Problems may arise when one is committing on buying a home. This is because of the wrong advice they may receive and hence the buyers end up buying the wrong mortgage. This situation makes any buyer wonder what to claim, in such a situation the questions are still if they are eligible to make such claims or not. With these concerns mounting up, there are areas in the mortgage sector where claims are made. The two most important categories on where one can have a mortgage claim is the mortgage protection insurance and the mis sold mortgage.
Mis sold of a mortgage occur when the buyer accepts to pay for the mortgage fees, but in turn the problems arise when the mortgage is sold incorrectly. Mis sold mortgage result due to incorrect or rather wrong advice. The process of how a mortgage can be mis sold has been a mysterious and uncovered story. A mortgage can be mis sold when the interest rates of a fixed rate mortgage increases substantially and the adviser does not take in account on whether the customer can afford the payments or not. Such a situation leads results to mis sold mortgage. A mis sold mortgage also occurs when the circumstances of the customer on a certain mortgage are not taken in to deliberation. This is best explained by the fact that the adviser still does not consider the customers potential to meet the payments after a certain period elapses. The truth is that a mortgage can be mis sold if the customer sold a sub-prime mortgage, and yet does not fit the bracket of people with poor credit. With such, a mortgage is mis sold. If any individual buyer thinks that the mortgage he or she has bought is mis sold, then the opted way is to seek advice.
The financial service authority is an organization that tends to offer legal advice and also regulates the mortgages. This FSA organization ensures that the mortgage advisers deliver and provide the most accurate and reliable advice to the buyers. This is to prevent the buyer being mis sold a mortgage. In addition to this, there are mortgage rules and regulation that govern the mortgage sector. These rules are made for both the mortgage lenders and buyers, for the lenders they have to have a reasonable and accurate plan of payment, which tends to suit the customer. Lender must also be specific, as well as be able to know the best product for the customer. The intended rules for the customers, and then they should also know the interest rates, have a reservation fee, and also ought to have an early redemption penalty, as well as life insurance.
An insurance claim is made by the customer to the insurance company, so as to claim compensation for any accident involved. The mortgage protection insurance is on the mis sold mortgages; this insurance claim has been increasing as many buyers opt for it. The mortgage protection insurance is not compulsory, though its advantages to have the good mortgage protection insurance policies. This is because they cover all bills related to the mortgage such as interest rates and repayments among others. The mortgage protection insurance has pit falls such as not paying out when customer is off work due to medical conditions, not covering for the pregnancy, and also if customers reigns. Customers reclaim their mortgage payments in cases that the mortgage lenders are being dishonest regarding to customer service.
Monday, 10 October 2011
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