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By: Thomas Dixon

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Monday, 11-Mar-2013 08:02 Email | Share | | Bookmark
Mis Sold Mortgages- The Effects On Home Owners

Mis-sold mortgages have been a widespread concern across the UK since the mid 90's as lenders and mortgage providers mis-sold incorrect, unreliable and misleading mortgages by means of an 'endowment' mortgage, that has affected thousands of homeowners and their financial situation. With the aim of boosting their financial situation, investment firms and brokers overestimated the value of properties during the late 80's and 90's and were constantly pushy, mis-selling thousands of mortgages with the sole aim of making profit from the interest and sale of every individual endowment. It has been discovered that home owners all around the UK have been fighting to repay their mortgages due to these poorly estimated and highly inflated payments which were originally suggested based on little investigation of the wages per household and has thus left home owners in a horrible state with thousands of pounds worth of debt.

The issue of mis-sold mortgages first been revealed in the mid-90's when home owners were seeing themselves in monetary difficulty as their mortgage payments were forcing them to lend more money as they battled to deal with the repayments as inflation caused them to rocket. The problem and pressures placed on home owners is the direct outcome of ill-advised mortgage products offered and mis-selling people something that would turn out to be a major hassle. Homeowner’s income and affordability weren't considered when first being sold the endowment mortgages, over-inflated repayments and small research into their monthly finances were the strategy applied by brokers and mortgage sellers, making this terrible judgement and financial difficulty. Since the mid-90's the recession has pushed numerous UK homeowners into job-loss, redundancy, part-time employment, retirement and other financially difficult situations, through no fault of the homeowner and this has only added to the problems of repaying the ever-climbing mortgage repayments.

Early retirement and retirement has proven to be a rather difficult situation for many homeowners who have been obligated from their long-serving work to retire to save the business money and thus did not think about their mortgage repayments would be affected. Many lenders and brokers that were mortgage mis selling which didn't discuss repayments once the property owner had attained retirement as many attempted to convince them it might be paid off before they reached retirement age. Greedy for commission, these lenders sold mortgages to anybody and everyone without explaining would be take place if early retirement was to occur, as repayments still needed to be made at the price of the current interest levels. Some people have sadly found their houses being reclaimed as they simply could not maintain the high payments required of them, and retirement has not been the enjoyable, silent time the expected.

Separation and divorce have also become a major headache for home owners with endowment mortgages as it meant their house was instantly regarded negative equity and when instructed to sell they would lose out. Thus having to sell their house at a lower price than originally valued, losing money and making a major loss instead of the promised profit. Some couples who may have separated since getting one of these mortgages have been forced to stay together as an outcome of simply losing too much cash, making their home lives unpleasant and desperate as they attempt to continue paying off the house without missing out economically. To have more idea about mis sold mortgages you can visit


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