The Mortgage Works is a subsidiary of the Nationwide Building Society and provides a range of buy-to-let mortgages to landlords However, the company has come under fire for their lending practices and customers have been compensated for the errors made by the company If you are a customer of The Mortgage Works, it is important to understand what compensation you may be entitled to and how to claim it.
What Led to The Mortgage Works Compensation?
In September 2018, the Financial Conduct Authority (FCA) fined The Mortgage Works £340,000 for failing to treat their customers fairly The FCA found that the company had not properly assessed affordability for some of their buy-to-let mortgages They also failed to communicate the risks associated with interest-only mortgages to customers These failures led to some customers being put at risk of financial difficulty and losing their properties.
In addition, The Mortgage Works also made errors in their calculations for interest payments on some customer accounts This led to customers being overcharged and given incorrect information about their loan balances The company has since rectified these errors and compensated affected customers.
What Compensation Can You Claim?
If you are a customer of The Mortgage Works and have been affected by their lending practices or calculation errors, you may be entitled to compensation The company has pledged to compensate customers affected by the following issues:
1 Affordability Checks: If you took out a mortgage with The Mortgage Works between 2011 and 2013 and were not properly assessed for affordability, you may be entitled to compensation The company has set aside £7.6 million to compensate affected customers.
2 Interest-Only Mortgages: If you took out an interest-only mortgage with The Mortgage Works and were not properly informed of the risks associated with this type of loan, you may be entitled to compensation The company has set aside £5.6 million to compensate affected customers.
3 Interest Overpayments: If you were overcharged for interest payments on your mortgage account or given incorrect information about your loan balance, you may be entitled to compensation The Mortgage Works (uk) compensation. The company has set aside £2.1 million to compensate affected customers.
How to Claim Compensation
If you believe you are entitled to compensation from The Mortgage Works, you should contact the company directly The Mortgage Works has set up a dedicated customer service team to handle compensation claims They will assess your claim and determine if you are entitled to compensation.
To make a claim, you will need to provide evidence of the issue you are claiming for This may include bank statements, mortgage agreements, and any correspondence with The Mortgage Works Once your claim has been assessed, the company will provide you with a decision and if you are entitled to compensation, they will pay it directly to you.
It is important to note that if you are not satisfied with the decision made by The Mortgage Works, you can escalate your claim to the Financial Ombudsman Service The Ombudsman will independently assess your claim and make a final decision However, this may take longer than dealing with The Mortgage Works directly.
What to Do Next
If you are a customer of The Mortgage Works and believe you may be entitled to compensation, it is important to act quickly The deadline for making a claim for affordability checks and interest-only mortgages is 30 June 2021 Claims for interest overpayments must be made by 30 June 2022.
You should contact The Mortgage Works as soon as possible to start the claims process This will ensure that your claim is assessed promptly and you receive any compensation you may be entitled to.
Conclusion
The Mortgage Works (UK) compensation scheme is an important process for customers who have been affected by the company’s lending practices By understanding what compensation is available and how to claim it, customers can ensure they are not left out of pocket due to errors made by the company If you are a customer of The Mortgage Works, it is important to check if you are eligible for compensation and make a claim before the deadline.