A mortgage is a legal arrangement whereby a bank or lender lends a sum of money to a buyer to help the buyer buy a home. There are many different types of mortgages, but almost all mortgages are classified as interest - the repayment of mortgages, with part of the loan (interest) being repaid each month.
An example of a mistake - sale is when your broker or lender does not discuss or give you the cost of the capital repayment mortgage compared to the lower cost interest rates - just mortgage. Also, explain why you are transferring your mortgage to a repayable mortgage, rather than relying on rising house prices. If you only pay interest on the mortgage each month, your adviser should have explained how you would pay it back in the end.
If you have been advised to take out an interest-only mortgage, your mis-selling decision will depend on what type of mortgage is suitable for you at the time of sale and not your current circumstances. If you had a choice between a repayable mortgage and a capital repayment mortgage with a lower interest rate, you should have sold if you only had a mortgage and then left it to you to make your own decision. On the other hand, you can also sell on the basis that you do not need to have any interest - just mortgage due to the lower interest costs.
If you were wrongly advised to only pay interest on your mortgage, you may be entitled to compensation. You may have taken out a mortgage that simply does not suit you and the result could be that you lose it and have to repay a very large sum. It is also important to consider how you would pay back your capital if you took out a mortgage at a lower rate than the mortgage that you may have to repay.