Mis-Sold Mortgage Claim Value

Mis-sold mortgage compensation

One of the main problems with mis-sold mortgage claims is the difficulty which is presented by trying to calculate the value of the claim and the appropriate compensation. In the UK the purpose of compensation, whether it is awarded by a court or by an ombudsman, is not to punish the defendant for his wrongdoing or to give the claimant a windfall. Instead, compensation is meant to restore the injured person to the position he would have been in but for the defendant’s wrongdoing. In other words, compensation is meant to cancel out any loss which the claimant has suffered.

In the case of a mis-sold mortgage this can be a complicated calculation, because if the mortgage had not been mis-sold then the claimant might never have been able to get on the property ladder. Even though meeting the mortgage payments might have caused the claimant financial difficulties, if the property is worth more at the time of claiming than it was when he took out the mortgage, he will actually have benefitted as he will have made a profit on the property and the increase in his equity is likely to outweigh any loss which he has suffered.

Due to this, there can be a number of legal complexities involved in trying to claim compensation for a mis-sold mortgage, and you may well find yourself in the somewhat unusual position of having a strong case which is not worth pursuing. Market fluctuations and complications involving the value of your mortgage and property may mean that you will need to seek expert advice in order to establish whether it is worth trying to make a claim on your mis-sold mortgage or not. If you have found yourself in this situation, we offer a Find a Solicitor service which may be able to aid you.