Throughout the property boom, many mortgages were sold to borrowers without any consideration if they could afford the repayments.
An interest-only mortgage lets borrowers only pay off the interest of their mortgage. This meant that many were sold with little regard for how borrowers would repay the remaining capital, the actual borrowed amount, at the end of the mortgage term.
The problem with interest-only mortgages
Many borrowers were advised to take out interest-only mortgages but there was no consideration as to how they would repay the final borrowed amount at the end of the mortgage term. This was ultimately a mis-sold mortgage as it meant some borrowers had their homes repossessed.
Examples of negligent mortgage advice
You may have been mis-sold a mortgage if:
- There were other mortgages on the market which were more suitable that you were not advised about.
- You were not advised of the consequences of purchasing an interest-only mortgage and no advice or consideration was given to how you would repay the outstanding capital at the end of the mortgage term.
- You mortgage term runs into your retirement and no consideration was given as to how you would afford the mortgage payments during your retirement.
- You were not provided with certain mortgage illustrations or key fact documents prior to entering into the mortgage.
- You were advised to take out a new mortgage and so incurred exit fees but a remortgage would have been cheaper and more appropriate;
- Your mortgage advisor received commission for advising you to take out a particular mortgage (which may have impacted on their decision to recommend a particular mortgage product to you) and you were not advised about the commission.
If you believe your mortgage was mis-sold to you or have any questions, get in touch with us on 01924 457171 for a free consultation.