Was Your Mortgage Mis-sold?
Prior to the financial crash in 2007/8, lenders and developers gave out mortgages with little to no due diligence and high loan-to-value ratios. This has resulted in a variety of issues for borrowers.
Many of these mortgages would now be classed as mis-sold. However, despite this, borrowers will not recive any compenstation and are still pursued for outstanding debts.
Read on to find out more.
The phrase ‘mis-sold’ is frequently used when discussing property purchases in Spain, especially those made before 2008. This period of rapid economic growth also saw a ‘wild west’ approach from financial institutions. A result of this is wildly overpriced and overinflated mortgages given to unsuspecting borrowers.
In reality, a large proportion of mortgages given out during this time were likely mis-sold. This is even more common for interest-only mortgages. However, the news is not good if you believe you have been mis-sold a property or mortgage. The chance of ever being able to prove this is next to nothing. The Spanish legal system is difficult at the best of times, but when it comes to compensation or write-offs for mis-sold mortgages, success is out of the question.
How to know if your mortgage was mis-sold
Mis-selling can come in many forms, and the phrase is quite ambiguous as a result. This is partly why it can be so difficult to prove. Generally, if you overpay on your mortgage due to false or missing information, this would be considered mis-selling.
Lenders commonly did not carry out full financial checks before offering mortgages, resulting in borrowers taking out loans that they could never afford. Many buyers were also offered mortgages with very high loan-to-value ratios. This meant that when property prices decreased, most property owners ended up in negative equity due to their large mortgages. Read here about negative equity.
Are there any options?
Mis-selling practices are common knowledge across Spain. However, this does not make it any easier to get compensation. Borrowers have spent small fortunes on legal fees in their attempts to get ‘justice’ but to no avail. Several Spanish court rulings have been seen as breakthrough moments for mis-sold borrowers, but the promised compensation has never materialised.
EU Property Solutions provide realistic solutions to Spanish property owners and have been for over a decade. Our experienced UK-based team work with Spanish legal representatives to achieve the most favourable outcome for you.
It’s free to talk to us so if you would like a full case review, call us today on 0330 124 1230 or email [email protected]
Is There A Formal Compensation Process?
No, there have been many attempts over the years, but the Spanish Government have never established any kind of scheme to compensate victims of mis-selling. You need to go through the courts, which can be a lengthy, expensive, and most likely unsuccessful process.
Does Mis-selling Mean I Don’t Have To Pay?
Another common misunderstanding is that if you were mis-sold, you do not have to pay off the remainder of your mortgage. As there is no legal basis for this, it is untrue. You need to pay your mortgage, and you will face the same consequences if you fail to do so.
Why Should I Trust EU Property Solutions?
For over a decade, we have been helping people in exactly the same situation you find yourself in. We understand that you have probably been lied to by the bank, developers, and estate agents. If our amazing results don’t say enough for themselves, check out some of our testimonials or call our office and speak to a team member. You can even chat with previous clients of ours over the phone!
Why not get in contact?
We are always happy to offer a free, confidential review of your situation.
This helps us understand exactly what you need and helps you understand the best options to solve your property debt issues.