Mis-sold Right to Buy Mortgage

The Council House Right to Buy scheme enables tenants having lived at the property for more than 2 years the option to buy their property at an appealing price. The level of discount depends on how long the tenant has lived at the property but generally the discount would be between 32% increasing 1% every year until the 60% maximum has been reached.

Call us on 0845 519 6823 or alternatively

Mis-sold Right to Buy Mortgages became more commonplace as the scheme expanded and became more and more popular. Mortgage brokers, seeing an opportunity to cash-in on the discounted price, would add on their own fees for arranging mortgages, which would usually be excessive. Solicitors were equally as guilty, some even falsifying quotes for home improvements in order to secure a larger mortgage which would cover their own excessive fees.

Mis-sold Right to Buy Mortgages are a relatively young concept but one which has proven results in gaining compensation for victims. Generally speaking, compensation amounts can potentially be up to £50,000 through the FSA Compensation Scheme but can be much higher if you have additional PPI policies that we can also claim for. The amount of compensation awarded is usually much less than in Buy to Let Mortgage Mis-selling cases but the advantage is that they are usually resolved much quicker because many of the solicitors who dealt with this type of mortgage are still trading, hence making it much easier to gather the necessary files – something that solicitors are legally obliged to provide upon request thanks to the Freedom of Information Act.

Mortgage Claims Direct are leading the way in fighting the battle against mis-sold mortgages and other financial products that brokers were quick to sell during the housing boom. Claims vary in size but recent changes by the government have allowed for an increase in mis-sold mortgage compensation of up to £50,000

Did you buy your council house under the Right to Buy scheme?

Did you use a broker? You could have been badly advised.

Did you use a solicitor previously not known to you, recommended by the broker?

Did you pay the broker a substantial fee, which was added to the mortgage?

Did you pay an insurance policy single premium added to the mortgage to cover accident, sickness or unemployment?

>Did you have any other products added to the mortgage, i.e. home improvements, other insurance, etc?

Did the same broker remortgage you up to two years later, and charge you a broker fee again?

Were you explained the terms and conditions of the mortgage, i.e. discount rates, redemption penalties, etc?

Did the solicitor acting for you give you any advice on the above?

If any of the above were not explained to you in full and were not the correct products for your given circumstances, you could be in line for a substantial amount of compensation.

You are eligible to apply for the right to buy scheme after having rented the property out for a certain amount of time - usually after one years' tenancy. Another option available to you is the right to make a joint application, and share the cost with a member of your family or another tenant - as long as you have lived together for more at least 12 months preceding the application.

There are certain conditions that may stop you from being able to buy your council home. If you are being declared bankrupt, owe money to any creditors or are disqualified from borrowing money, the Right to Buy scheme is closed to you. As for the property itself, it does not come under the Right to Buy scheme if it isn't self contained (if it has a shared bathroom or kitchen). If you own another property already and this one is not your main home, you may not buy the property through this scheme as it is intended for those entering the property market for the first time. Finally, properties may not be eligible for the Right to Buy if they are deemed as suitable housing for the elderly and infirm.

It is of course important to bear in mind that a secure financial position is necessary before considering buying your home. Any housing benefits previously allowed to help with the rent are no longer permitted to help with the mortgage, so be sure to work out costs and income beforehand.

Anyone considering buying their home must however be careful, as the Right to Buy Mortgage Mis-selling is becoming more and more of an issue. The scheme is originally meant to benefit council tenants, letting them buy their homes at a discount price. However, mortgage brokers, marketing companies and even solicitors are guilty of charging exorbitant sums of money as added fees for arranging these mortgages. The extra fees have even been passed off as false home improvement quotes, which enables those solicitors to charge even more money and covers their fees nicely. This threat is a real danger, and caution is necessary when buying your home. But don't let that dissuade you as the right to buy remains an excellent choice for first-time home-owners.

Also see: Mis-sold Mortgage Claim and Mortgage Compensation Claim

Can I make a mis-sold mortgage claim?

Yes! You can start your mis-sold mortgage claim by calling our mis-sold mortgage claim line on 0845 519 6823 or you can alternatively complete our online mortgage claim form and one of our advisors will call you back.

We will complete a quick 5 minute review to establish if you have a possible mis-sold mortgage claim, if you have then we will then move onto the next stage a send you a review pack to read and sign so we can start your mis-sold mortgage claim.

We charge a flat fee of £49.00 for you mortgage review this is none refundable and is used to cover our administration cost and we will also keep 10% of any refund that you may receive. Mis-sold mortgage compensation has been capped to £50.000

START YOU MIS-SOLD MORTGAGE CLAIM TODAY, DONT MISS OUT!