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Advice please.
Hi. I will try and be as brief as possible, whilst containing all the facts.
My girlfriend, now wife, took a self certified (self employed, banks wouldnt touch her), interest only, 2nd Charge Loan against our home (she is the registered owner, and she has a previous mortgage), because we wanted to invest in a new business property.
She did this under the advice of a financial advisor, who had helped her in the past. He told her not to go to the high street as he can always do better then any high street bank financial advisor. Boy was this not the case.
Now the problem is, the money was drawn down to her account, and she has been paying interest on it for the past six months. The money was never used for its intended purpose, the offer on the business property fell through. I am going to bullet point the facts.
My girlfriend should never have signed this document, we now realise.
The financial advisor fille dout the application form, without going through the document, brought it to her place of work, and she signed it.
He rushed through the money being drawn down too as he said we needed it in the bank.
It appears that he said the loan was for home improvments on the application form.
He never went throught he extortionate fees and repayment charges with her.
This leaves her stuck with a loan (which she pays £400 interest only off per month), and a massive eary repayment charge.
The loan was for 33k (plus another 3k in fees, which leaves her with £35,900).
The repayment charge is going to take this to £38,200.
They even charges us £15 to send us the ERF detailing what we needed to pay.
We are remortgaging the house (with a reputable bank, although it took a lot of meetings and paperwork because we are self employed), to consolidate our original mortgage and clear the £5000 extra we need to pay of this 2nd charge loan.
We have been on the FSA site, and are trying to contact the loan company to initiate a complaint. We will then contact CAB and maybe even a solicitor.
A solicitor friend of ours has said that the money should have never been drawn down in the first place. Because its intended purpose (as far as we knew) was for a deposit for a commercial mortgage that never materialised.
1. Has the financial advisor done anything wrong?
2. Because she signed the loan agreement, is my girlfriend fully culpable and must abide by the terms and conditions regardless of the circumstances around it?
3. If we can get help, where should we go?
Thanks for any help.
This has been hanging over our heads for months now. As im sure you can understand we are hurting because of this. We know we should have been more careful, and have made a big mistake.
My girlfriend, now wife, took a self certified (self employed, banks wouldnt touch her), interest only, 2nd Charge Loan against our home (she is the registered owner, and she has a previous mortgage), because we wanted to invest in a new business property.
She did this under the advice of a financial advisor, who had helped her in the past. He told her not to go to the high street as he can always do better then any high street bank financial advisor. Boy was this not the case.
Now the problem is, the money was drawn down to her account, and she has been paying interest on it for the past six months. The money was never used for its intended purpose, the offer on the business property fell through. I am going to bullet point the facts.
My girlfriend should never have signed this document, we now realise.
The financial advisor fille dout the application form, without going through the document, brought it to her place of work, and she signed it.
He rushed through the money being drawn down too as he said we needed it in the bank.
It appears that he said the loan was for home improvments on the application form.
He never went throught he extortionate fees and repayment charges with her.
This leaves her stuck with a loan (which she pays £400 interest only off per month), and a massive eary repayment charge.
The loan was for 33k (plus another 3k in fees, which leaves her with £35,900).
The repayment charge is going to take this to £38,200.
They even charges us £15 to send us the ERF detailing what we needed to pay.
We are remortgaging the house (with a reputable bank, although it took a lot of meetings and paperwork because we are self employed), to consolidate our original mortgage and clear the £5000 extra we need to pay of this 2nd charge loan.
We have been on the FSA site, and are trying to contact the loan company to initiate a complaint. We will then contact CAB and maybe even a solicitor.
A solicitor friend of ours has said that the money should have never been drawn down in the first place. Because its intended purpose (as far as we knew) was for a deposit for a commercial mortgage that never materialised.
1. Has the financial advisor done anything wrong?
2. Because she signed the loan agreement, is my girlfriend fully culpable and must abide by the terms and conditions regardless of the circumstances around it?
3. If we can get help, where should we go?
Thanks for any help.
This has been hanging over our heads for months now. As im sure you can understand we are hurting because of this. We know we should have been more careful, and have made a big mistake.
0
Comments
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I'm unsure on this one
there should have been paperwork - and Key Facts Illustrations? - details what was keyed and highlighting any fees? that she should have been given prior to signing and offer??
Does the documents state that the firm are regulated by the Financial Services Authority?0 -
Thanks for the reply.
I will post back with info when i collate it.
She did receive FSA info (pamphlet) i know that of the top of my head.
Ta.0 -
It may be worth you posting on the mortgage board also0
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