Litigation solicitors deal with compensation claims for mis-sold mortgages, assisted by a network of qualified actuaries, barristers, financial advisors and insurance experts who work together as a specialist team to give advice and to settle claims. Most mortgage solicitors deal with these claims using the no win no fee scheme wherein the mortgage solicitor is only allowed to charge legal costs if the claim is won and compensation is paid. If the mis-sold mortgage compensation claim is unsuccessful for any reason, using the no win no fee scheme, the mortgage solicitor will make no charge to you whatsoever. You should not be asked to fund or finance your mis-selling compensation claim in any respect. Most clients never pay any charges unless the mis-selling compensation claim is settled successfully. Mortgage solicitors usually charge on an agreed percentage basis which is put in writing prior to acting on your behalf. If you would like to speak to a mortgage solicitor about mis-selling just contact an expert financial claim lawyer who will discuss your potential mis-selling claim on the telephone without any further obligation.

Categories of Complaint

To succeed in a an application for mis-selling compensation it must be shown that the policy was mis-sold which in general terms means that the seller of the financial product either provided inadequate or misleading information or failed to obtain adequate information to ensure that the financial product was right for the person buying it. The basis of a mis-selling complaint is regarding whether proper financial advice was given and in particular whether you were warned of charges and risks. The main categories of complaint for a mis-sold mortgage are as follows :-

Suitability of the mortgage:-

Your financial adviser should have made sure that the mortgage that was sold to you was the right one based on current and anticipated financial circumstances and the buyers attitude to risk given that the value of property may go down as well as up or may simply stagnate. Items which may indicate unsuitability include:-

           failure to explain about the property market and the risks involved in investment in real property

           failure to consider your personal circumstances

           failure to consider the effect of retirement on repayment ability

           failure to advise that a mortgage is a long-term commitment and may attract penalties if cashed in early

           failure to ensure that you were aware of stock market risks if you coupled your mortgage with an endowment policy

           failure to explain fees and charges

           failure to provide a document detailing fees and charges and their effect

           failure to complete a personal fact-find

Policy Churning

   Policy Churning for Endowment Mortgages :-

       If an adviser suggested cashing in an old policy and taking out a new policy then he is guilty of ‘churning’ the only advantage of which is that the advisor receives a higher commission than he might otherwise have received if he sold just a top up policy. Generally speaking the effect of churning is to leave the client’s funds depleted.