Mortgage a Mis-sell?

Bossi

Hi
I am new to the forums, but have been a long time fan of MSE. In 2004 my husband and myself started a business which did very well in its first year. In 2005 we decided to move house, but were unsure how to prove earnings, as our accounts showed us taking basic salaries and then the rest in dividends. I contacted an LTSB Mortgage Advisor, who reassured me it was no problem as she also used to be a Business Advisor and could help. I took along our Accounts, and the thing that sticks in my mind the most from the meeting was when she circled the Sales figure and said "as long as you keep earning that much each year you will be fine". I promptly signed up for a huge mortgage based on that figure (naive I know) I really did put my trust in that. It took approx 18mnths to 2years to realise the mistake, as we were raiding all the reserves from the business to keep up the house. The recession then started to bite, so we couldn't sell up as the value was affected, and consequently our business failed. We have since swapped to interest only, but cant see us staying here long term. I know ignorance is no defence, but would like to hear any views on it?

_Andy_

You made a fraudulent application. What do you want to happen? Compensation? Jeez

Bossi

Thank you for that. No I did not make a fraudulent application, I took my all my details for advice - genuine advice to a reputable institution.

holly_hobby

Oh Bossi ....

Andy, without any sugar on top, has given you the bottom line.

It is unfortunate, that your income was not accurately recorded (with your permission and knowledge), and that you have borrowed in excess of what you could realistically afford long term.

You are currently treading water .. if interest rates move, or you have any income issues ... well I dont have to be blunt and say what the result will be.

Time to look to sell the property, and move into something that wil be healthier to both your bank balance and piece of mind !

I'm sorry for your position, IMHO there is nothing to be gained from a complaint, but a whole load of problems that could arise from the review of the matter by the lender.

Hope this helps a little ..

Holly

GMS

Have a look at what you signed for in terms of income. If the figures were not correct then be careful what you wish for in terms of redress.

As you have said, ignorance is no defence. If I had applied for a mortgage with falsified income figures I would not want to be drawing atny attention to it.

_Andy_

Bossi wrote: »

Thank you for that. No I did not make a fraudulent application, I took my all my details for advice - genuine advice to a reputable institution.

If you signed to say your income was X when it was really Y then yes you did. Not want you want to hear and you can make all the narky replies you want to me but that's the truth.
Instead of looking to blame others (i.e the lender) take some positive action to sorting the situation out (e.g. selling up)

FraudBuster

Anybody want Popcorn?

_Andy_

Re-elect Mayor Goldie Wilson - progress is his middle name

dunstonh

It took approx 18mnths to 2years to realise the mistake, as we were raiding all the reserves from the business to keep up the house. The recession then started to bite, so we couldn't sell up as the value was affected, and consequently our business failed. We have since swapped to interest only, but cant see us staying here long term. I know ignorance is no defence, but would like to hear any views on it?

Mortgages come with risk warnings. Buying a house with a mortgage is not risk free. The risk warnings could not be clearer.

The bottom line is that you put your signature to that application and actually the Lloyds clerk doesnt appear to have done anything wrong. Lloyds lent you money on the basis of what you had earned and what you told them you were going to earn. You failed to continue to earn that, through no fault of the lender, and you unfortunately got into difficulty. That doesnt make it a mis-sale. You just got unlucky and one of the risks of borrowing money hit you.

.....
The justice system works swiftly in the future now that they've abolished all lawyers.
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Thrugelmir

Bossi wrote: »

The recession then started to bite, so we couldn't sell up as the value was affected, and consequently our business failed.

A business can fail for all sorts of reasons. A high proportion of start-ups fail in their first 3 years. So on the basis of what you've written you took a gamble on the basis of one years initial trading. You lost. That's life. Hard I know. Next time establish the business fully before over extending your personal finances.

handytips

This is just a bad luck story, you will have signed to say that everything you have disclosed is correct, i do not see this as a mis sold mortgage, just a mortgage that shouldnt have been taken out in the first place, you wanted it, they gave you it, and now when you cant afford it and property prices have dropped its time to try and blame the whole sorry affair on someone else. Sad very sad indeed.