Tweet
My question to the group is does a loan I took out in 2015 fall under any regulation? Should the lender have been registered/regulated or any other? No assessment was carried out as to my affordability etc.
Pertinent points:
I borrowed in my own personal name (not as a company)
The lender was a Limited company
The loan started in 2015
The lender may historically have lent money to others
No due diligence was carried out on the lenders part
The loan was by way of mortgage first charge on a property I did not intend to live in
The lender was charging interest above standard or open market rates
I borrowed £475,000 from a limited company in my own name against a property that I did not intend to live in.
The loan agreement I have since found out was never signed by the lender
The loan was in February 2015 for £475k secured as a first charge mortgage on the property
The initial term 12 months for 20% accrued interest
At the end of the first year as I had not sold the property, a verbal arrangement was made to continue the loan at the same rate of 20%. Nothing was formally put in writing.
At the end of the second year the lender reduced the interest to 7% again nothing formally in writing
This continued until January 2023 when I secured a new mortgage on the property.
When I went to redeem the mortgage, the lender stated I owed circa 1.1 million which rose within a month to 1.2 million.
My question would be (as I do not know if he has a history of lending) if this was a one-off loan should this lending have met some guidelines? (He was FCA regulated prior to this loan)
Nothing was signed or put in writing for the loan after the first 12 months.
The company he has used to lend the money is not set up for such a purpose.
I paid all the money raised from the new mortgage to him as it was the only way he would agree to release the first charge. He tried to bully me into signing a new loan for circa £400k for the balance of interest he believes I owe him and said as a gesture of good will he would not charge me interest on it.
Does this loan fall under any regulations?
Pertinent points:
I borrowed in my own personal name (not as a company)
The lender was a Limited company
The loan started in 2015
The lender may historically have lent money to others
No due diligence was carried out on the lenders part
The loan was by way of mortgage first charge on a property I did not intend to live in
The lender was charging interest above standard or open market rates
I borrowed £475,000 from a limited company in my own name against a property that I did not intend to live in.
The loan agreement I have since found out was never signed by the lender
The loan was in February 2015 for £475k secured as a first charge mortgage on the property
The initial term 12 months for 20% accrued interest
At the end of the first year as I had not sold the property, a verbal arrangement was made to continue the loan at the same rate of 20%. Nothing was formally put in writing.
At the end of the second year the lender reduced the interest to 7% again nothing formally in writing
This continued until January 2023 when I secured a new mortgage on the property.
When I went to redeem the mortgage, the lender stated I owed circa 1.1 million which rose within a month to 1.2 million.
My question would be (as I do not know if he has a history of lending) if this was a one-off loan should this lending have met some guidelines? (He was FCA regulated prior to this loan)
Nothing was signed or put in writing for the loan after the first 12 months.
The company he has used to lend the money is not set up for such a purpose.
I paid all the money raised from the new mortgage to him as it was the only way he would agree to release the first charge. He tried to bully me into signing a new loan for circa £400k for the balance of interest he believes I owe him and said as a gesture of good will he would not charge me interest on it.
Does this loan fall under any regulations?
Comment