Mortgage Mis sold???

pse_2

All im trying to Achieve is getting a Mortgage for 170K

Can the banks let you borrow a figure (9.6x)what you CAN afford (on Joint salary) in good times, then change to a figure only 4.6 x salary, when they want to be prudent.
Making it not possible to down size your house and the only solution is to stay in existing house paying high mortgage for a house you no longer need.
If I changed location and wanted to move to a different area for work reasons, this means I could never do this.

ILW

pse wrote: »

All im trying to Achieve is getting a Mortgage for 170K

Can the banks let you borrow a figure (9.6x)what you CAN afford (on Joint salary) in good times, then change to a figure only 4.6 x salary, when they want to be prudent.
Making it not possible to down size your house and the only solution is to stay in existing house paying high mortgage for a house you no longer need.
If I changed location and wanted to move to a different area for work reasons, this means I could never do this.

I believe its called a credit crunch, sure you must have heard of it. Some banks went bust from lending 9 times salary and they are not doing it any more.
You could try a different bank with less strict lending criteria though.

VIGILANT22

You will find all lenders have changed lending criteria since 2007...Think of Northern Rock and all the people who took Together Mortgages borrowing up to 125% of the property value..add negative equity to that many will be sitting with 140% mortgage.....
So yes I am afraid they can do as you ask........

getmore4less

Not sure what you are going to achieve.

You claim a miss selling on the previous two mortgages

Bank says yes we should not have sold you these mortgage please tell us what your losses were and we will fix that now as a gesture of good will we will let you keep the current mortgage or you can redeam without penalties.

Do you have any losses from these mortgages, probably none.

New borrowing will be on our current criteria to make sure we don't miss sell you another one.


Forget the misselling angle and focus on the lending criterea you need to get a new loan.

Could you fund some more of the cost from your/company cash reserves and just pay yourself back.

Pay yourself more for a year and take a temp tax hit

Can the wife earnings if any be taken into account.

What about the tax angle of owning a house you don't live in?

neas

Ims till confused... in your earlier post you said you had 280k mortgage already... but then say you are in rented accomodation??

Urghh what?

Cant you jsut sell the 280k property... and then get a new mortgage for 170k? you keep saying you want to borrow less... if thats the case you'd have to sell a house right?

Can you please clarify as this is confusing.

I.e.

Current mortgage 280K
New mortgage 170K
Never missed a payment or had bad credit
Always have minimum of 10K in bank for emergencies

So you have a mortgage currenty of 280k.... and you 'rent'.. so whats the 280k doing?

If you simply had a house worth 280k... then you could sell house, and then get a mortgage for 170k. for new house for wife... while you rented.

I smell a troll as your posts just dont make sense to me at all.

gizmo111

I think what he is saying is that he has a mortgage of 280K, but he has only been declaring around 31K as profit, but he actually turns over £85K so can afford the mortgage. Now he is divorcing he is buying wife a new house as part of the settlement and needs £170k to do so, but as he is only declaring £31K as this is about 5.5 times income, it is not possible and therfore not declaring his full income somehow amounts to mis selling and the banks fault.
Reading the thread I have no idea what the LTV would be and what equity thesre is already............off now to lay in a quiet dark room for a short period.

ILW

pse wrote: »

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?

Still a bit confused, are you hoping that the FSA (or whoever) will force the bank to lend you more money than they want to?

pse_2

I feel like im going in circles.
To clear things up.
Currently have a 280K mortgage on a house that both the wife and I live in.
I want to buy a house for the wife using 70% equity of existing house = 40% LTV of new house.
30% equity of existing house was going towards getting myself a house as this is a 25% LTV of new house. I want to increase this, so will rent till I save up more.
I hope this will clear up things.
As "getmoreforless" has stated quite well I could pay myself more from company , but this will increase my tax burden in a time when I am trying to expand the company.
I may not be approaching the correct angle for the bank to get the loan.
Joint salary is 34K as wife is part time.

pse_2

I have never Not declared to bank Gross or Net of company. They have always had the last two years accounts to work from.

VIGILANT22

Quote: "Currently have a 280K mortgage on a house that both the wife and I live in. I want to buy a house for the wife using 70% equity of existing house = 40% LTV of new house."

So equity in house is £653333.00??????????