Business Loan Query

jorainbow

Hopefully in the right forum! Looking for advice on behalf of a friend who did up three properties which were originally part of a mill. Two of the three properties were bought on business loan which were then transfered to a commercial mortgage once completed. Part way through the third property the bank stopped offering the commercial mortgages and said that the business loan had to be paid off in full within a 2 year period. The original loan has turned from £180k to £260k in charges to date - the bank wouldnt allow it to be transferred to a loan with payments. Because there were conditions on the property meaning a traditional mortgage wouldnt be available, my friend had to spend 18mth successfully having these conditions removed and could then market it and has an offer for sale.

Advice would be welcome as to whether he has a case against the bank at all. He is clearly paying back the principal (is this the correct word!) and would be happy to pay interest as it would have been on a mortgage but these charges seem astronomical and something which he sees as unfair as the original offer for the mortgage was there.

Can anyone help or point me in the direction of anyone who could assist him?

thanks in advance.

iolanthe07

In view of the large amounts of money involved, your friend needs to seek proper professional advice from a solicitor who specialises in finance, IMHO.

bigadaj

It's a business transaction and relations hip so fos isn't available.

Initiall a formal complaint to the bank is at least wortha try, and as io.anthe says he will need some legal advice.

Banks are still the baddies, so involving the press at some point may add some leverage.