If you’re a homeowner, you know the value of having a mortgage. But what happens when circumstances change, and you can no longer keep up with your payments? That’s where mortgage claims come into play. In this guide, we’ll cover the latest figures from the Council of Mortgage Lenders and provide a comprehensive overview of everything you need to know about mortgage claims.
What is a Mortgage Claim?
A mortgage claim is a legal process in which a homeowner seeks compensation for losses incurred due to the actions of their mortgage lender. This can include anything from unfair fees and charges to mismanagement of your mortgage account.
Mortgage claims can be made against any lender, including banks, building societies, and specialist mortgage providers. They are typically made by homeowners who feel that they have been treated unfairly by their lender and have suffered financial losses as a result.
The Latest Figures
According to the Council of Mortgage Lenders, there were 8,200 mortgage possession actions taken in the first quarter of 2021. This represents a 86% decrease from the same period in 2020, largely due to the government’s mortgage payment holiday scheme.
However, the number of borrowers in arrears has increased slightly, with 82,800 homeowners more than 2.5% behind on their mortgage payments. This represents a 3% increase from the previous year.
Reasons to Make a Mortgage Claim
There are many reasons why you might choose to make a mortgage claim. Some of the most common include:
- Unfair fees and charges
- Mismanagement of your mortgage account
- Inadequate communication from your lender
- Unfair terms and conditions
How to Make a Mortgage Claim
If you believe that you have a valid claim, the first step is to contact your lender and complain. You should provide as much information as possible about the issue and explain how it has affected you.
If your lender does not offer a satisfactory response, you can escalate your complaint to the Financial Ombudsman Service (FOS). The FOS is an independent body that can investigate and resolve disputes between lenders and borrowers.
The Benefits of Making a Mortgage Claim
There are several benefits to making a mortgage claim. Firstly, you may be entitled to compensation for any financial losses that you have suffered as a result of your lender’s actions. This can include interest, fees, and charges that you have paid.
Secondly, making a mortgage claim can help to hold your lender accountable for their actions. This can help to ensure that they treat their customers fairly in the future.
The Risks of Making a Mortgage Claim
It’s worth noting that there are some risks associated with making a mortgage claim. Firstly, there is no guarantee that your claim will be successful. This can be a frustrating and time-consuming process.
Secondly, there is a risk that your lender may take legal action against you if they feel that your claim is unfounded. This can be a stressful and expensive process, and it’s important to seek legal advice before making a claim.
Conclusion
Mortgage claims can be a complex and challenging process, but they can also be an effective way to seek compensation for unfair treatment by your lender. By understanding the latest figures from the Council of Mortgage Lenders and following the steps outlined in this guide, you can take the first steps towards making a successful mortgage claim.