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Re: do i have a case for a mis sold mortgage by GE money
Please can anyone tell me if I have been missold my mortgage and second mortgage - GE Money took on a remortgage for us but would only lend £183000, we needed more to cover our situation and we were told that their 'sister company' Mortgage Top Ups would cover the difference of £40000 - we went with them, both loans being interest only, as we were advised that with an upcoming sale of our property pending we would be well able to manage. We are both self employed and as we do our own accounts etc we self certified our earnings.
They have subsequently sold our two mortgages on and the Top Up mortgage is beyond due - we told them we had a potential buyer - the first purchaser having dropped out due to a recession which left him without funds to purchase. We had maintained payments for over a year, not having realised we needed to clear the loan which ended in 2011, they wrote to us in 2012 saying they missed the fact the loan was due and demanding payment - it was interest only, so the full amount would be due, but they quoted £36,000 because we had maintained payments during the year they had missed the end of the loan. When we spoke to them they agreed we could continue making payments at the same level, so paying interest, until the sale went through, but when we received documents some time later they had put the amount owed back up to £40,000.
Since that time we have been through various ringers with potential buyers, keeping the lenders updated as it all went on, and then we finally found a group who wished to purchase and who wanted an exclusivity agreement - we gave them one, after legal advice, and then waited, we granted extensions because they claimed the were having difficulty dealing with the council and clearing any plans they had for the property. In the end, after nearly 2 years of waiting for them, we spoke to the council and discovered that they had not been pushing as we had been led to believe, and that their plans were not acceptable. We confronted them and then stated that we would not actively pursue a sale for the rest of the year, 2015, as the legal costs involved for us in all this had been £5000 and we could not afford to incur further costs at that time, we also had agents fees to pay and so we asked for time to recoup our losses and then try again.
We heard nothing, and took the silence to mean it was okay but in August 2015 our direct debit to Mortgage Top Ups changed and payments were then going to Alev Uk Secured Credit. We contacted Top Ups to find out what was going on and got no response and then we heard from Alev, who stated that nothing had changed and we would hear from them in due course but not to worry.
We have made an additional £25,000 of payments since the loan ended and are now being told that we owe £4835.82, are in arrears and will be taken to court for repossession unless we clear the amount immediately.
We requested to change to a repayment loan, we were denied, we provided full accounts and other information, such as our ability to expand our business, our ability to increase the rent for our tenant (we rent the upper floor and two trailers in the garden to our business partner, and have since 2000, years before the original remortgage with GE Money and Top Ups.
We have no email address, only a PO Box mail address and are getting constant telephone calls, despite our having requested only written communication from Alev.
When the loans were sold we tried to get answers from GE Money and details for Top UPs, stating, as we had been told that Top Ups was their sister company and GE Money denied all knowledge of them and said they did not have a sister company.
We are going crazy with all this right now. We feel we should have been offered a repayment option from the beginning of the default position, or even from the beginning of the loan - or we should not have been offered a remortgage and top up if our earnings did not allow for a repayment option. We may have been stupid in not seeing all this at the time but we had other things going on and more than full time work and our brains obviously did not pick up on things - stupid to trust an agent of GE Money and not check up on things further but he was, it seemed very open and honest and repeatedly stated he was giving us good advice but could not recommend any course of action to us - he just wanted to help us out until our sale went through.
We are not sure exactly what we paid for but we thought the man was from GE Money itself and yet we believe there was a broker fee paid - we would need to get into storage and go through all the documents we hold, but some of our business and personal records were damaged and lost when we had a bad water leak in the property.
Is there any advice or further resource we could be pointed to - we just want to know where we stand - can they drop the loan to 36k and then put it back up to 40k without our agreement. We did not get any options or chance to negotiate this in 2012 and 25k is a lot to pay over the odds without this option being offered at all.
Please if anyone is reading this, watching it or can let us have some ideas or assistance on how to go forward we would be most grateful. We have requested a repayment option. We have mentioned in our accounts we have a tenant and we have mentioned we have the ability to both increase rent and expand the business to meet any increased payments requested if the switch to repayment were offered. We have requested it be over the same period as the mortgage has remaining so they both end at the same time.
We have yet to look into the implications of paying off the mortgage with no proper endowment in place, or requested by GE Money when we took the mortgage out with them.
Such a pickle and we are kicking ourselves but we have to just get on and get it sorted, but we are not too proud to ask for help and take the 'you idiots' comments that come with it.
Please, can anyone help us or offer suggestions - we are being threatened today with action to repossess the house.
Please can anyone tell me if I have been missold my mortgage and second mortgage - GE Money took on a remortgage for us but would only lend £183000, we needed more to cover our situation and we were told that their 'sister company' Mortgage Top Ups would cover the difference of £40000 - we went with them, both loans being interest only, as we were advised that with an upcoming sale of our property pending we would be well able to manage. We are both self employed and as we do our own accounts etc we self certified our earnings. They have subsequently sold our two mortgages on and the Top Up mortgage is beyond due - we told them we had a potential buyer - the first purchaser having dropped out due to a recession which left him without funds to purchase. We had maintained payments for over a year, not having realised we needed to clear the loan which ended in 2011, they wrote to us in 2012 saying they missed the fact the loan was due and demanding payment - it was interest only, so the full amount would be due, but they quoted £36,000 because we had maintained payments during the year they had missed the end of the loan. When we spoke to them they agreed we could continue making payments at the same level, so paying interest, until the sale went through, but when we received documents some time later they had put the amount owed back up to £40,000.
Since that time we have been through various ringers with potential buyers, keeping the lenders updated as it all went on, and then we finally found a group who wished to purchase and who wanted an exclusivity agreement - we gave them one, after legal advice, and then waited, we granted extensions because they claimed the were having difficulty dealing with the council and clearing any plans they had for the property. In the end, after nearly 2 years of waiting for them, we spoke to the council and discovered that they had not been pushing as we had been led to believe, and that their plans were not acceptable. We confronted them and then stated that we would not actively pursue a sale for the rest of the year, 2015, as the legal costs involved for us in all this had been £5000 and we could not afford to incur further costs at that time, we also had agents fees to pay and so we asked for time to recoup our losses and then try again.
We heard nothing, and took the silence to mean it was okay but in August 2015 our direct debit to Mortgage Top Ups changed and payments were then going to Alev Uk Secured Credit. We contacted Top Ups to find out what was going on and got no response and then we heard from Alev, who stated that nothing had changed and we would hear from them in due course but not to worry.
We have made an additional £25,000 of payments since the loan ended and are now being told that we owe £4835.82, are in arrears and will be taken to court for repossession unless we clear the amount immediately.
We requested to change to a repayment loan, we were denied, we provided full accounts and other information, such as our ability to expand our business, our ability to increase the rent for our tenant (we rent the upper floor and two trailers in the garden to our business partner, and have since 2000, years before the original remortgage with GE Money and Top Ups.
We have no email address, only a PO Box mail address and are getting constant telephone calls, despite our having requested only written communication from Alev.
When the loans were sold we tried to get answers from GE Money and details for Top UPs, stating, as we had been told that Top Ups was their sister company and GE Money denied all knowledge of them and said they did not have a sister company.
We are going crazy with all this right now. We feel we should have been offered a repayment option from the beginning of the default position, or even from the beginning of the loan - or we should not have been offered a remortgage and top up if our earnings did not allow for a repayment option. We may have been stupid in not seeing all this at the time but we had other things going on and more than full time work and our brains obviously did not pick up on things - stupid to trust an agent of GE Money and not check up on things further but he was, it seemed very open and honest and repeatedly stated he was giving us good advice but could not recommend any course of action to us - he just wanted to help us out until our sale went through.
We are not sure exactly what we paid for but we thought the man was from GE Money itself and yet we believe there was a broker fee paid - we would need to get into storage and go through all the documents we hold, but some of our business and personal records were damaged and lost when we had a bad water leak in the property.
Is there any advice or further resource we could be pointed to - we just want to know where we stand - can they drop the loan to 36k and then put it back up to 40k without our agreement. We did not get any options or chance to negotiate this in 2012 and 25k is a lot to pay over the odds without this option being offered at all.
Please if anyone is reading this, watching it or can let us have some ideas or assistance on how to go forward we would be most grateful. We have requested a repayment option. We have mentioned in our accounts we have a tenant and we have mentioned we have the ability to both increase rent and expand the business to meet any increased payments requested if the switch to repayment were offered. We have requested it be over the same period as the mortgage has remaining so they both end at the same time.
We have yet to look into the implications of paying off the mortgage with no proper endowment in place, or requested by GE Money when we took the mortgage out with them.
Such a pickle and we are kicking ourselves but we have to just get on and get it sorted, but we are not too proud to ask for help and take the 'you idiots' comments that come with it.
Please, can anyone help us or offer suggestions - we are being threatened today with action to repossess the house.
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