When offering a mortgage, the advisor has an obligation to ensure that the product recommended to a customer is one that is suitable and affordable – not simply the one which generates the most commission.
At FDM we specialise in financial mis-selling claims, in particular in claims which involve recklessness or negligence on behalf of the advisor.
As with most elements of this area of law, the reasons for mis-sale are numerous and ultimately rely on the specifics, however, the main points of mis-sale we see are:
- Interest only recommendation with no mechanism in place to repay the capital;
- Easily foreseeable changes in circumstances not being taken into account (e.g. retirement);
- Debt consolidation where other options would have worked out better (e.g. IVA);
- Self-certification with exaggerated earnings;
- Mortgages being recommended which were clearly unaffordable;
- High broker fees;
- Recommending a sub-prime product when a prime product would likely have been available;
If you have taken out a mortgage which you believe may not have been the best product for you, our team of experts can help.
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