Mortgage a Mis-sell?

kingstreet

Surely, the mortgage has been bought without advice from the adviser? I'd be surprised if the usual "advice and recommendation" service was available.

In this case, I'd say we have a borrower who wanted a "yes" but now wishes they'd had a "no."

If a business owner can't see potential problems for their business, I'm not sure a £20k bank clerk should be expected to...?

Question to the OP - How many other lenders or brokers did you discuss your mortgage with before you bought from LTSB?

DannyboyMidlands

My view is that you took out a monster mortgage, gambled on rising house prices, falsified your income to do so and lost. Get over it and sell the place.

dshart

As you mentioned in the adviser circled a sales figure and said "as long as you keep earning that much each year you will be fine". If you had kept earning that figure would you be in this position now? Did you think this was a reasonable earnings figure at the time or did you just hope?

The reason most lenders want to see several years accounts it to prove that the earnings figures are reasonable. You did not have that and obtained the mortgage based on one years accounts and the adviser pointed that out in what they said to you, so I do not think you have a case for being mis-sold the mortgage.

I was in a similar position when I remortgaged a few years ago where I had just started up my own company and only had one years accounts, I approached my bank HSBC with whom I had a long standing relationship with and requested a mortgage which was accepted. I had to show how my projected earnings for future years would be at least equivalent to my first years accounts.

shortchanged_2

While there is the issue that banks were reckless with their mortgage lending during the boom years and there is some blame sitting on their shoulders, the ultimate responsibility rests with the person who signs the contract. YOU.

Bossi, you knew what risk you were taking when you signed and you state you realised that the clerk was basing the loan on sales figures as opposed to actual earnings. At that point you had the opportunity not to proceed.

But there we are that dream house can seem like a wonderful thing at the time and unfortunately many are brainwashed into having it without seriously thinking through the longer term consequences.

patman99

Surely common sense should have told you that you should have based your mortgage on your wages from the business, not the amount the business was making.

Depending on your circumstances, you could help yourselves by taking-in a lodger (max £65 p/w tax-free), rent your drive out (easy money if you live near a rail station, football ground, concert venue or hospital) or take-on part-time work on top of your day jobs.

If you go to the 'Debt free' board and post an SoA, then you will get some real and serious advice on whether or not your problem is solvable.

poppy10_2

Bossi wrote: »

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

Compensation Cat says... Sue the baxterds!

holly_hobby

This appears to have been a self cert mortgage. And whilst it is indicated (but currently unproven) by the OPs post, that the Adviser may have been instrumental in prompting the OP to proceed with a financial application, that was to be based upon and contained lets say "in accurate" information, it is clearly evident and proven that the OP was wholly complicient in the act, and furthermore willingly entered into a financial contractual arrangement on this basis. Indeed the application was made by the OP in such knowledge, which will be evidenced by their signatory verification, declaring that all data provided, and to be relied upon as part and in support of the application, they confirmed to be both true and accurate.

Its unfortunate, that the OP is now finding her financial situation a little difficult, but longterm affordability and their financial exposure should have been duly considered by them at the point of application - of course they obv felt at the time that they could accomodate the noted costings, or they would not have proceeded with the arrangement - the course to do so, was of course by their own volition.

If a complaint and investigation is made regarding this matter, the adviser may well be proven as having acted in an unlawful and unethical manner, but the same measure may be equally applied to the mortgagor.

Without wishing to appear to condone the actions in this matter, or be seen to disuade them from submitting a complaint, I would encourage the OP to fully consider all variants of how any upheld complaint in this matter may be administered by the lender.

Do hope this helps

Holly