Long mortgages with sting in the tail

They are billed as a painless new way to spread the cost of buying a home. But experts warn the introduction of 40-year mortgage terms may end up almost doubling your debts  -  and leave you struggling to pay the bills well into your 70s. 

Advice: For help with a Mis Sold Mortgage and Sub Prime Mortgage Compensation please call 0800 043 1683. 

A host of lenders have ditched the old rule that mortgage terms are set for a standard 25 years and must be cleared by the normal retirement age. 

Now, Halifax, HSBC, First Direct and ING Direct all let borrowers keep their mortgages running for another decade and a half. 

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11,000 complaints A DAY

Britain's biggest High Street banks have been swamped by a staggering 11,000 complaints a day from angry customers.

Advice: For help with a Mis Sold Mortgage and Sub Prime Mortgage Compensation please call 0800 043 1683.  

The sheer scale of the shabby customer service doled out by the ‘big six’ banks was laid bare for the first time yesterday 

when they were forced to publish the number of disputes they had received in the first six months of the year.

Damning figures reveal as many as nine in every ten complaints about banking were rejected without so much as an apology.

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Mortgage bill complaints rising says ombudsman

Many homeowners are facing an unexpected outstanding mortgage balance owing to mistakes in monthly payments.

Advice: For help with Mis Sold Mortgages and Sub Prime Mortgage Compensation please call 0800 043 1683. 

Many homeowners are facing an unexpected outstanding mortgage balance owing to mistakes in monthly payments.

The Financial Ombudsman Service said it was receiving a rising number of complaints over how these disputes have been resolved.

The ombudsman deals with numerous disputes each year when homeowners are hit with a large balance after paying the amount quoted by their lender.

Complaints

The issue is known as mortgage underfunding, and the financial ombudsman said that its approach to compensation had been unchanged for 10 years.

The service said that mortgage lenders could tell homeowners to make monthly mortgage payments that were too low for a number of reasons.

These included quoting interest-only payments in error, calculating payments over a longer term than planned, lengthening a mortgage term incorrectly, or even just making a typing error.

 

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