Did You Purchase an Interest Only Mortgage After October 2004?
If So, You May Be Able To Claim
No Win No Fee Mis-Sold Mortgage Claims
Contingency Fee Agreements
A Contingency Fee Agreement is between a client and solicitor and revolves around the idea of the solicitor is only paid if the claim is successful. The main principle of a contingency fee arrangement is that when it comes to invoicing at the end of a case the solicitor cannot charge their client more than they would have done regardless of whether he had taken the case on the normal basis. If the case is lost then no fee will be paid to the solicitor.
If a claim is successful a solicitor can take between 10-29% VAT after the completion of a the case which will be agreed between the client and solicitor.
No Win No Fee Explained
At Mis-sold Mortgage Claims all of our solicitors work on a No Win No Fee agreement with all our clients. No Win No Fee refers to legal services provided by way of an arrangement that generally means you won’t be expected to pay legal fees unless the case is successful. It allows any member of the public to bring forward aMis-sold Mortgageclaim without having to fund the costs themselves up front.
No Win No Fee arrangements are most commonly made available by solicitors offering clients a Conditional Fee Arrangement as well.
Conditional fee agreements (CFAs)
With a Conditional Fee Agreementif your case is unsuccessful, you will not pay your solicitor anything at all.
If your case is successful, you will pay your legal representation costs for doing so. These vary depending on which solicitor you choose to represent yourself. However, these costs are usually recovered from the defendant/losing party and your solicitor will manage this process for you at the end of the case.
You are also sometimes required to pay a Success Fee to your solicitor. This is a percentage of your compensation if you win the case and the amount will be agreed between yourself and the solicitors around the beginning of your case but is never more than 25% of your complete compensation.
The success fee will be charged between 0 – 25% and is assessed by solicitors on an individual case basis. When deciding on the success fee this will be decided different by each solicitor via an individual assessment criteria and usually the case will be assessed on:
– The prospects of the matter and level of risk for the solicitor bringing the case forward
– The cost associated with bringing the case forward
– The likely level of the damages
– The timescale for the case to be resolved
Will I Ever Have to Pay Anything?
In addition to the success fee set out above, in the event that you terminate the agreement between yourself and the solicitor other than during the cancellation period then the solicitor may charge a termination fee. The cancellation period is usually around 2 weeks from the signing off paperwork but can vary.It is best to discuss this carefully with your chosen solicitor so your understand your rights under your CFA.
Are there any other options instead of No Win No Fee?
If you do not want to enter into a No Win No Fee style arrangement with your solicitor, some other options are available such as:
Legal expenses insurance: You may have this included with a home or car insurance policy. There is generally a limitation on the types of claim you can bring, but it may be worth speaking to your insurer for further details.
Public funding: Legal Aid is available in very limited circumstance in medical negligence claims. Each case is unique and we suggest speaking to the Legal Aid Agency for further information.
Private payment: You always have the option to fund your claim yourself by paying your chosen solicitor at an agreed rate. However, there may also be other costs called disbursements (court fees, expert’s fees, counsel fees etc.) which would also need to be paid.
What is ATE Insurance and Do I Need It?
ATE is a product your solicitor may recommend to yourself to take out alongside your CFA. It provides an insurance policy to cover any potential costs in the event your case is unsuccessful. Generally, ATE is designed to cover the costs of disbursements such as (Relevant records, expertFees, barristers fees etc.) And/or and other possible adverse legal costs orders made for you to pay the defendant’s legal costs. If you have ATE in place, such costs can be sheltered by the insurance policy.
In Mis-sold MortgageClaims, more often than not a claimant who is unsuccessful does not have to pay the Defendant’s legal costs due to a rule called Qualified One Way Costs Shifting, which has made ATE insurance less of essential. However, it is a product that should always be considered and discussed further with your solicitor. The costs of ATE Insurance Policies vary from case to case, but the costs are mainly paid at the end of a successful case, meaning there is no up font costs to you. Also, if you lose your case, generally, ATE policies are “self-insured” are there is no cost to yourself at the end of the process.
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