Mis-sold buy-to-lets

Lorenzo_Dantier

Not everyone knows that the buy-to-let market is unregulated!!!. We have been mis-sold two 2 year fixed b-2-l mortgages outside our criteria of strictly no overhangs and have been lumbered with a £13K overhang!. Got in touch with the FSA ombudsman only to be flogged off with the advice that the market is unregulated. The government is happy for the economy to boom from investors home & abroad into the b-2-l market and yet it allows IFA's, banks & financial institutions to operate an unregulated market.
After several letters to the 'blue chip' global financial institution who's FA sold us the products, they have persistantly backed their FA although he did not present us with an illustration for us to make an informed decision. The instituttions response was that the "market rules" had change & their FA was not oblidged to give us illustration although he had done so in the past. We have to take some blame for not scrutinising the multi page mortgage offers issued by the solicitor where the overhangs were placed somewhere on the 5th page (as they do) however our trust had been breach by the FA & when questioned responded " you must have changed the vehicles with the lender!!!" Access to lender provided by this organisation is strictly through themselves & restricted between borrower & lender.
Has anyone been in this dilemma & can offer some good advice on how to tackle the problem to bring this institution to account?
ps. tried a legal arm who shpwed little interest in persuing the a case.

dunstonh

We have to take some blame for not scrutinising the multi page mortgage offers issued by the solicitor where the overhangs were placed somewhere on the 5th page (as they do)

So, you want to blame others for you not reading the contract?

Has anyone been in this dilemma & can offer some good advice on how to tackle the problem to bring this institution to account?
ps. tried a legal arm who shpwed little interest in persuing the a case

No rules or laws have been broken so how would you pursue legal action?

silvercar

I doubt there is anything you could do, court is a possibility but the onus would be on you to prove that you were sold something that was specifically against your stated wishes.

Unregulated means that there is no body (eg FOS, FSA etc) that regulates the behaviour of companies in thsi market, it doesn't mean that you can be deliberately deceived and English Law still applies.

Only you can judge if it is worth pursueing.

toonfish

the legal firm showed "little interest" because there is no issue.

you should have read what you were signing, and your solicitor should have clarified it with you - that would b etheir defence I'm afraid

mystic_trev

Lorenzo_Dantier wrote: »

We have to take some blame for not scrutinising the multi page mortgage offers issued by the solicitor

I think you've answered your own question.

mystic_trev

Lorenzo - If there was a Crash in the Property market would you expect the FSA to ensure you were compensated for your losses? After all I expect its your Pension!

mpsavuk

You'll just have to accept that you've been "smoked up like a kipper" mate.

silvercar

Moving forward, you either have to decide not to sell until the overhang finishes or enquire if the mortgages are portable and could be moved to another property.

Clearly a cost of £13k will influence your decision on whether to sell or not.

If you were considering a remortgage rather than a sale, you now have to put this £13k penalty in your figure work and revise your calculations.

PropertyGuru

the cheddar is hard...

Generali

Lorenzo_Dantier wrote: »

Got in touch with the FSA ombudsman only to be flogged off with the advice that the market is unregulated. The government is happy for the economy to boom from investors home & abroad into the b-2-l market and yet it allows IFA's, banks & financial institutions to operate an unregulated market. After several letters to the 'blue chip' global financial institution who's FA sold us the products, they have persistantly backed their FA although he did not present us with an illustration for us to make an informed decision. The instituttions response was that the "market rules" had change & their FA was not oblidged to give us illustration although he had done so in the past. We have to take some blame for not scrutinising the multi page mortgage offers issued by the solicitor where the overhangs were placed somewhere on the 5th page (as they do) however our trust had been breach by the FA & when questioned responded " you must have changed the vehicles with the lender!!!" Access to lender provided by this organisation is strictly through themselves & restricted between borrower & lender.
Has anyone been in this dilemma & can offer some good advice on how to tackle the problem to bring this institution to account?
ps. tried a legal arm who shpwed little interest in persuing the a case.

What redress are you expecting? You signed a contract for thousands (hundreds of thousands?) of pounds which you couldn't even be bothered to read! You then used that money to buy into an investment you didn't understand.

nelly_2

Whats an overhang?

its alright I found out