6 Reasons Why You May Have Been Mis-Sold a Right to Buy Mortgage

6 Reasons Why You May Have Been Mis-Sold a Right to Buy Mortgage

Did you buy your council house through the Right to Buy scheme after 2004?
Did you arrange it through a Mortgage Broker or ‘Door Knocker’?
Do you have Payment Protection Insurance on your mortgage which was not properly explained to you at point of sale?
Are/were your mortgage payments much greater than your previous rental payments?
Was your income falsified by the mortgage broker?
Did you find that the mortgage rates increased significantly after 3 years?If you can answer YES to any of the above there is a chance you were mis-sold your Right to Buy mortgage and we would strongly advise you to speak with a reputable Right to Buy claims company to discuss ways in which they can claim compensation for your mortgage and reclaim any Payment Protection Insurance that has been wrongly added to your mortgage. At the beginning of 2007, city councils across the UK were alerted to ‘door knockers’ / mortgage brokers who claimed to be able to negotiate better discounts on behalf of council tenants. Much of what these ‘door knockers’ were telling their council tenant clients was false and was done with the sole aim of putting themselves in a position whereby they could take a large percentage of the discount originally intended for the council tenant.These actions led to city councils making statements similar to Stoke-on-Trent Councillor Adrian Knapper. Councillor Knapper, in March 2007, went on to say “Consumer Protection officers from Stoke-on-Trent City Council are alerting council tenants about several companies who are offering to help them buy their home. “They promote themselves by offering ‘professional expertise’, and promise to help tenants by completing the Right to Buy forms, negotiating with the city council and arranging a mortgage. “These companies sometimes make the tenant sign an agreement giving them the right to ‘represent’ them when dealing with the City Council. “What isn’t made clear at the time, is that their services are not free. They charge for their assistance along with solicitor’s costs, valuation costs and mortgage arrangement fees.”He went on to explain that “these costs are either added to the total amount of the mortgage or the tenant is required to agree to pay an initial deposit followed by installments.” At best, this was a widespread case of opportunism by mortgage brokers who saw an opportunity to make plenty of extra income in a short space of time. At worst, this was blatant fraud. In the same month as Councillor Knapper made the above comments, the Guardian published an article which brought this fraud to the nation’s attention but still the problem worsened as more and more people became attracted to the idea of owning their own home. One victim of Right to Buy mis-selling said “if you can’t trust a mortgage broker who you have known for a while, who can you trust!” The article threw up a tragic example of how Right to Buy mis-selling was ruining peoples lives.According to the Guardian, “Ismail Ali, 71, was persuaded to take out a mortgage costing £430 a month, despite his monthly income being just £517. He has now lost his council home of 15 years and is living in a seamen’s hostel in east London. “He was approached by a mortgage broker who slipped a leaflet promoting the idea of ‘right to buy’ through his door. ‘I’d never thought of it till then. I phoned up and they sent somebody to see me who suggested I buy my home. He told me about the discount the council would give me on the price which made me interested.'” When the credit crunch hit at the tail end of 2008 people found that they were stuck in the mortgage that the broker had arranged for them – a mortgage they can’t now afford.Cloud 9 Claims, a reputable claims company who specialise in fighting for compensation for victims of Right to Buy mis-selling and Right to Buy Claims in general, have found that there has been a spike in Right to Buy claims in the last 2 months and most of the victims have not only had a large percentage of their discount taken by the broker and/or solicitor but they have also wrongly been mis-sold payment protection insurance on their mortgage (PPI can be claimed back within weeks).