Mis-sold buy-to-lets

mah_jong

nelly wrote: »

Whats an overhang?

its alright I found out

I still dont know what it is?

Can someone illuminate me? Thanks

poppy10_2

Yeah, what is an overhang anyway???

b0rk

Lorenzo_Dantier wrote: »

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.

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.

BTL deals are commercial loans thus business transactions even if for "investment" consumer credit legislation and regulation does not apply. Unless the overhang was not stated within the contract you have no option for redress. The FA isn't regulated when offering BTL mortgages and has no obligation to provide an illustration btw again because it is a commercial loan and expected (but not required) that a qualified accountant and solicitor acting for the buyer will look over all documentation. I'm sorry but you should have read the contract or your independent solicitor and accountant you did have one right? should have pointed out the overhang and any other nasties lurking.

poppy10 wrote: »

Yeah, what is an overhang anyway???

Overhang is an Early Redemption Charge after the fixed, discounted or promotional period has ended sometimes referred to as an extended tie in. Very common on deals significantly below normal fixed or discounted deals, it is basically how they recover the promotional teaser.

Lorenzo_Dantier

Thanks bOrk, in response to your questionon appointed solicitor, It was sold as a 'fast-track' mortgage & it was the lender who appointed the solicitor - we had no say & the FA assured us the process was legitimate

b0rk wrote: »

BTL deals are commercial loans thus business transactions even if for "investment" consumer credit legislation and regulation does not apply. Unless the overhang was not stated within the contract you have no option for redress. The FA isn't regulated when offering BTL mortgages and has no obligation to provide an illustration btw again because it is a commercial loan and expected (but not required) that a qualified accountant and solicitor acting for the buyer will look over all documentation. I'm sorry but you should have read the contract or your independent solicitor and accountant you did have one right? should have pointed out the overhang and any other nasties lurking.



Overhang is an Early Redemption Charge after the fixed, discounted or promotional period has ended sometimes referred to as an extended tie in. Very common on deals significantly below normal fixed or discounted deals, it is basically how they recover the promotional teaser.