At the start of 2001 the property market was in full swing, with house prices growing month on month. Mortgage finance was freely available with many new lenders coming to the market. Many consumers became the victims of mortgage mis selling.
With the market being so buoyant there was a large influx of new brokers due to the regulation being a voluntary code, meaning almost anyone could become an broker. These brokers acted as intermediaries to the lender and it was their job to correctly evaluate your circumstances and recommend a suitable lender, based on your needs.
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During this period the number of mortgage transactions was at an all time high, with a large percentage of the deals arranged through brokers. You would think that as these brokers were advertising as being independent and offering to secure the best deal for you, there would be no problem.
This was not the case as often mortgages were mis-sold, ensuring you got the deal that paid the broker the most commission.
1st November 2004 was a landmark date when the Financial Services Authority took over the regulation of these types of home loans. You would think that this put a stop to the bad advice. Well you would be wrong!
Lately the Financial Services Authority have become increasingly concerned with the level of mortgage mis-selling. You only have to read the financial press at the moment and you will see brokers banned every week. Large compensation payouts have been awarded to the victims of bad advice and you are strongly encouraged to seek the assistance of a specialist claims management company to help settle any claim.
Find out today if you have been the victim of bad mortgage advice.
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