Mis-selling claim upheld by ombudsman

A victory for a householder who had his home repossessed after being mis-sold a mortgage could set a precedent preventing others from losing their property. The homeowner was a housing association tenant, with fixed rent for life, when a mortgage adviser persuaded him to buy the property. He was eventually repossessed, but lodged a complaint that his mortgage adviser ‘failed to consider what would happen when the attractive discounted [mortgage] rate ended’. The Financial Ombudsman Service awarded compensation, ruling that the adviser had broken Financial Services Authority guidelines that advice must be ‘suitable’.