Mortgage Claims in General

From 31st October 2004 legislation was passed to regulate mortgage advice in the UK.

Whilst many people know that there is the Financial Services Compensation Scheme (FSCS) to protect savings should a bank or building society fail, it is not generally known that since 31st October 2004 the scheme also provides protection against unsuitable mortgage advice. Nor is it common knowledge as to what denotes unsuitable mortgage advice and therefore a successful claim for compensation. If you lose money as a result of being advised to take a mortgage (or re-mortgage), or you secure what was previously unsecured debt to your residential property, then you could be eligible for compensation. In fact, the FSCS has experienced a rise in the number of claims for mortgage compensation in recent years, resulting in £18 million being paid out during the 12 months leading up to April 2018.

There are a number of scenarios that have proven unsuitable, particularly:

• Advice to re-mortgage residential properties on an ‘interest-only’ basis, to raise funds to invest in high risk property and land schemes, in the UK and abroad. Click here for more information……

• Advice to re-mortgage residential properties on an ‘interest-only’ basis, to raise funds to debt consolidate loans, credit and/or store cards. Click here for more information……

Other situations where compensation could be sought include: when someone has not been advised about different types of mortgages available; if the specific details of a mortgage were incorrect; if someone has been advised to switch mortgages but not given an adequate explanation of why the switch was being made; or if someone was advised to take out a lifetime (equity release) mortgage that was unsuitable.