Mis-Sold Interest-Only Mortgages Could Be ‘The Next PPI’
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Thousands of borrowers on interest-only mortgage deals in the UK could pave the way for the next big compensation saga following on from PPI claims, according to finance industry experts.
Lancashire UK, March 30, 2013 / Press Release
Thousands of borrowers on interest-only mortgage deals in the UK could pave the way for the next big compensation saga following on from PPI claims, according to finance industry experts.
There has already been confirmed redress payments made for mis-sold interest-only mortgages but it is believed compensation paid so far is merely the tip of the iceberg with the number of claims expected to soar in the coming months.
Interest-only loans – where the borrower repays none of the capital and just the interest – have come under scrutiny recently after Martin Wheatley, the former director of the Financial Services Authority (FSA), described them as a “ticking time bomb”.
Scott Sheedy, managing director of Hardwick Financial, believes awareness is increasing and people are increasingly exploring their eligibility to claim.
“Mis-sold mortgage claims are still in their infancy but already we’re seeing a constant rise in enquiries,” said Mr Sheedy.
“Interest-only mortgages are the core of the mortgage mis-selling market; many borrowers were not subject to checks that would have clarified whether they would have the means to repay the debt at the end of the mortgage term.
“Furthermore, it’s apparent that many mortgage borrowers who would have qualified for lower interest rates were never offered them,” Mr Sheedy added.
Research by xit2, the asset management data firm, has shown that of 1.3m interest-only mortgages set to mature by 2020, almost one million have no repayment plan. This equates to £116bn of mortgages, or almost 10% of the market.
“Compensation claims are being aimed at the brokers who sold the deals, rather than the lenders themselves,” said a Claims Management Regulation spokesperson.
According to the Financial Ombudsman Service (FOS), there were 9,537 complaints in relation to mortgages for the year ending March 2012, up from 7,067 complaints in the previous 12 months.
-ENDS-
ABOUT HARDWICK FINANCIAL
Hardwick Financial Solutions Ltd cater for clients with complex, historical cases and also help in claiming back money that is owed to them – which in many cases is news to the client themselves.
They act for clients who have been hampered by mortgage mis-selling and fight their corner so they receive what they are rightfully entitled to.
They have long been recognised as one of the leading Claims Management/Financial Solutions practices in the UK and are highly regarded for their depth of knowledge and breadth of experience.
Their dedicated mis-sold mortgages website can be seen at http://www.hardwickmissoldmortgages.co.uk
Rate this! 1-5 starsThousands of borrowers on interest-only mortgage deals in the UK could pave the way for the next big compensation saga following on from PPI claims, according to finance industry experts.
There has already been confirmed redress payments made for mis-sold interest-only mortgages but it is believed compensation paid so far is merely the tip of the iceberg with the number of claims expected to soar in the coming months.
Interest-only loans – where the borrower repays none of the capital and just the interest – have come under scrutiny recently after Martin Wheatley, the former director of the Financial Services Authority (FSA), described them as a “ticking time bomb”.
Scott Sheedy, managing director of Hardwick Financial, believes awareness is increasing and people are increasingly exploring their eligibility to claim.
“Mis-sold mortgage claims are still in their infancy but already we’re seeing a constant rise in enquiries,” said Mr Sheedy.
“Interest-only mortgages are the core of the mortgage mis-selling market; many borrowers were not subject to checks that would have clarified whether they would have the means to repay the debt at the end of the mortgage term.
“Furthermore, it’s apparent that many mortgage borrowers who would have qualified for lower interest rates were never offered them,” Mr Sheedy added.
Research by xit2, the asset management data firm, has shown that of 1.3m interest-only mortgages set to mature by 2020, almost one million have no repayment plan. This equates to £116bn of mortgages, or almost 10% of the market.
“Compensation claims are being aimed at the brokers who sold the deals, rather than the lenders themselves,” said a Claims Management Regulation spokesperson.
According to the Financial Ombudsman Service (FOS), there were 9,537 complaints in relation to mortgages for the year ending March 2012, up from 7,067 complaints in the previous 12 months.
-ENDS-
ABOUT HARDWICK FINANCIAL
Hardwick Financial Solutions Ltd cater for clients with complex, historical cases and also help in claiming back money that is owed to them – which in many cases is news to the client themselves.
They act for clients who have been hampered by mortgage mis-selling and fight their corner so they receive what they are rightfully entitled to.
They have long been recognised as one of the leading Claims Management/Financial Solutions practices in the UK and are highly regarded for their depth of knowledge and breadth of experience.
Their dedicated mis-sold mortgages website can be seen at http://www.hardwickmissoldmortgages.co.uk
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