Many homeowners across the country are reviewing their mortgages to determine whether they were mis-sold by a broker, lender, or financial advisor.

If you have taken out a new mortgage or additional borrowing, the broker, lender, or advisor had a duty to ensure the advice provided was based on your individual circumstances. They were also required to make sure the mortgage was affordable and in your best interests. A failure to do so may mean you have a valid mis-selling claim.

For a claim to be possible, the mortgage must be ‘regulated’. Generally, this means:

• The borrower must be an individual or trustee.
• The lender must take a first legal charge over property in the UK.
• At least 40% of the property must be occupied by the borrower or a member of their immediate family, or intended for their occupation.

Mortgages that are not regulated, and therefore cannot be claimed against, include:

• Buy-to-let mortgages (unless the tenant is an immediate family member, or the borrower intends to occupy the property).
• Second charge loans.
• Loans to companies (other than in the case of trustees).

A mortgage may have been mis-sold if, at the time of taking it out, the lender, advisor, or broker:

• Did not properly assess your personal circumstances.
• Failed to explain the available options.
• Gave a recommendation that did not reflect your needs.

Common signs of mortgage mis-selling include:

• High interest rates.
• Negative equity.
• Excessive fees.
• Difficulty making payments or falling into arrears.
• Risk of repossession.
• No repayment plan in place.

Even if the broker or lender is no longer trading, complaints can still be pursued through the Financial Services Compensation Scheme (FSCS). If a company is still operating, complaints may be taken to the Financial Ombudsman Service (FOS) for mediation.

If you believe you were mis-sold a mortgage, professional support can help you recover the compensation you may be entitled to.