Removing title charge on potentially fraudulent mortgage

[MoorthanmeetstheEye]

Hello

 

I was wondering if you could provide me with a bit of advice with a mortgage matter that I am working on.

 

I recently became concerned about the terms of my mortgage, and the way that it has bene setup.

 

I want to get some clarity on a few things regarding my mortgage,

so I looked through all the documenst that I have relating to the mortgage,

but couldn't find a copy of the mortgage contract.

 

I decided to use the data protection act to do a few requests from my mortgage lending bank.

I asked for the original signed contract which says what I have to pay back,

and I also asked for the accounting for the mortgage from the beginnning of the mortgage up until the present (around a years worth).

 

they replied back within a reasonable amount of time, and sent me quite a few bits of information

(I sent the letter to the Director of Mortgages, and she replied back herself).

 

Within the information they sent back was a letter saying how much they had lent me,

and the terms of repayment etc, and it was signed by someone working with the mortgage bank,

 

however there was no agreement signed by myself contained within all of the information they sent back.

In fact, there was nothing that had been signed by myself contained within all of the information they sent.

 

They also sent me the accounting information that I requested.

 

The accounting was in a format that was legible, but it was far below the standard that I would expect from a reputable bank,

but that however isn't the main point.

 

The accounting showed that at the inception of the my mortgage account there was a deficit to the amount that the bank claimed to have lent me.

 

For the sake of explanation I'll put a round figure on it and say that the balance of the account at the inception was -£100k pounds.

 

Now, this seemed odd to me as what I would have expected to see was either the balance being zero at the start of the account

(as I presume all account balances begin as)

then the next entry would show £100,000 being credited to the account (from the bank's main funds),

or at the very least the account would start with £100,000 in it,

which would then have gone out of the account in the next entry.

 

Having received the information I sent two letters back to the bank.

 

the first asked for the signed contract.

I reminded them that this was requested in the original data protection act request,

and they still had up to until a certain date to send me the information requested, or inform me that they didn't have it.

 

Up until now I still haven't heard anything back from them regarding this letter (they currently have eight days left to reply to this one).

 

The second letter I sent was just a query, not under the data protection act,

querying the accounting information that they sent me, and putting over my concerns that I outlined above.

 

They replied back to this letter (again from the Director of Mortgages), and in the letter it says that -£100,000

is record of the 'mortgage advance', and it re-iterates/confirms that the account opened with a balance of zero (or 'nil' to use the exact terminology of the letter).

 

This has led me to ask the question...if the account started with no money in it (zero balance) how could they lend me any 'money' from it?

 

If I have a box where I usually keep some money, and that box is empty then I cannot lend my friend £100 from it.

 

(I understand accounts can have overdrafts, but that is essentially a loan from the bank).

 

This all seems very fishy to me, and after thinking long

and hard about the situation I do not think it is right for me to be paying hundreds of pounds every month to a company

who cannot even provide me signed terms of the mortgage agreement,

and cannot even prove that they have lent me any money in the first place.

 

I think the best thing for me to do would be to get the mortgage voided.

 

I know that there are two issues with this

 

- number one,

the mortgaging bank wanting me to continue paying them

(I am happy to if they can provide the full information that I have requested, and I will write them a letter outlining this,

but I will also tell them that they cannot expect payments, and I will not pay,

if they can't produce such simple information that I am lawfully entitled to seeing).

 

Number two,

even if I stop paying they have a Charge on the title to my property,

put in in-case of default in payment.

 

If it turns out that they cannot provide me with the full information,

What do you think would be the best way of removing the charge on my property title?

[wfspayback]

What fraud do you consider took place ?

 

The account would start with a £0.00 balance then funds would be withdrawn from that account and be released to your solicitor to pay for your house.

 

This creates a debt, which effectively makes the account overdrawn. As you repay your mortgage, providing you have a repayment or a part&part mortgage, the debt / the amount the account is overdrawn by will reduce.

 

In many ways from an bank account perspective it is very similar to an overdraft arrangement, with the exception that by contract you agreed to make regular monthly payments.

[wfspayback]

The only funds that will ever be credited to that account will be your monthly payments. The original advance and monthly and/or annual interest will all be debits to that account.

[Lea_HTH]

You are extremely unlikely to 'void' this mortgage.

 

There are two simple questions here: did you receive the money? Have you made payments in respect of that loan? If the answer to both is 'yes', then you've got a problem in law, and that is that even IF the contract was void (it's almost certainly not), then the law would apply equity.

 

I don't quite see why people think that it is possible to negate a loan purely on the basis that they think a piece of information which they believe to be vital is missing - it's not vital and it ultimately doesn't matter if the two questions above can be answered 'yes'. The loan exists, whether by deed or not (and since there is a charge on your property, it was clearly by deed).

 

That is clearly not what you want to read, but that's how the law will interpret it.

[MoorthanmeetstheEye]

Thank you, the two people above for responding to my thread. However, I am not here to try and persuade anyone of anything. If anyone reads my statement and doesn't find the activities in the least bit out of order then that is fine. All I know is if I were in the business of lending people money for whatever reason, and one of my loanees asked for the information that I asked for then I would be able to provide it to them without any hassle.

 

My original question was.... 'If it turns out that they cannot provide me with the full information,

What do you think would be the best way of removing the charge on my property title?'.....if anyone is able to help answer this question then please reply.

 

Thank you

[Lea_HTH]

The best way to remove the charge on your property is to pay the loan that it secures.

 

Period.

[honeybee13]

The best way to remove the charge on your property is to pay the loan that it secures.

 

Period.

 

Hello there.

 

As things stand, I see no reason to disagree with Lea and wfs, I'm sorry. I imagine at the time you borrowed the money, you were pleased to have it available so you could buy somewhere to live? If you borrow money to buy a property, then normally the lender has a charge on it.

 

I'm not sure what you want to achieve from this.

 

My best, HB