Mis-sold mortgages in the UK have been happening for a number of reasons.  At long last, the Financial Services Authority have shown their concern about the increasing number of mis-sold mortgage complaints and launched an investigation regarding this matter.  One of these reasons they found out was mortgage brokers or advisers gave bad credit advice to their clients.  Most of the clients were not informed or aware of the other charges in their mortgage loan which we know as hidden charges.

Most of the documents were forged by the brokers and were presented to the lenders to be able to obtain a higher amount of mortgage loan for their clients.  The brokers also did not assess the client’s current situation before applying for the mortgage loan.  Obviously, the higher the loan they arranged for their clients, the higher the commission they get; and the more loans they sold, the more commission they get as well.

These brokers who were selling these mortgages were not concern about the future of their clients.  They were more concern on how much money they could get at the end of the day.  Most these brokers were already fined by the Financial Services Authority but a lot of them still continue to mis-sell a mortgage thinking that they will only be fined with a small amount.  The risk was worth it because the fines were only at a minimum amount and the rewards for mis-selling a mortgage is far greater.  There is no wonder why there are still a lot of financial institutions carrying out this practice today.

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