Lloyds Bank To Repay £300million To 600,000 Customers
The financial imprudence of mortgage lenders and brokers in recent years is coming back to haunt them. Today’s revelations casting light on the extent of Lloyds Bank’s £300 million overcharges to borrowers in mortgage arrears is merely the canary in the coal mine.
With a spate of recent judgements emerging from the Financial Ombudsman and from the Courts in favour of borrowers who have been negligently sold wholly unsuitable mortgages, the banks are responding by setting aside billions in anticipation of large volumes of future mis-selling claims. This new tranche of compensation is likely to dwarf the scale of the ongoing PPI scandal as many borrowers have been disadvantaged to the tune of tens of thousands of pounds because of their broker’s and / or lender’s negligence.
Such mis-selling claims are likely to arise if you have been sold a mortgage with one or more of the following characteristics:
- A mortgage which was unaffordable and unsuitable to your financial circumstances
- A mortgage on an Interest only basis with no appropriate repayment strategy in place
- A mortgage with significant unsecured debts consolidated into the mortgage
- A mortgage where the term extends into your retirement
- A self-certified or “fast track” mortgage where you did not need to prove your income
- A mortgage where the broker’s commission was not disclosed to you
In addition, as today’s revelations highlight, the mortgage industry’s problem with mis-selling has been further compounded by systemic malpractice in the miscalculation of interest rates and the adding of extortionate fees, charges and penalties to borrower’s mortgage accounts. Many of these charges and miscalculations are unlawful and may give rise to substantial claims for breach of contract against your lender, particularly in circumstances where a borrower is in mortgage arrears.
Here at Oakwood Solicitors we have an experienced team of lawyers with expertise in both mortgage mis-selling and breach of mortgage claims who are able to assist you.