A man who had his house repossessed has won a remarkable victory with the ombudsman when it was ruled that he was miss-sold on his mortgage. The victory could set a precedent for other people who are facing repossession after being unable to make their mortgage payments.
As the recession takes hold of the UK, it is estimated that as many as 75,000 families could be facing repossession, which is a 35,000 more than the figure last year. This estimated data comes from the Council of Mortgage Lenders (CML).
The man (whose real name has been withheld) found he couldn’t make his mortgage repayments and claimed he had been miss-sold his mortgage. He took his case to the Financial Ombudsman Service (FOS) claiming a miss-sold mortgage, and the ombudsman has found in his favour.
He will now receive compensation for his miss-sell, even though he was repossessed. Other families in the same situation could now take similar steps to avoid repossession.
A spokeswoman for the FOS said that even though the man had a fixed rate rental fee on his property, he was convinced by a mortgage adviser to take out a mortgage and buy his housing association property. She said the mortgage adviser failed to point out what would happen when the discounted mortgage rate ended.