Seven mortgage brokerages have been declared in default by the Financial Services Compensation Scheme (FSCS) and customers may be entitled to compensation if they lost money through their dealings with the firms.

The FSCS is the UK’s statutory compensation scheme for customers of regulated financial services firms.

A declaration of default means the FSCS is satisfied the firm is unable to pay claims for compensation themselves. The firms in default include:

- Access All Finance Limited, Durham Road, Gateshead, NE9 6HU;

- Redbrooke Mortgage Management Limited, Houghton Hall, Hall Lane, Houghton le Spring, Tyne and Wear, DH5 8DB;

- Derick Anthony Whewall, Beverly Close, Normanton, West Yorkshire, WF6 1BU;

- GRF Financial Limited, New Line, Greengates, Bradford, West Yorkshire, BD10 0BU;

- Orchard Financial Limited, High Street, Owston Ferry, Doncaster, DN9 1RH;

- Mortgage Master (UK) Limited, 29 Smallbrook, Queensway Birmingham, West Midlands, B5 4HE; and

- Premiere UK Limited, Linden Grove, Amberstone, Hailsham, TN34 1DT.

The FSCS does not charge individual consumers for using its service and for claims relating to mortgage advice or arranging, the FSCS can pay up to £50,000 per person per firm for defaults on or after January 2010.

Mark Oakes, Head of Communications for FSCS, said: “We have already started paying compensation in respect of these firms. However, we are encouraging anyone who has not been contacted by us and believes they may be owed money as a result of their dealings with either one of these firms to get in touch with the FSCS.” 

FSCS is free for consumers and was set up by Government in 2001. The scheme is funded by the financial services industry and has helped more than 4.5 million people, paying out more than £26 billion in compensation.