Buying a house is the single biggest purchase many of us make and for that reason, house buyers rely on mortgage professionals to navigate the maze of mortgage options. It can be disappointing if you learn that you may have been let down by the advice you've received and that your mortgage may have been mis-sold.
A mis-sold mortgage could mean that you are trapped in your current mortgage, unable to move or rectify the problem. In more extreme cases individuals may face repossession of their family home causing massive upheaval and distress.
The reasons for mis-sold mortgages vary widely and each case is different. That's why here at Financial Recovery Solutions we have an expert team dedicated to identifying where mortgages have been mis-sold.
The Financial Services Authority (FSA), which was the regulator for the mortgage industry at the time, was so concerned about the potential harm caused as a result of poor practices that it conducted an in-depth review over several years.
(Source FSA Mortgage Market Review)
Nearly 50% of borrowers that took out a mortgage since 2005 are "mortgage prisoners" - they are stuck in their current mortgage unable to move because of arrears or low equity in their property.
Over 25% of regulated mortgages sold since 2005 go beyond the borrower's retirement age. This can cause severe difficulty for the borrower if they are unable to continue with mortgage repayments.
If your mortgage is with a sub-prime lender then you are 18 times more likely to face repossession of your property. Generally speaking, you should only be placed with a sub-prime lender if you have found it difficult to get a mortgage elsewhere.
75% of interest only mortgages have no repayment strategy in place. The FSA estimated that there are approximately 1.5 million interest only mortgages due for repayment over the next 10 years. An interest only mortgage may have been recommended to you when it was totally unsuitable for your circumstances.
All figures above show amount calculated after deduction of taxes and fees