Mis-selling of mortgages in Ireland before 2009 is an issue that affects thousands of homeowners. Whether you were sold an interest-only mortgage, a mortgage that extended past your retirement age, a debt consolidation mortgage, or one based on self-certified income, you may have been misled. If so, you could be entitled to compensation.
What is mortgage mis-selling?
Mortgage mis-selling occurs when a financial institution sells a mortgage product that is unsuitable for the borrower or fails to fully inform the borrower of the risks. This often happened in Ireland during the Celtic Tiger era, when banks were aggressively pushing home loans to increase their market share.
Common examples of mis-sold mortgages include:
- Interest-only mortgages: These mortgages require the borrower to repay only the interest each month, leaving the original loan unpaid. If you weren’t properly informed of the risks—such as what happens at the end of the interest-only term, or what would happen if rates increased—you may have been mis-sold.
- Self-certification mortgages: These allowed borrowers to declare their income without proving it, leading to situations where people were given loans they couldn’t afford. If your lender didn’t verify your income or ability to repay, you likely have a strong case for mis-selling.
- Mortgages beyond retirement age: If your mortgage term extends beyond your expected retirement age, and the lender didn’t fully assess how you would manage repayments post-retirement, you may have a mis-selling claim.
- Debt consolidation mortgages: If you were advised to consolidate smaller debts, such as credit cards or personal loans, into your mortgage without a clear explanation of the long-term costs or risks, this may have led to increased overall debt. If the risks weren’t properly communicated, your mortgage could have been mis-sold.
The scale of the problem
Mis-selling has affected an estimated 200,000 Irish residents. Nearly 15% of all Irish home mortgages fall into the category of mis-sold loans. These products have caused significant financial hardship, with many people now facing arrears, higher interest payments, and financial insecurity. In some cases, families refinanced their homes to help younger generations get on the property ladder, only to end up trapped in unsuitable mortgages themselves.
The mental health impact of mis-sold mortgages
The financial strain caused by mis-sold mortgages doesn’t just affect your bank balance—it can have a profound impact on your mental health as well. Many of those affected by these mortgages have experienced anxiety, depression, and stress, as they struggle to keep up with repayments or face the possibility of losing their homes.
Constant financial worry
Being trapped in a mortgage you can’t afford can feel overwhelming. The rising interest rates and the inability to renegotiate better terms can lead to constant financial pressure, creating a cycle of worry that affects all aspects of life. It’s not just about the money—it’s about the fear of what could happen if you fall behind, including the risk of default, arrears, or even foreclosure.
Feelings of isolation and shame
Many victims of mortgage mis-selling report feelings of guilt or shame, often believing that they were somehow at fault for taking on a loan they couldn’t manage. This belief has been reinforced by years of messaging from banks and even the government, which implied that borrowers were irresponsible. In reality, the blame lies with the financial institutions that misled their customers. Despite this, feelings of isolation are common, with many people suffering in silence, unsure of where to turn for help.
Emotional toll of harassment by debt servicing companies
For those whose mortgages were sold to debt servicing companies, the constant harassment and aggressive tactics to collect repayments can further aggravate the mental health toll. Regular calls, letters, and threats of legal action create an environment of fear and uncertainty, leaving homeowners in a constant state of stress. This emotional strain can affect relationships, work, and overall well-being, making it difficult to focus on solutions or seek help.
Impact on future financial security
For many, the prospect of entering retirement with an unaffordable mortgage causes deep anxiety. Borrowers who were mis-sold mortgages that extend beyond their retirement age, or interest-only mortgages, often worry about how they’ll continue making repayments on a reduced income. The fear of losing financial stability later in life contributes to a sense of hopelessness, as they feel trapped in a situation they didn’t fully understand when they took out the loan.
What to do now
At Join the Claim*, we’re partnering with leading experts in Irish mortgage mis-selling to help you seek justice. The good news is you can make a claim without financial risk, due to their no-win, no-fee agreements.
Legal protection is also available to help borrowers at risk of losing their homes before their claims are resolved. If you are under pressure from a debt servicing company or its agent, or are already in the court process, you have options. Join the Claim and these options will be discussed after your registration.
Compensation could help restore your financial position to what it would have been had the mortgage been correctly sold, potentially amounting to tens or even hundreds of thousands of euros.
If you believe your mortgage was mis-sold, it’s essential to act quickly.
If you haven’t started a mortgage mis-selling claim:
Join the Claim, and we’ll put you in touch with Irish mis-selling specialists who will help you file a complaint with the Financial Services and Pensions Ombudsman (FSPO). If your claim is rejected, (the FSPO is a neutral mediator and is not on the side of the consumer), these experts will appeal your case to the Irish High Court, and if necessary, to the European Court of Justice (ECJ). European law fiercely protects consumers and can hold lenders to account in ways Irish law may not.
If the FSPO has rejected your mortgage mis-selling claim:
If you have already made a mortgage mis-selling claim to the FSPO, and it has been rejected, we offer you an alternative path to justice. Join the Claim, and expert banking professionals will refocus your case and start a new claim.
Use our fast and free online checker to see if you have a mortgage mis-selling claim. If eligible, we’ll connect you with Irish mis-selling experts who will investigate your claim, keep you updated, and aim to get your compensation as soon as possible.
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