups the payments you make cover only your interest rates and at the end of your payment term you will owe the lender the amount that you borrowed.
In many cases bankers and borrows did not fully explain this set up or discuss the payment agreement and this would constitute mortgage mis-selling. If as a borrower you were not made aware of these details you may have been a victim of mortgage mis-selling.
Self Certification Mortgage
Self Certification Mortgage is a mortgage that has been set up in which you do not have to provide any evidence of income. These mortgage agreements are usually reserved for the self employed or those looking to fast track their mortgage but if you were sold an agreement like this without providing any details of your income you may have been mis-sold a mortgage.
These agreements saw higher commissions for brokers and were often sold in situations that were not appropriate.
Broker fees are fees charged to the borrower for consulting with a mortgage broker. They are usually charged for two reasons:
1. The broker has provided consulting services for HR, safety or the provision of certificates
2. Your account is not big enough to generate enough commission for the broker to see profit
If you were not made aware of these fees or paid an unreasonably high rate it is advisable that you speak to a mortgage mis-selling solicitor. We have also seen instances where these fees have been added to a mortgage without the borrowers knowledge and again this would be regarded as mortgage mis-selling.