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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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A mis sold commercial mortgage (non residential / not buy to

Resolved Question:

A mis sold commercial mortgage (non residential / not buy to let): where can I find what the law says about this please? I took out the mortgage in 2007, but I have not been able to use it for any business purposes. I would like to write to my mortgage provider to investigate the matter - accurately backing this up with what the law says.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.

Hello my name is ***** ***** I will help you with this.

Are you still paying it please?
Alex

Customer: replied 1 year ago.
Is the £38 in addition to what I've already paid? To be honest, I do find it easier to communicate via writing though - as it just gives me time to think through the complexities.
Expert:  Ash replied 1 year ago.

Sure thats fine. I asked are you still paying the mortgage please?

Customer: replied 1 year ago.
I had been doing until a few months ago when I just couldn't make the payments and my case has been passed to the collections / recoveries department of the bank. They have sent me a demand for payment.
Expert:  Ash replied 1 year ago.

Ok. If you have been Missold then you have 6 years in which to make a complaint.

If you have been Missold then you can complain to the financial ombudsman too, after the mortgage provider has investigated. You can go to the ombudsman once you have had the final response, they offer a free, independent service and can examine your complaint at www.financial-ombudsman.org.uk

Can I clairfy anything for you about this today please?

Alex

Customer: replied 1 year ago.
I have already been in touch with the Financial Ombudsman - they have stated that they do not deal with commercial / non-residential mortgages.
Customer: replied 1 year ago.
When asking the bank to investigate, I thought that it would be better to have an idea about what the law actually states regarding missold commercial (non-residential) mortgages - quoting / referring to this in my written request to them. Please can you provide this information or direct me to a source? Also, can I request that the bank puts a hold on any further demands for payments while the investigation is taking place? I am aware that my rights are limited compared to a residential mortgages.
Expert:  Ash replied 1 year ago.

Yes it's more limited. But if they told you one thing and delivered another this is breach of contract by misrepresentation. But if you just didn't read the terms or didn't make sure you could afford payments this is harder to argue.

You would need to show they have lied about something. The bank can investigate through their formal corporate complaints procedure. You can ask them to suspend payments although it's unlikely that they will.

So you need to consider the nature of the misselling.

Does that clairfy? Alex

Customer: replied 1 year ago.
The mortgage was for a derelict building which would not be fit for purpose until development. I took the mortgage out on the understanding that the bank would at least partly financially support development of the building so that it would be fit for use as a business - which the bank agreed to (but, nothing in writing - unfortunately). Due to the unusual nature of the location, Discharge of Conditions for start of development was a very expensive and lengthy process - by which time the recession had arrived.
Although I was in the final stages of securing a substantial grant to develop the property (about £150,000), I still needed at least £50,000 from my bank - which they were no longer willing to lend me and stated that their criteria had changed (i.e. for new businesses, they no longer looked at forecast profits, or funding risky projects, etc.) I was owing quite a lot on my credit cards by this stage, but no defaults. etc. Since then, I have been continuing to pay relatively high interest on a derelict property which I have been unable to use, as well as paying for maintenance, etc. Having failed to sell the property without making a huge loss, I have now re-applied for the same grant and I am aiming to raise the match funding in a different way, but I have recently started to struggle making the payments - due to a change in circumstances.Are you able to advice / refer to the law specifically in relation this more detailed situation?
Expert:  Ash replied 1 year ago.

Sadly not as this a question and answer site and not intended for specialist advice.

You would need a specialist solicitor which would cost far more than the sire charges here sadly.

This site is for general information I am afraid.

I can advice on general situation of what to Do such I have done.

Can I clairfy anything for you. Alex

Ash and other Law Specialists are ready to help you