Mis Sold Mortgages - Who Is Eligible For The Claim?

Currently mis-sold mortgage claims are generating one of the biggest claims after the accidental claims and are likely to do more damage to the housing societies and banks who first sold them.

If you do have a mortgage then the legislation provided by the FSA (Financial Service Authority) needs to be checked to ensure that you were not mis sold a mortgage on your property.

Initially insurance companies and banks used independent financial advisors for selling such products but now signs are really bad if you study the current information on this count. Several of these mortgages that were mis-sold by these financial advisors were actually responsible for the current economic crises. In case, you hold any such mortgage, you are fully entitled to claim the compensation from a bank or other financial organization that issued this mortgage to you. This option should be explored as it may provide substantial benefits financially to you.

A Mortgage Code issued by FSA in 2001 has stipulated tough guidelines for the banks, financial organizations and building societies for issuing mortgages. Now it appears that many of these financial institutions had broken several rules and are liable for claims from the house owners who are becoming aware of the problems arising out of mis sold mortgages.

The FSA's Mortgage Code was replaced by the Mortgage conduct of Business, to ensure the proper updates of the rules and it does offer better protection to people who were interested in purchasing a home by using a mortgage to complete the transaction.

To be safe, it will be worth checking with a solicitor to ascertain if the mortgage on your property was sold properly. Few other important questions that you should seek answers for are - are you in negative equity from taking out you current mortgage or have you been advised to switch to a new lender by a financial advisor?

Such mortgage claims can turn out to be very expensive for already beleaguered financial institutions and banks that are reeling after sub prime crises in past few years.

The main reason for the investigation of all these mis-sold mortgages is that the financial condition of mortgagee may have become worse after this transaction than before. An example being, old loans and credit cards, if payed off from proceeds of a new mortgage, then interest would still have to be payed off from these debts for may years. Instead it would have been better if he had paid the debt using his income because mortgage will accrue interest only for the exact value of property purchased by him.