Home finance and mortgage advice

If you’ve received mortgage advice that’s resulted in you losing money, and the firm that gave you the advice has since failed, you may be able to claim compensation with FSCS. You must have received the advice on or after 31 October 2004.

FSCS could cover you for the following types of event:

  • If you weren’t advised about the different types of mortgage and chose a mortgage that was unsuitable, and consequently lost money.
  • If specific details of your mortgage were incorrect, for example, a longer term was selected than you intended or needed, meaning you lost money.
  • If you were advised to switch mortgages but weren’t given an adequate explanation of why you should, and consequently you lost money.
  • If you were advised to take out a lifetime mortgage that was unsuitable for you at the time, meaning you lost money.
  • If a financial adviser recommended that you take out a mortgage endowment policy. This will usually be an investment claim, which FSCS has protected since 28 August 1988.

Since 6 April 2007 FSCS has also covered home reversion plans, a type of equity release where you sell some or all of your property in return for a lump sum or regular income, staying in your home as a tenant but paying no rent.

Since 6 April 2007 we’ve also protected home purchase plans.

Home finance

Mortgage & endowment advice

We may be able to compensate you for mortgage advice you received after 31 October 2004 and endowments you were mis-sold after 28 August 1988, if you’ve lost money as a result, and the advisor has since failed.

  • up to £85,000 per eligible person, per firm.


  • up to £50,000 per eligible person, per firm.


  • 100% of the first £30,000 and 90% of the next £20,000 up to £48,000 per eligible person, per firm.