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GARCH

Pensioners sue mortgage lender over self-cert interest-only loan

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Unbelievable... and yet entirely believable. 

 

Surely they ought to be getting prosecuted for mortgage fraud rather than standing any chance at all being able to sue the lender.

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Anyone can take a case against anyone in this country.

Wether itll get laughed out of court is another thing.

BTL loans fall under commercial loans i.e not consumer. The assumpion is its down to the buyer to sort their own advise out.

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Surely there is no way they can win this case, they should be prosecuted for wasting the courts time.

It's nice to see in the comments that they all condemn the activities of the couple in question and not the lender. However, this is a perfect example of the type of dubious lending activity which has fuelled the current bubble in London, hopefully we're about to see the back of this for good!

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2 minutes ago, Smiley George said:

Surely there is no way they can win this case, they should be prosecuted for wasting the courts time.

It's nice to see in the comments that they all condemn the activities of the couple in question and not the lender. However, this is a perfect example of the type of dubious lending activity which has fuelled the current bubble in London, hopefully we're about to see the back of this for good!

In this case it was dubious borrowing.

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1 hour ago, crazypabs said:

Sell the house and downsize as they don't need 15bedrooms anymore, unless they are running a brothel

Their issue is that the house is only a three bed terrace and they'd have to move out very far to be able to afford anything as nice with just the increased equity accumulated since February 2008. Definitely cake and eat it going on. 

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Given that there are hundreds of billions of loan assets and billions of pounds a year of interest income riding on this, I'd imagine that the banks will drag any case against them that isn't absolutely rock solid all the way to the highest court in the land rather than settle. Time will tell.

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45 minutes ago, Bland Unsight said:

Given that there are hundreds of billions of loan assets and billions of pounds a year of interest income riding on this, I'd imagine that the banks will drag any case against them that isn't absolutely rock solid all the way to the highest court in the land rather than settle. Time will tell.

True.

BTL is commercial lending. It says so in the t+cs. Unlike consumer lending, commercial lending assumes you are aware you are swimming in a shark pool, wearing a bacon swimsuit.

It would be helpful to get an open goal court ruling confirming this. Just so theres a recent court ruling, on a bit of paper, to wave at the idiots.

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It's the sheer brass neck of it all that gets me.  It's sociopathic, no right thinking, moral individual would behave this way.  I sincerely hope they lose everything.

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13 hours ago, GARCH said:

In the words of the ring announcer from UFC:  Here... we... go!

https://www.moneymarketing.co.uk/pensioners-sue-mortgage-lender-self-cert-interest-loan/

NB.  MM.co.uk is a good website - recommended reading for HPC-ers.

...looks like internal 'misunderstanding' within the lender ....commission on a loan of this size must have been good.....:rolleyes:

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There could be a strategy here.

In the late 90 I worked(briefly) for a crap life insurer, reviewing endowment mortgages.

In their 'enthusiasm' to sell endowment mortgage the company had failed to get the signature of a lot of customers. Sometimes the customers signatures from very high performing sales people tended to be the same.

Edited by spyguy

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11 hours ago, spyguy said:

True.

BTL is commercial lending. It says so in the t+cs. Unlike consumer lending, commercial lending assumes you are aware you are swimming in a shark pool, wearing a bacon swimsuit.

It would be helpful to get an open goal court ruling confirming this. Just so theres a recent court ruling, on a bit of paper, to wave at the idiots.

Correct, unregulated loans can have any T&Cs and there is no duty of care to the borrower. Violate the T&C's and expect to lose everything, even if its 100x the violation amount.

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How can the solicitors charge £240K and still NOT repossess the pensioners property after lending  £400K. The pensioners are being represented by a non legal person and dealing out of of court! WTF

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This is win win for the DEBTjunkie brains trust. Test the water with a cheeky little court case, win the case? Job done free money no mortgages to pay off means you can charge whatever you like on rents without being affected by plucky tenants threatening voids, go ahead pal, I don't need the cash flow so can charge what I like now etc... or lose the case and BOOM ? up go the rents to pay all the legal fees. In any business if the costs go up the customer pays ultimately. Either way you CAN NOT I repeat CANNOT lose in bricks and mortar. Innit.

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On Wednesday, April 19, 2017 at 9:48 PM, Bunfight said:

It's the sheer brass neck of it all that gets me.  It's sociopathic, no right thinking, moral individual would behave this way.  I sincerely hope they lose everything.

Nah they are a couple of innocent pensioners that got tempted into committing mortgage fraud by evil bankers that didn't do their homework Are pensioners more equal under UK law, you bet.

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On 20/04/2017 at 7:50 AM, interestrateripoff said:

Can I sue the banks for lending to these people which ensured I had to pay a higher rate on my mortgage to cover the risk....

Maybe, it sounds like you were the victim of an interest-rate-rip-off.....:ph34r:

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