Mortgage Mis sold???

pse_2

I am currently separating from the wife. We are splitting the profits 70-30 and I have offered to pay mortgage of her new house swell, as it’s all amicable.
I run my own LTD Company as a director.
Always submitted accounts to bank, but like most businesses, they show high gross and low net.
Current mortgage 280K
New mortgage 170K
Never missed a payment or had bad credit
Always have minimum of 10K in bank for emergencies
I asked to reduce the mortgage, but was refused and only offered 100K.
They now say I should never have been offered this amount of money, because of my net profit, as Bank procedure is only 4 x salary and not 9 x salary.
This is the second move of house with this Bank using the same LTD Company and subsequent accounts with gross only increasing over years.
I have been with this bank for 15 years with all my banking and they can see by looking at accounts I have no problems.

Where do I stand in this as I have now put in an official complaint at the Bank and think this now goes to the FSA?

VIGILANT22

What is your actual complaint?

pse_2

Why can I not reduce my mortgage when the requirements from bank have not changed and there has never been a problem.
Why can the bank themselves say I should never have been sold this amount of money, and put me in a situation of not being able to reduce.
By the way, they said they are happy though for me to stay in house and keep paying the mortgage

Company gross 85K

JimmyTheWig

I would suspect that your financial adviser got you to sign something that said you earned more than your net profit. I would guess that as you signed this then it is your problem not anyone elses.
I would tread carefully as you may be in the process (inadvertantly) of telling the bank that you committed fraud!

Out of interest, how have you afforded a mortgage with monthly interest of around £1400 with a gross salary of £31k?
That can only leave you £400 a month for council tax, utilities, living, etc!

JimmyTheWig

pse wrote: »

Why can I not reduce my mortgage when the requirements from bank have not changed and there has never been a problem.
Why can the bank themselves say I should never have been sold this amount of money, and put me in a situation of not being able to reduce.
By the way, they said they are happy though for me to stay in house and keep paying the mortgage

Now I'm really confused.

Why do you want to reduce the mortgage?

Are you allowed to make overpayments? If so, why not just make a £90k overpayment and your mortgage will be reduced!

VIGILANT22

[QUOTE=pse;

Where do I stand in this as I have now put in an official complaint at the Bank and think this now goes to the FSA?[/QUOTE]

When you complain to a Bank/firm they investigate your complaint and give you a clear answer within eight weeks. They should tell you that if you are unhappy with their response you may be able to take your complaint to the Financial Ombudsman Service FOS not FSA

pse_2

I run some of the house as business as its big enough with seperate area. I do not want to go in details of how I afford it all but I have a very good accountant.

The only paperwork we have ever had to submit is a letter from accountant with projected COMPANY INCOME for that year.

As I said before, I am buying the ex-wife a house in seperation.

ILW

pse wrote: »

I run some of the house as business as its big enough with seperate area. I do not want to go in details of how I afford it all but I have a very good accountant.

The only paperwork we have ever had to submit is a letter from accountant with projected COMPANY INCOME for that year.

As I said before, I am buying the ex-wife a house in seperation.

Still cannot see how you were mis sold anything. You asked to borrow the money and the bank agreed to lend it to you, where is the mis selling in that?

neas

did the projected income actually come to fruition? oO

So you are wanting to borrow more money? Let me get it striaght:

House A( You keep it) _has mortgage of 280k (is this how much is left to pay?)
House B (new wife house) Want to borrow another 150k

So you are not reducing mortgage but increasing it overall? I.e. 430k total borrowing?

or am i confused?

JimmyTheWig

Then why don't you ask your very good accountant?
He's qualified and knows your situation. I'm sure he'll be better placed to answer than we are!

I still don't understand why you want to reduce your mortgage. If you are buying your ex-wife a house I would have thought that you would need to increase your borrowing?

VIGILANT22

Your situation is rather complex.....this forum only gives opinion and understandably you don't want to disclose your details on here...I suggest you contact the bank and make an appointment with a Senior Adviser as I suspect you may only have seen a Customer Service Advisor who probably didn't understand your overall position...which Bank???