Mortgages are a significant financial commitment, and given the state of the economy, things can go wrong. In such cases, it’s essential for borrowers to know that they have the right to compensation if they have been poorly advised or sold something unsuitable. This is where the Mortgage Express compensation scheme comes in.
The Mortgage Express compensation scheme was set up in 2012 by UK Asset Resolution (UKAR), which is a holding company for two of the UK government’s failed mortgage banks, Bradford & Bingley and Northern Rock. The purpose of this scheme was to provide redress for customers who were mis-sold mortgages by Mortgage Express.
Mortgage Express was a subsidiary of the Bradford & Bingley bank, which collapsed in 2008 due to the financial crisis. The business was then sold to UKAR, which then became responsible for the customers of Mortgage Express. The Financial Conduct Authority (FCA) stipulated that compensation for mis-selling should be paid out to affected customers, and the Mortgage Express compensation scheme was set up to ensure that this happened.
The scheme targeted customers who had become trapped in so-called “sub-prime” mortgages that had interest rates higher than the market rate and came with fees and penalties that were harsher than typical mortgages. Customers were also offered these mortgages without adequate checks about affordability, income, or creditworthiness.
The compensation scheme was set up specifically to compensate customers who were mis-sold between 2004 and 2010. Mortgage Express identified customers who may be eligible for compensation and then began the process of investigating any issues around mis-selling.
If a customer had a mortgage with Mortgage Express during the relevant time period, they were eligible for compensation. Compensation amounts were based on the level of loss suffered by the customer as a result of mis-selling and any financial penalties that may have been incurred.
Customers who were found to have been mis-sold mortgages were offered a refund of the additional interest they had paid on their mortgage as well as compensation for any additional expenses that they had incurred.
It is estimated that more than 30,000 Mortgage Express customers were eligible for compensation under the scheme, and more than £450 million has been paid out to affected customers as of 2021.
If you think you may have been affected by the mis-selling of a Mortgage Express mortgage, it’s vital to seek advice from a professional compensation claims company who can help you determine if you are eligible for compensation.
Even if you have already received a refund from Mortgage Express as part of their compensation scheme, you may still be able to claim further compensation if you believe your refund was not adequate.
It’s important to note that compensation claims for Mortgage Express mortgages are subject to certain time limits. If you think you may have been affected by mis-selling, you should seek advice as soon as possible to ensure that you don’t miss out on any potential compensation.
Compensation claims for Mortgage Express mortgages can be complex, and it’s recommended to use a professional claims management company who specialize in dealing with such claims. This will ensure that you receive the maximum amount of compensation that you are entitled to.
In conclusion, the Mortgage Express compensation scheme has provided much-needed redress to customers who were mis-sold mortgages during a difficult period in the economy. The scheme has enabled affected customers to receive compensation for the additional fees and penalties that they incurred as a result of being wrongly sold an unaffordable mortgage product.
If you think you may have been affected by the mis-selling of a Mortgage Express mortgage, it’s crucial to seek professional advice as soon as possible. By doing so, you can ensure that you don’t miss out on any potential compensation that you may be entitled to.
Don’t suffer in silence. Contact a reputable compensation claims company today and find out if you are eligible for compensation under the Mortgage Express compensation scheme.