Forced to sell in negative equity

Fatherof2girls

I'm looking for some advice. When I met my future wife, she owned a flat in Kingston and I had a house in Wiltshire. We lived together in her flat and I rented my house out to long term tenants. After we married, we wanted to move out of Kingston and put her flat up for sale but when we applied for a mortgage, the Halifax insisted in writing they would not advance one unless I sold my house as well and repaid the mortgage they held on this. The house was in negative equity. The Halifax also implied verbally we would not get a mortgage from anyone unless I first sold my house. Eventually I did and it cost us £16,000 - almost all the equity in fact in my wife's flat. In hindsight, I believe the Halifax were extremely unreasonable; I had long term tenants in the house whose rent was fully covering the mortgage. My job location meant we could not move to live in my house and we needed a bigger house to start a family. I feel the Halifax could - and should - have offered me other alternatives, such as a Buy-to-Let conversion. Instead, they forced me to take a £16,000 loss on a property that, 5 years later, would no longer have been in negative equity. Does anyone believe I have a complaint that could be pursued against them?

tomtontom

Halifax did not force you to sell, they offered you a product with conditions and you accepted. You have no complaint.

dunstonh

Lender didnt force you. They told you the circumstances they would lend and it was your choice to do that and use them or go with someone else instead.

In hindsight, I believe the Halifax were extremely unreasonable;

It is their money and they are free to decide if they want to lend you more or not. They gave you the option. you had a choice to say yes or no.

I feel the Halifax could - and should - have offered me other alternatives, such as a Buy-to-Let conversion.

They gave you their options.

Instead, they forced me to take a £16,000 loss on a property that, 5 years later, would no longer have been in negative equity.

No. You decided to do it. They did not force you.

Does anyone believe I have a complaint that could be pursued against them?

Cant see anything they have done wrong. Unless they strong armed you into a room and made you sign against your will, they didnt force you do anything.

lincroft1710

Agree with tomtontom.

Lenders assess risks and viability. In this case the Halifax decided that it was a bad risk to allow you to support 2 mortgages. There were alternatives open to you - don't move, find another lender, but you chose to accept Halifax's offer.

nomoneytoday

Other lenders are available for mortgages..

StuC75

Also had the Halifax had done what you wanted and you ran into further problems trying to support 2 mortgages and ended up with both repossessed, or had fallen further into negative equity.. you would also have been here complaining that they were willing to give you too much debt, and that should have been more responsible in there actions...

StuC75

The Halifax were not providing you a 'advisory service' in terms of suitability - they would have been giving you information regarding the products they had to sell (you tend to get a disclaimer to that affect), along with information as to the criteria that this could be given under.. You made the decision at the time, which with hindsight you think that you decided wrongly.. Unfortunately nothing much comes with that kind of guarantee..

Fatherof2girls wrote: »

I feel the Halifax could - and should - have offered me other alternatives, such as a Buy-to-Let conversion. Instead, they forced me to take a £16,000 loss on a property that, 5 years later, would no longer have been in negative equity. Does anyone believe I have a complaint that could be pursued against them?

roonaldo

There is no complaint and you were not forced. Halifax set out their lending conditions which you agreed to.

I assume this property was sold 2009 to 2012 time. Do you think you are the only person in the country to take a hit on a property due to the recession and poor market conditions?

Basically what your post means is you made a bad decision but want to pin the blame on someone else.

mrginge

I think this could be my fault.
You should considering taking me to court.
:doh:

[Deleted User]

mrginge wrote: »

I think this could be my fault.

Put bluntly, it was your fault. You were not in any way "forced" to sell your house. You could have stayed put or tried another lender. Halifax are not responsible for your £16,000 loss and were not under any compulsion to offer "alternatives"

mrginge wrote: »

You should considering taking me to court.

Neither you, nor the Bank have done anything illegal. There will be no court hearing.

EDIT; Caught out by your "joke". :T

Nasqueron

Moneyineptitude wrote: »

Put bluntly, it was your fault. You were not in any way "forced" to sell your house. You could have stayed put or tried another lender. Halifax are not responsible for your £16,000 loss and were not under any compulsion to offer "alternatives"

Neither you, nor the Bank have done anything illegal. There will be no court hearing.

Think mrginge was having a joke as he wasn't the OP :P