The Telegraph has reported that a record fine of £1m has been handed to Birmingham-based mortgage broker Gurpreet Singh Chadda.
The Financial Conduct Authority (FCA) said Mr Chadda had told customers the price offered was based on an independent valuation of their property, when this was not the case.
In some cases investigated the seller received less than half the market value of their home, and in two of these cases the seller received only 38% of its true value.
Aside from the poor selling price, Mr Chadda also charged "grossly unfair and excessive hidden fees" to those who were selling their home, most of whom were already in financial distress.
The FCA estimated that Mr Chadda made almost £700,000 from the sales.
