According to one of the English national newspapers, the ruling set a precedent that might prevent repossession where it may be proven that a mortgage have been mis-sold. The case hinged on rules covering suitable advice. Nevertheless, some legal professionals who've considered the case are hopeful that later on the proper advice clause may be used to in fact stop repossessions happening over these mis-sold mortgages difficulties. The newspaper has reported on a case in which the Financial Ombudsman Service has ruled that a former homeowner, whose property has been repossessed by their lender, was a mis-sold mortgages case from the start.
An outstanding Ombudsman victory for a home owner that had her home reclaimed right after being mis-sold a mortgage could set as an example to prevent others from losing their properties as the recession bites, lawyers say.
Many borrowers who face handing back the keys to their homes may be helped by rules covering proper advice.A homeowner who struggled to repay her mortgage yet subsequently took his mis-sold mortgages case to the FOS and has now won.Despite turning to the FOS late on and being repossessed, he will receive compensation, while other debtors that begin cases at an earlier stage than he did might well manage to save their homes as well.
The scandal of mis-sold mortgages in the United Kingdom has been addressed in a Citizen's Advice Bureau report released in 2007, entitled Set up to Fail.The report was primarily based on 1,200 case studies from 360 Citizens Advice Bureau across the British Isles.
It found out that many lenders and brokers are not ensuring that borrowers understood the risks of entering into a mortgage or were aware and agreed with what the policy entailed. The analysis also revealed that in certain mis-sold mortgages cases, it appeared that the lender didn't check whether the borrower might even afford the mortgage repayments from the outset.As many as 371,000 homeowners declare that they were given poor advice mis-sold mortgages victim and several may have a claim against their lender or broker.
Under the Financial Services Authority (FSA) guidelines if the advice given breached the rulebook for mortgage advisers, Mortgage and Home Finance: Conduct of Business, then debtors struggling to pay their own mortgage may take their case to the right authority who handles mis-sold mortgages situations.According to mortgage claims referral service, 161,500 home owners do not believe they'd the right advice from their lender or broker when taking out their mortgage and 209,500 property owners think that they may have been mis-sold mortgages victims.
Author Resource:
Nancy Williamsblogs about Mis-sold-mortgages and other financial products for British based company www.bankcharges.com . She also tweets about unfair mortgage charges and the financial claims niche generally, in addition to writing posts on personal finance, house sales, repossession and business finance.
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