With billions of pounds in compensation having already recently been paid out to the people who were mis-sold payment safeguard insurance (PPI), claims management businesses are now arranged to turn their attention to the mis-selling of mortgages. best ppi claim company
Many companies believe mortgages are the next mis-selling scandal and assume that large mortgage customers could be due thousands of pounds in compensation. Yet , regulators believe the vast majority of mortgage customers have been advised appropriately and that mis-selling claims are highly unlikely to bring about a compensation payout.
Says management companies believe large mortgage clients may be due compensation
The Mom or dad newspaper reports that a volume of claims management companies are soon to launch websites and TV advertising marketing aimed at targeting credit seekers who think they might have been mis-sold a home loan.
While the advertising will mostly pay attention to ‘interest only’ mortgages, claims companies will also be focusing on borrowers of other types of mortgage. This really is despite warnings from lenders and also from the Economical Ombudsman Service (FOS) who say that such promises are incredibly unlikely to do well.
Claims management companies believe a huge number of men and women who took out interest-only home loans weren’t subject to satisfactory checks on the repayment vehicle that they had or should have had in position. Some home owners may certainly be facing large debts at the conclusion of their mortgage term, when they would have expected to forked out off the financial debt entirely. The overall value of claims could be similar to that for repayment protection insurance.
Some lenders have already abolished ‘interest only’ loans and many have tightened the conditions to take out a mortgage loan on this basis. On the other hand, the recent mortgage market review by the Monetary Services Authority did not ban this type of loan and many high net worth finance customers use interest only financing to good effect.
The Guardian reports that promises management companies are already fighting among themselves for what they perceive to be future mis-selling business and some businesses are believed to be starting major initiatives around mis-sold mortgages towards the end of 2012. However, unless a company can demonstrate that the individual they are symbolizing has endured a real loss then there is no claim to be made.
A spokeswoman for the Council of Mortgage loan Lenders says: “We highly assume that the overwhelming vast majority of mortgages have recently been sold and administered based on [FSA] requirements.
“If a borrower thinks they have a legit reason to feel that the standards were not attained, then we would need those to follow up their concern with the broker or lender who sold them their mortgage. In the event they remain dissatisfied, the Financial Ombudsman Scheme can decide whether we have a circumstance to answer. ”
Nevertheless , in many cases, interest only loans have recently been recommended to clients for good reasons. Many large mortgage clients require the overall flexibility of an interest only home loan because they have a variety of repayment plans set up. While there may be isolated cases of mortgage loan mis-selling, it is less likely that claims management companies should be able to succeed with hundreds of claims as they have with PPI.