March 11, 2011
There are a lot of people in the country who think and believe that they were a victim of a scam called mis-sold mortgage which is very popular nowadays. There are millions of people who dreamt to have their own homes and properties. However a lot of these made a decision to pull out a mortgage loan to fulfill their dreams. At first, they thought that they pulled out a proper and suitable loan for them, after a few months, the problem started to show up. They are having a hard time settling the payments and fees for the particular loan they pulled out. They discovered that they were among the thousand victims of the said fraud.
Because of this problem, the people went to the Financial Ombudsman’s office to file their mis-sold mortgage complaint to the particular mortgage brokers and lenders. They stated that the mortgage brokers encouraged them to change some important facts on their mortgage application form which will be the basis on how much loan you can have from the financial institution. The mortgage brokers particularly asked their clients to inflate their regular monthly incomes so that they can have a higher loan. The mortgage broker did not warn them that even the slightest changes in application forms can ruin their futures. Many victims stated that they lost their homes because the financial institution has to repossess their homes because they can not afford to pay the monthly fees that the mortgage loan had caused them.
January 17, 2011
A lot of home owners in the United Kingdom consider mis-sold mortgage as a major problem. The greediness of major financial institutions and their brokers is a major factor to this problem. Commissions of brokers or advisers are quite big if the company can approve the loan for you. Over a number of years, mis-sold mortgages became a serious problem and it’s only now that most of the people became aware to it and how serious it was due to the number of claims that the Financial Ombudsman is dealing with.
The Financial Services Authority set guidelines referred to as MCOB to control the increasing number of complaints regarding mis-sold mortgage in 2004. Proper guidelines where given to the brokers or lenders to give the respective clients detailed advice in giving loans. But, that guideline does not really worked properly, or maybe, some brokers ignored those guidelines foe their own good. They violate the rules and regulations in order for them to selfishly earn money, not thinking of the burden that the clients will face in the near future.
Many home owners felt that they received an unfair and bad advice which is not suitable for their needs and circumstances. And on the other hand, they where also asked to buy a PPI policy account and the cost will be added on top of the loan. Many financial companies are fined by the Financial Ombudsman because of violating the rules and regulations they implemented. Claims and complaints are being filed against companies that do not follow the rules, and the Ombudsman was really concern to it.