As we all know, buying a home is one of the most significant investments that anyone can make. However, sometimes things don’t go as planned, and homeowners may find themselves in a situation where they cannot keep up with their mortgage payments. In such cases, a mortgage claim may be made to help the homeowner avoid foreclosure.
The Council of Mortgage Lenders (CML) is an organization that represents the mortgage lending industry in the UK. They recently released some figures that shed light on the state of mortgage claims in the country. Let’s take a look at what the latest figures from the CML tell us about mortgage claims.
What is a Mortgage Claim?
A mortgage claim is a legal process that allows homeowners to reclaim money that they have paid on their mortgage. This process is typically used when a homeowner believes that they were sold an inappropriate or unsuitable mortgage product by their lender.
There are several reasons why a homeowner might make a mortgage claim. For example, they may have been sold an interest-only mortgage without being fully informed of the risks involved. Alternatively, they may have been sold a mortgage that they cannot afford, leading to financial difficulties.
The Latest Figures from the CML
The CML has reported that the number of mortgage claims being made has increased in recent years. In 2016, there were around 12,000 mortgage claims made in the UK. This was an increase of around 5% compared to the previous year.
Interestingly, the CML has also reported that the number of successful claims has been decreasing. This suggests that lenders are becoming more cautious about the mortgage products that they offer, and are taking steps to ensure that they are providing suitable products to their customers.
Why are Mortgage Claims Increasing?
There are several reasons why the number of mortgage claims being made is increasing. One reason is that more homeowners are becoming aware of their rights and are willing to take legal action if they feel that they have been treated unfairly.
Another reason is that the Financial Conduct Authority (FCA) has been cracking down on lenders that are not providing suitable mortgage products to their customers. This has led to an increase in the number of claims being made, as homeowners are becoming more aware of the options available to them.
What Can Homeowners Do?
If you are a homeowner and you feel that you have been sold an unsuitable mortgage product, you may be able to make a claim. The first step is to speak to a professional who can advise you on your options.
It is important to act quickly if you are considering making a claim. There are strict time limits in place, and if you miss these deadlines, you may not be able to make a claim.
Overall, the latest figures from the CML suggest that mortgage claims are on the rise in the UK. While this may be worrying for lenders, it is ultimately a positive development for homeowners, as it means that they are becoming more aware of their rights and are willing to take action to protect their interests.
Conclusion
Mortgage claims are an important tool that homeowners can use to protect their interests. The latest figures from the CML suggest that the number of claims being made is increasing, which is a positive sign for homeowners. If you are considering making a claim, it is important to speak to a professional who can advise you on your options.