unable to get over payments from mortgage express due to nationalisation

jr1966

Couldnt find any info on this question so thought someone in here may be able to help?

In 2006 we bought a house and had a mortgage with "Mortgage Express" (bradford + bingley RBS) we overpayed our mortgage from day one and after two and half years built up equity (in overpayments ) of roughly £15,000 this was money that sat in a seperate "pot" but was freely available if we needed it.

After the nationalisation of RBS and its assets (mortgage express) we were sent a letter explaining that our overpayments were no longer available to us and to make a long story short we ended up selling the house as we needed to refinance our business which we ended up losing and now live in rented.

The big question is: Is there any recourse for us? can we put in a claim? or would a nice QC be willing to take this on?

Thrugelmir

jr1966 wrote: »

The big question is: Is there any recourse for us? can we put in a claim? or would a nice QC be willing to take this on?

The lending arm of B&B went under the control of NRAM not RBS went the business went under. Makes a difference as NRAM offer no banking services as such.

What are you looking to claim for? What loss?

jr1966

Thrugelmir wrote: »

The lending arm of B&B went under the control of NRAM not RBS went the business went under. Makes a difference as NRAM offer no banking services as such.

What are you looking to claim for? What loss?

Not totally sure but as a direct result of not being able to claim our overpayments we not only lost our business but also our house. So I guess as a minimum the overpayments but I would love to be able to claim for the lost house and business!

mrginge

did you have any outstanding creditors when your business went under?

jr1966

mrginge wrote: »

did you have any outstanding creditors when your business went under?

Yes.... sold business last August and still paying off loans, tax and credit cards :mad:

Zero_Sum

jr1966 wrote: »

Not totally sure but as a direct result of not being able to claim our overpayments we not only lost our business but also our house. So I guess as a minimum the overpayments but I would love to be able to claim for the lost house and business!

how do you lose your house & business from having more cash in hand. And also if the overpayments were in a seperate pot, which you had access to, how does this differ from just putting the overpayments you would've paid into say a savings account?

jr1966

Zero_Sum wrote: »

how do you lose your house & business from having more cash in hand. And also if the overpayments were in a seperate pot, which you had access to, how does this differ from just putting the overpayments you would've paid into say a savings account?

Easy unfortunatly we needed the money as our franchisor changed there payment terms from 4 weeks in arrears to 1 week in arrears and as we couldnt take the money from our overpayment pot we had to sell the house (at a loss) the franchisor then saw us as a high risk as we had no assets and refused to renew our contract and gave us six months to sell up.....

Thrugelmir

jr1966 wrote: »

Not totally sure but as a direct result of not being able to claim our overpayments we not only lost our business but also our house. So I guess as a minimum the overpayments but I would love to be able to claim for the lost house and business!

What difference would the overpayments made to your finances?

If the business wasn't commercially viable. Or generating enough income to support your outgoings. Then difficult to see how blame can be directed elsewhere.

jr1966

We made the overpayments in order to pay off our mortgage quicker with the view of having the funds available if we needed them with regards the buisness it was highly profitable we had a turn over of £900k plus and net profit in excess of £80K our biggest issue was the change in our payment terms, trying to find £60k in 1 month in the middle of the banking crisis was the final nail in the coffin.

Zero_Sum

jr1966 wrote: »

Easy unfortunatly we needed the money as our franchisor changed there payment terms from 4 weeks in arrears to 1 week in arrears and as we couldnt take the money from our overpayment pot we had to sell the house (at a loss) the franchisor then saw us as a high risk as we had no assets and refused to renew our contract and gave us six months to sell up.....

I see know, misread a bit. Could you not have just remortgaged for the amount you overpaid or just got a loan? Also if it were me, and I thought there'd be a possibility of needing the cash at sometime in the future, I'd rather just put it into a savings account, than overpay into a 'pot', as I'd believe it'd just be less hassle to get the cash.

Thrugelmir

jr1966 wrote: »

We made the overpayments in order to pay off our mortgage quicker with the view of having the funds available if we needed them with regards the buisness it was highly profitable we had a turn over of £900k plus and net profit in excess of £80K our biggest issue was the change in our payment terms, trying to find £60k in 1 month in the middle of the banking crisis was the final nail in the coffin.

The £15k of accumulated overpayments wasn't the outright reason for the downfall of the business then.