Remortgage Protection is Essential, Make Sure You're Not Missold a Mortgage
Remortgage Protection is Essential, Make Sure You're Not Missold a Mortgage
A large mortgage lender, DB mortgages, has recently received a fine from the regulatory body - the Financial Services Authority after investigation into their business practices.The lender, who are part of Deutsche Bank were fined just under a million pounds by the FSA. The reason? That old story of mis-selling. The FSA ruled that the mortgage lender had been irresponsible in their lending practices and had also been unfair with charges that they had made to customers who had fallen behind on payments.The FSA forced DB Mortgages to repay charges to the customers, who they said have been treated unfairly and had been charged costs that were far higher than those incurred by the lender in administering accounts that were behind on payments. To avoid court action and the potential of significant financial penalties, lenders will now have to ensure that they lend responsibly. For example, they will have to ensure that borrowers are not being encouraged to borrow higher loans than they can afford. In addition, they will have to take great care over home loans that continue into a borrower's retirement.In another ruling that is likely to benefit borrowers, DB Mortgages were forced to repay fees and charges where the amount charged did not accurately reflect the administration work involved. This successful challenge mirrors the claims against High Street banks for the level of charges being applied to current accounts.The news of mortgage lenders being fined for such business being undertaken gives new faith to borrowers, and it is thought that we may see a further decrease in mortgage lending as banks are becoming more and more nervous about lending to customers since the recent market crises and the new regulation that is being implemented by the regulators. It is clear that they mean business and that they will no longer allow consumers to be exploited and left in poor financial circumstances when they are already struggling.Borrowers can now sit safe in the knowledge that they are protected against such practises, however the advice is still to make sure that you know exactly what you are getting into before you take on a mortgage. The best bet is to seek financial advice from a good mortgage broker or financial adviser who can talk you through the details. If you decide to remortgage, ensure that you know all fees and costs involved before signing on the dotted line. This is important as you could end up paying more and subsequently fall into arrears if you've not explored all costs. Do your research on lenders too before taking out a mortgage, and take out payment protection insurance so that if you end up in a sticky situation such as losing your job or unexpected bills that need addressing meaning that your mortgage payments suffer, you have a policy in place to pay the mortgage repayments for you. Again, take advice on the best policies and read through the terms to ensure you're covered in all circumstances.As this new regulation is at the top of the news at the moment, now is the time to reclaim charges if you think that your lender has overcharged you when you've fallen behind on mortgage payments.