Mortgage to pay business loan????

[voyager]

Hi to all!

I am new member to this site and joined to get some answers about my re-mortgage that was used to pay back a business loan to the bank and would like to know if I have a case to reclaim it as I have been informed by friends and family the bank acted irresponsibly and should not have given me the money at the time as I was unemployed, will explain in more detail below:-

I was loaned 40,000 from my bank to get a franchise business up and running in the form of a 20,000 loan and 20,000 overdraft. Unfortunetly the main franchise was about to go under and decided to end the business before I went with them. My franchise was also in trouble and used all the overdraught and business loan. A meeting was held to discuss how the money would be paid back and it was agreed the debt would be split three ways between the bank my father and myself.
At the time I was broke and unemployed so the bank agreed to use my house and remortgage for 15,000 and since then I have struggled with the high cost of the mortgage and was also made redundent last year due to the lack of work in my industry.

Taken in mind the business was a Ltd company did they act responsibly and is this a viable case to reclaim some back?

[stivis]

Re: Mortgage to pay business loan????

Firstly you need all paperwork on this, bank letters,most important that you try to get hold of the bank memos,your notes from meeting all that you can get
what appears to have happened is the bank have circumvented the Limited Liability of the company , by selling you the mortgage.
This was to the banks advantage and not yours !!
(yes I have been that soldier,and well conned by the bank,my advantage was I kept everything)
The product (I hate that word for amortgage)was most likely mis-sold,
If you hadn't taken out the mortgage, the liability would have lain with the Limited Company,
While this may appear a bit negitive, It is not. you can fight back......I've done it

Oh the fact that you were unemployed at the time does also have a bearing on the mortgage

[voyager]

Re: Mortgage to pay business loan????

Thanks for the reply and I am a bit of horder with paper work so I wil have a good dig tonight. Did you fight this yourself at the time or did you get a solicitor, is it easy to do yourself?

[stivis]

Re: Mortgage to pay business loan????

I did it all myself,what I should add is make notes from any meetings you had with bank managers, if you remember anything write it down

[voyager]

Re: Mortgage to pay business loan????

Thank Stivis! not getting much other input on this.

I am debating on finding a solicitor on a no win no fee basis as I am not a person that has knowledge in legal matters, however depending on the amount of work involved it might be better to do it myself due to the amount I would have to forfit.

It would be really great to win some money back at the moment as I am having to work on a min wage to pay 700 pound mortgage as I was made redundent from my skilled occupation in Engineering. Also have not been able to find a suitable job since february last year. My plan is to go back to retrain into something that will be secure but just need that little financial push.

Can you advise on what form I would need to obtain to do this? and any other information you can share would be very appreciated?

[stivis]

Re: Mortgage to pay business loan????

All you really need is to find a place to start,I am of the thought that any flaw should be exploited by you,

If you can find a "no win no fee" solicitor great, but do as much donkey work yourself, it makes it easier for them and makes you more welcome with them.

If you can't then the forum is best,to be honest I've found the forums,better than solicitors(sorry about that, if there are any members of the law society viewing) that and Ellinger's book on Banking Law

[voyager]

Re: Mortgage to pay business loan????

Their is one detail I forgot to tell you that my father stood garantor for this business loan at the time and he had a big unfluence on the bank due to also having a business. He has no ties with the bank at present due to being retired. Could he still be liable? if so, I think it's check mate to the bank.