Missold Mortgages Happened on Debt Consolidation Loans Too
If you have heard some of the recent controversy around missold mortgages you may think that it only really affects those people who bought a new home and were given a loan which was too big for them.
This isn’t the case at all, and in fact there are many other situations in which borrowers have found themselves saddled with missold mortgages. One example of this is with debt consolidation loans.
These are mortgages in which an additional debt such as a personal loan or credit card has been added on to the amount of the home loan borrowing. This type of loan is rather more complex than a straight house purchase, so the mortgage adviser has more responsibility to make sure that the right advice is given.
A Higher Interest Rate
For instance, adding an unsecured onto a mortgage isn’t always the best solution. The fact that the home loan would tend to run for a much longer term than a personal loan means that the overall amount of interest which needs to be paid back is usually a good deal higher.
High Fees Too
We can also add in the fact that you are putting your home at risk by adding more secured borrowing onto it and the issue of the high fees which this kind of transaction generally attracts. So we can see that there are some very good reasons why a borrower looking for a debt consolidation deal would need to rely heavily on the advice and experience of a good mortgage adviser.
The problem is that the advice wasn’t always up to scratch and this is what led to so many missold mortgages being given out. The debt consolidation type of loan in itself is not the problem; it is the lack of proper consultation with the customer before the deal was signed which has caused these problems.
Fortunately it isn’t too late to sort things out. If you are one of the many victims of any of the different types of missold mortgages you can now make a claim. This could improve your financial situation drastically and ensure that you can recover the money you have lost due to being given poor advice.
Author Bio:-
Any homeowner who has lost out due to missold mortgages should now consider taking action and getting the compensation money they are due.
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