Undisclosed Commission Claims 

What is Undisclosed Commission?

Millions of UK homeowners have been overcharged on their residential mortgage, their buy-to-let mortgage, or secured loans.

Lenders that are ‘household names’ have been found guilty of paying and receiving secret commissions that was paid for through higher interest charges, over the whole term of a loan or mortgage. In some cases, the cost to the customer was more than £50,000 – which can be reclaimed under well-established UK law.

Did you use a broker to arrange a mortgage before 2004? If you did they probably got paid a commission.

Sub Prime Mortgages.

Did you take out a secured loan via a broker?

If you did, the broker may have taken a commission that you are paying for.


Secured Loans

Whether the Mortgage was for your home, a buy to let investment or a Commercial property you may be able to claim.


Buy to Let


Commonly asked questions:

Why did I not know about this before?

Most people do not realise that they have been mis-sold a financial product, such as an investment, a mortgage, or a loan until they have seen advertising, press or TV coverage or have been contacted by a company (like us) to explain what has happened and what can be done to get their money back.

Who knew about PPI until Claims Management companies started advertising? Yet 64 million policies were sold, with almost every bank and loan company in the UK paying out compensation amounting to more than £53 billion to the 32 million UK customers who submitted a claim.

But PPI was not the only way banks and financial providers used to make additional profits from their customers.

It has been calculated that more than £10 billion was paid and earned (and can be reclaimed) in secret, undisclosed commissions on residential mortgages, buy to let mortgages and secured loans taken out in the UK.

Which mortgages and what companies?

The biggest offenders are from companies known as sub-prime lenders. Traditionally these lenders sold their mortgages and loans through a network of brokers and mortgage advisers. The sub-prime market focussed on people who may have had trouble obtaining mortgages or loans because of a range of factors such as applicants being unable to prove their income; needing to borrow more than traditional lenders would allow; could not afford the large deposits demanded; or may have had previous trouble with obtaining credit.

But as the use of brokers became more common in the 1990’s and early 2000’s, a wider group of borrowers became involved. At this point the mortgages were attractive because despite the interest rates being higher than the high street banks, many brokers arranged interest only loans without a repayment vehicle in place, which made them cheaper, on a monthly basis, than the repayment mortgages provided by high street banks.

How did it happen?

It was because the interest rates charged by sub-prime lenders was higher than normal and varied from lender to lender, that the secret commissions could be paid without the knowledge of the person taking out the loan or mortgage.

The bribe occurred when the lender paid the financial adviser (broker) a secret payment, that the customer was not told about. You see, the broker, was supposed to work in their customer’s best interest, giving them the best deal available. But many lenders, were prepared to pay that bit extra commission to the broker - which often cost the borrower thousands of pounds in interest over several years – to attract them to put the business their way.

The payment or inducement put the broker in the position where his duty to give impartial advice and act in the customer’s best interest is compromised by his interests to be paid a commission. If the borrower does not know the exact details of this arrangement, then that commission was illegal.

But in most cases, they hid it so well that no one found out. The good news is that it can now be claimed back.

The regulations and laws are not new- There are many examples of secret commissions, bribes, and undisclosed commissions with case law in the UK going back as far as 1875 and as recent as March 2021. All aspects of the laws these claims are based on have been thoroughly tested and proven.

What is new is that a process and funding structure has been put together to fight these cases in the UK courts, though most do not reach that stage because, the evidence against the lender is strong enough to make them want to settle out of court.

This structure brings together, legal funding, leading counsel opinion, full insurance cover (to fully protect you), expert witness reports, and a panel of specialist law firms to represent clients in these legal claims.

The icing on the cake is that knowledge obtained from detailed dossiers on the companies involved allows the law firms involved to request documents from the lenders, that they must produce for the courts, that prove the existence of the commission being paid.

How much can you get back?

The starting point on calculating loss when a decision has been made in your favour is that you should be put back in the position you would have been had secret commission not being paid. This includes the commission itself (which can be £thousands) plus the additional interest you have paid over the length of time you paid the mortgage or loan payments.

The interest paid mounts up over the years and the typical claim value is around £50,000. However, in many cases, the losses are so great, or multiple other factors are involved, that the whole loan or mortgage is written off. This is known as rescission.

Who can claim?

Please contact us if you took out:

  • A secured loan before 2009,

  • A residential mortgage before 31st October 2004 or

  • A mortgage on a Buy to Let property

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