Description

On 1st November 2004 the FSA took over responsibility for the regulation of mortgage lending and advice in England & Wales, introducing a new set of rules for lenders and brokers, the rules governing the sale of mortgages state that lenders and brokers must ensure that the mortgage is affordable, not only at the time of sale, but throughout the whole term of the mortgage, even if that means into retirement.

It is estimated that 1.9 million people have been mis-sold an Interest Only Mortgage and were given bad advice from a Broker. A Broker’s failure to comply with high level principles and MCOB rules means regulatory action could potentially be taken against them under the FSA Services and Markets Act.

It has been found that many advisers and lenders are not following the rules and mis-selling Interest Only Mortgages. If you were sold an Interest Only Mortgage after October 2004, there is a strong possibility you could have suffered from your mortgage being mis-sold to you.