Mis Sold Mortgage Did Not Check Affordability

Despite low interest rates looking like they will remain in place for the coming months and a new Government in place, many families are in desperate financial situations.

In a recent survey carried out by the charity “Shelter”, it showed many families are resorting to other sources of credit such as credit cards to fund mortgage payments.

Part of the Financial Services Authorities rules governing mortgage advice state that mortgage advisers must check the affordability of any proposed mortgage and keep evidence of how this was checked.

Many mortgage advisers gave total disregard for affordability and used self certification mortgages to get borrowers higher mortgage loans than should have been granted.

The survey carried out by Shelter showed six per cent of participants liable for rent or a mortgage admitting they had used a credit card to fund payments over the past year.

Kay Boycott, director of policy and campaigns at Shelter, described the findings as a “shocking discovery”…

Ms Boycott added: “It is absolutely vital that every single person using credit cards in this way seeks advice urgently to get the help they need to ensure they don’t lose their home.”In some circumstance mortgages were granted without affordability being properly assessed.

The Bank of England has confirmed that mortgage approvals in the UK has increased to their highest level for over a year.

During a visit by the FSA to his firm in March 2009, they discovered he had only obtained the sign off on one mortgage contract, despite lots more being processed.

There is no evidence any of these applications were approved by an external compliance consultant.

The FSA concluded that Masi acted without honesty and integrity, demonstrating he is not a fit and proper person, and has therefore banned him from working in the financial services industry because he presents a risk to consumers.

Despite low interest rates looking like they will remain in place for the coming months and a new Government in place, many families are in desperate financial situations.

In a recent survey carried out by the charity “Shelter”, it showed many families are resorting to other sources of credit such as credit cards to fund mortgage payments.

Many mortgage advisers gave total disregard for affordability and used self certification mortgages to get borrowers higher mortgage loans than should have been granted.

The survey carried out by Shelter showed six per cent of participants liable for rent or a mortgage admitting they had used a credit card to fund payments over the past year.

Kay Boycott, director of policy and campaigns at Shelter, described the findings as a “shocking discovery”…

The Bank of England has confirmed that mortgage approvals in the UK has increased to their highest level for over a year.

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Tags: mis sold mortgage, mis-sold mortgages, mortgage affordability

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