About Us

The managing director Eddie Marshall has over 30 years’ experience in compliance and the whole-of-market prime and sub-prime mortgage marketplace, with the ability to read files to assess whether there could be any potential negligence or material regulatory breaches.

We will always require information from the lender/broker/mortgage club and/or service product supplier under GDPR May 2018 full file disclosure.

Our opinion and methods for professional negligence are followed in accordance with MCOB rules and principles.

The Regulations

Under Section 4.7 of the FCA’s rulebook for mortgage advisers, “Mortgage and Home Finance: Conduct of Business” (MCOB) it states that mortgage advice must be “suitable for that customer” and that advisers “must make and retain a record” of it being suitable. Breaches of the MCOB rules are “actionable at the suit of a private person who suffers loss as a result”.

Under Section 138 para D FSMA 2000 by reason of the Financial Services Act 2012. Contravention of the rule by an authorised person is actionable at the suit of a private person who suffers loss as a result of the contravention, subject to defenses and other incidents applying to actions for breach of statutory duty.

Listed below are some of the most common instances we investigate when appraising a mortgage contract.

  • The mortgage is on interest only with no capital to repay the mortgage at the end of term.
  • Debt consolidation. Were the true costs involved in consolidating short term loans over a long-term mortgage was not detailed and explained to the client?
  • Self-certification. The client was not asked to provide confirmation of income, was employed, a student or a casual worker when they applied for this mortgage or were advised to take out a self-certification mortgage, even though the client was not self-employed, in order to borrow more.
  • The mortgage runs past the client’s retirement age.
  • High penalty charges were imposed without the client understanding why these were added.
  • Council house tenants who were advised to buy their council house without the lender undertaking an adequate assessment of their financial situation.
  • High Street lender but later switched to a subprime lender.

The process.

The FCA rules state that the advisor or mortgage broker “must make and retain a record” of the mortgage being suitable for you. In other words, the advisor or mortgage broker must provide information proving and substantiating that they advised the client correctly and followed all the regulatory procedures in determining whether the mortgage was suitable.

Supply and produce copies of all the advice given and supply evidence that the broker/lender carried out a full fact find/client review of needs and requirements which will include income/expenditure assessment. It was the lender or mortgage advisor’s job to make the client aware of exactly what would be the true costs and act responsibly when ascertaining if the mortgage was affordable and suitable.

You may litigate or forward a complaint to the Financial Ombudsman Service

If no reasonable solution has been reached after following the mortgage advisor or broker’s complaint process, they must issue a final response letter within the regulated and prescribed time period.

The FOS make no charge and their service is free.

They will then decide what action must be taken by the broker and make any recommendations for redress. If the mortgage advisor, building society/bank or broker has ceased trading, the (FSCS) Financial Services Compensation Scheme can be approached.

The FOS is an independent body set up by the government to resolve disputes between trading financial companies and their customers and is free to use.

The FOS will review the case independently and if they rule in favour, the mortgage broker or building society/bank will be obliged to co-operate with their rulings.

Information Commissioner

Information Commissioner's Office DATA registration Z2479595. Website: http://www.ico.gov.uk/.

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