Mortgage industry braced as claims management firms raise prospect of mis-sold interest-only mortgages.
Homeowners who have interest-only mortgages are being warned to steer clear of companies offering to help them make claims for mis-selling against their lender or broker. Claims management companies, many of which have previously concentrated their efforts on the PPI mis-selling scandal, have been ramping up their actitivities in the mortgage market. One, Money Boomerang, has launched a TV advertising campaign aimed at borrowers who were sold their loans through a mortgage broker. The advert asks those who have taken out a mortgage since November 2004 (when mortgage selling regulations were introduced) and who believe the adviser did not check whether they could afford the loan to contact them.....Read more here

Previous Blog from the Watchdog:

Watchdog to rule interest-only loans were NOT mis-sold - allaboutFORUMS