Possible mis-sold mortgage

Riggins44

Some years ago My wife approached our bank requesting a business loan to purchase an existing business. The bank persuaded us to borrow more on our mortgage, rather than take out a business loan, on the basis that this would be cheaper. Fast forward several years and the business went bust, we have a joint IVA and a large additional sum on our mortgage that we will still have even after the IVA is completed. My question is whether we have any recourse against the bank regarding the advice they gave us. A business loan could have been included on the IVA with a % repaid, whereas we are stuck with the extra mortgage and the full amount will have to be repaid.

dunstonh

The bank persuaded us to borrow more on our mortgage, rather than take out a business loan, on the basis that this would be cheaper.

Which is true and very common with self employed individuals as the business and individual are the same thing. Limited companies are slightly different as the business is a separate legal entity. However, even there, it is common for directors to give personal guarantees or use personal assets as security.

Was the business self employed or a limited company?

My question is whether we have any recourse against the bank regarding the advice they gave us.

What exactly is wrong with it?
The bank didnt give advice. It stated the terms it would lend the money if you borrowed using the mortgage. Advice on that scenario can only come from either a solicitor or financial adviser.
What warnings did your solicitor give when you asked them about this arrangement? Or did you choose not to employ one to save money? (many dont nowadays and take the chance)