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Claim-chaser closes in on mortgages

Loancheck says it already has 200 cases on its files

The mortgage market’s worst fears are set to be realised with the launch of the first claim-chaser specifically targeting the sector.

Loancheck insists that after consulting legal experts, it believes mortgage claims will dwarf those for pensions and endowment misselling. The firm will launch in the next few weeks and already has 200 cases on its files.

Loancheck, which aims to join the Claims Standards Council, says: “At least one in 10 people have a mortgage that is illegally overcharging them.” The firm is set to begin a massive ad push with those words in the coming weeks.

It will initially target the sub-prime market, which was blasted by Edeus chief executive Michael Bolton two weeks ago for “ripping customers off” and “masking backhanders”.

Loancheck will set up a website where borrowers input their loan details and the software decides whether there is a risk that the loan was missold.

Clients can pursue the case through one of Loancheck’s panel of solicitors under a conditional fee agreement known as a no win, no fee arrangement.

Sub-prime mortgages, interest-only mortgages, repossession orders and the misselling of payment protection insurance are top of Loancheck’s agenda. IFAs and brokers are being urged to shop lenders that they suspect are ripping off customers although high commission to intermediaries is also to be probed.

Loancheck director John Whittaker says: “The next potential scandal to hit financial services will be the misselling and misadministration of mortgages.

“The software is mathematical and borrowers have a right to know that their mortgage is right. Our arguments are based on law and the ombudsman is too inund- ated with endowment claims to deal with mortgage cases.”

Hamptons International Mortgages managing director Kevin Duffy says: “It is inevitable that this would happen and the term ambulance-chasing springs to mind.”

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