Financial Adviser & Mortgage Broker Negligence

Claims against financial advisers (including IFAs) and mortgage brokers are increasingly common, particularly in the area of financial mis-selling.

Mis-sold mortgages

It is widely publicised that during the property boom, many mortgage advisers and brokers negligently advised people to purchase mortgages which were unsuitable for their circumstances. As a result, thousands of people were sold inappropriate and unsuitable mortgages, which resulted in many people being unable to afford their repayments and even having their homes repossessed from mortgage lenders.

There are therefore thousands upon thousands of people in the UK who have been mis-sold a mortgage by negligent brokers or lenders. If you are one of those who has been burdened with an inappropriate or unaffordable mortgage as a result of negligent advice, you may be entitled to compensation.

Our professional negligence solicitors are experts in mis-sold mortgage compensation claims and may be able to act for you on a no win no fee basis, so you would not pay anything if your claim was not successful.

How Do I Know If I Have Been Mis-Sold a Mortgage?

There are many grounds for bringing a claim against your mortgage broker or lender. Examples include:

  • the mortgage runs into your retirement and affordability was not discussed with you including pension capabilities;
  • there may have been other mortgages on the market which were more suitable which was not discussed with you;
  • the applicable charges, commissions and penalties were not explained to you;
  • you were not advised of the consequences of purchasing an interest only mortgage and/or a capital repayment vehicle for an interest only mortgage was not discussed with you;
  • you were not provided with a Key Facts document, Mortgage Illustration, a Suitability Letter, Initial Disclosure documents, a Statement of Pricing or a Statement of Demands and Needs;
  • the mortgage seller, adviser or broker failed to do a "fact-find" to understand your full financial situation to ensure the affordability and suitability of the mortgage for you;
  • you were advised to cancel an existing mortgage and take out a new mortgage rather than simply extending the old mortgage, incurring high commission fees and high early redemption penalties.

There may be other grounds to bring a mis-sold mortgage compensation claim.

The Financial Conduct Authority ("FCA") Regulations

www.fca.org.uk

Mortgage brokers and advisors are professionals who are regulated by the FCA and any advice given by them must comply with the FCA regulations including “treating customers fairly” and they must also comply with the "Mortgage and Home Finance: Conduct of Business" ("MCOB") Rules which state that mortgage advice must be "suitable for the customer" and that mortgage advisers "must make and retain a record" of that advice being suitable.

Section 150 of the Financial Services and Markets Act 2000 provides that a person who has been given mortgage advice which is unsuitable and inappropriate and who has suffered  financial loss as a result of this advice, may bring a claim.

Limitation

There are time limits to bring a professional negligence claim. You have 6 years from the act of negligence or 3 years from the date of knowledge to start court proceedings for a claim for professional negligence. The test for ascertaining the date of knowledge is when a reasonable person ought to have realised that there was a risk that negligence had occurred. There is a long stop date of 15 years from the act of negligence after which a claim may not be brought regardless of the date of knowledge. If you do not bring your claim in time, then your claim will usually be lost forever.

Free Initial Consultation

If you feel you have been given negligent advice in respect of your mortgage, please contact us for an initial consultation now. Our solicitors are available to discuss the circumstances surrounding your mortgage. Following this initial consultation we can advise you of the next steps we consider are appropriate in your circumstances. We can make a request to the lender, adviser and/or broker for information about your mortgage and the advice given. This may show that the advice they gave was insufficient or bad advice which may then enable you to bring a claim for compensation.

How Can I Pay for My Claim?

We offer cost-effective legal solutions to meet your needs. There are many ways of funding your claim. Depending on your circumstances, we may be able to offer a conditional fee (or no win/no fee) agreement. Note, however, the position where the mortgage broker or adviser no longer exists...

Mortgage broker or adviser no longer exist?

Where the mortgage broker or adviser no longer exists, you may still have a claim with the Financial Services Compensation Scheme ('the FSCS'). However, as the FSCS do not reimburse legal costs, you would not be able to recover these if you instructed us to act for you in such a claim. We would therefore not be able to act for you under a CFA ('no win, no fee agreement') and could only act for you under an Private Retainer (Hourly Rates) (see here for more on these funding options).

See If You Can Claim Now

Simply call our specialist professional negligence solicitors on 0330 134 2582,  e-mail us at enquiry@sethlovis.co.uk or complete an online enquiry form to discuss whether you have a mis-sold mortgage compensation claim.

 

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