Right to Buy Mortgage Mis-selling
Are you a victim of poor Right to Buy mortgage advice or high arrangement fees?
Did you use a mortgage broker to assist in buying your council home under the Right to Buy scheme in the last twelve years? An investigation by the financial regulator has lead to many broker firms being fined for not providing proper advice or explaining the various types of deals and schemes available to you. You may have been mis sold your right to buy mortgage because you received poor advice and were allowed to borrow money than was hard to repay. Ask yourself these questions:
- Did you purchase your council house under the Right to Buy scheme?
- Did you use a broker? You may have been poorly advised.
- Did you pay the broker a large fee, which was added to the mortgage?
Take the mis sold Right to Buy Mortgage test today »
Mortgage advisers would often add on high fees for arranging the loans. Solicitors were equally as guilty, some even making-up quotes for home improvements in order to get a larger mortgage for the applicant, which would cover their own high arrangement fees.
The Council House Right to Buy scheme gives tenants having lived at the property for more than 2 years, the option to buy their property at a discounted price. The level of discount depends on how long the tenant has lived at the property but generally the discount would be between 32% increasing 1% every year until the 60% maximum has been reached.
Right to Buy Mortgage mis selling claims are relatively new in the UK, but one which has proven results in gaining compensation for victims. Compensation amounts can potentially be up to £50,000 through the Financial Services Compensation Scheme (FSCS) but can be higher if you have been mis-sold Mortgage Payment Protection Insurance (MPPI) policies.
The amount of compensation awarded is usually lower than in Buy to Let mortgage mis-selling cases, but the advantage is that they are usually resolved much quicker because many of the solicitors who dealt with this type of mortgage are still trading, hence making it much easier to gather the necessary files – something that solicitors are legally obliged to provide.
Do you think you were mis-sold your Right to Buy mortgage? Did you ever wonder why the fees involved were so high?
