Swiss Franc Mortgage Mis-Selling

Discussion in 'Cyprus Property' started by Planner27, Dec 24, 2011.

  1. Planner27

    Planner27 New Member

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    A large group of determined property owners intend taking ‘class action’ for mis-selling Swiss Franc mortgages. If you were advised to take out a Swiss Franc Mortgage and wish to join this group or require further information then please send an email to lc.te.hill at googlemail dot com
     
  2. souldancer

    souldancer New Member

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    Hi Could you please confirm your email address.Cheers Dave
     
  3. Planner27

    Planner27 New Member

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    Please email Lyn Hill at the following e-mail address for further information: lc.te.hill at googlemail dot com

    (sorry not posted enough yet for the system to allow me to post e-mail addresses)
     
  4. bendybunny

    bendybunny Member

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    Hi,
    Is the intention to take this out in Cyprus or the UK?
    BB
     
  5. Cornholio

    Cornholio New Member

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    Update............

    Buyers to sue over 'mis-sold' mortgages
    Published on August 17, 2012

    THOUSANDS of British luxury property buyers are taking legal action against Cyprus-based banks, claiming they were mis-sold the accompanying mortgages, the Daily Mail has reported.

    According to the paper, an estimated 6,000 people bought holiday homes here using Swiss franc mortgages, and are now faced with crippling debts. Some have even been threatened that their British homes may be repossessed.

    Most say they were convinced by financial advisers to gamble that the British pound would remain strong against the Swiss franc and keep payments low.

    By taking out a Swiss franc mortgage with a local Cypriot bank, the paper said, a £110,000 loan for a two-bedroom apartment would cost just £600 a month.

    But years later, mortgage payments have jumped to £900 a month.

    A legal loophole means Cypriot banks can issue orders to seize property that can be enforced by British courts.

    Many of the holiday home owners are starting legal action to prove that they were mis-sold the mortgages in a desperate bid to keep a roof over their heads.

    The alleged victims, many of whom are elderly and stumped up a 25 per cent deposit, say they were talked into taking out the loans by Cypriot developers, bank staff and British independent financial advisers who did not fully explain the risks involved.

    In many cases these borrowers believed that their payments were fixed and could never rise.

    Buyers to sue over 'mis-sold' mortgages - Cyprus Mail
     
  6. Cornholio

    Cornholio New Member

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  7. Kristine

    Kristine New Member

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    Thanks for the update Cornholio.:)
     
  8. Cornholio

    Cornholio New Member

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    Update............

    Alpha Bank seeking to repossess British homes in Cyprus
    Published on September 30, 2012

    OVER a thousand Britons who bought holiday homes in Cyprus face repossession as one of Greece’s major lenders, Alpha Bank, has launched legal procedures against them, The Times reported yesterday.

    The Times said that hundreds of Britons stopped paying their mortgage as a direct result of an ongoing debt crisis and the changes this brought upon their mortgage terms.

    The borrowers bought property in Cyprus in 2007 and 2008 on Swiss franc denominated mortgages, an advantageous agreement at the time because Swiss franc loans offered a much better interest rate, the Times said.

    Instead of an 8 per cent interest rate available in Cyprus pounds (prior to the euro’s introduction) or sterling, borrowers could get half of that.

    But since the credit crisis, the Swiss franc has been appreciating against currencies because of its solid reputation and Britons repaying mortgages in sterling now need to pay significantly more.

    In September 2007, 2.43 Swiss francs was equivalent to £1.00, but in September 2012 it took just 1.51 Swiss francs to get £1.00. A British owner who had paid £424 a month in 2007 now has to pay £658 a month.

    Alpha Bank Cyprus, a subsidiary of Greece's third biggest bank, has been serving writs demanding that borrowers, or a legal representative, appear in the District Court of Nicosia within ten days or judgement will be given in their absence, the Times said.

    If the bank cannot retrieve the amount owed by selling the mortgaged property, then those affected may lose whatever other property they have to their name, including their UK home.

    Alpha Bank argues that borrowers were asked to sign all the relevant legal documents, including declaration letters acknowledging that they fully understood the risks involved in borrowing in Swiss francs.

    The Times said that property owners were prepared to fight in court, with one company, Regulatory Legal, acting on behalf of 750 homeowners and another, Judicare, representing hundreds more.

    Regulatory Legal solicitor Gareth Fatchett said: “If [homeowners] do not fight this, they will face a judgement in Cyprus and the property will be sold but there will probably still be a debt. The bank can then pursue money through the courts in the UK, putting the debtors' assets, including their homes in Britain, at risk. This is a Waterloo moment for everyone because they are going to have to fight this."

    Judicare’s Neil Heaney told the newspaper: "There are irregularities and issues with many of the loan documents. Many were signed by lawyers who were given power of attorney but these were not certified properly. This could invalidate the loan agreement."

    Others may claim alleged foul play from the lender, with the Times saying they will claim that the bank colluded with developers, signing off payments before apartments were at the appropriate stage.

    Alpha Bank officials could not be reached for comment yesterday.

    Alpha Bank seeking to repossess British homes in Cyprus - Cyprus Mail
     
  9. Veronica

    Veronica Administrator

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    Yes and we know which developer is the biggest culprit in this. Not naming them but the initials are A P:frown:
     
  10. Jinetero

    Jinetero New Member

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    HOLD THE DATE - WEBINAR | WEDNESDAY 10th April 2013 - 7pm (UK time)

    HOLD THE DATE - WEBINAR | WEDNESDAY 10th April 2013 - 7pm (UK time)

    George Kounis of law firm Maxwell Alves who represents a large group of Cyprus mortgage victims (the largest group are Alpha Bank) is putting on a webinar this WEDNESDAY at 7pm to discuss strategies for winning our battle.

    All are welcome to join.

    George has met Alpha Bank, Bank of Cyprus and Laiki and has had success in opening negotiations with these initially intransigent institutions and even succeeded in them agreeing in principle to write off some debts. George’s strategy is to negotiate with the banks using the collective power of the army of us victims. In his words: “There must be up to 10,000 such victims who can bring the banks to their knees by simply stopping repayments so banks must take us seriously.”

    I will post login details as soon as I receive them.

    Please pass this on to anyone and everyone who may be interested.

    George is author of “Plan for all Reasons” report - can be found on Cyprus Property News website
     
  11. bendybunny

    bendybunny Member

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    This negotiation has been on the cards for years, of course the bank will negotiate. Any resulting owners keeping their properties reduce the toxic debt AB have. The Bank have promised many ways that this can all be settled they will write off interest, couple of years mortgage this is nothing new.

    The fact that the Bank acted totally illegally along with the certifying officer and the thoroughly independent lawyers, corrupt property developers etc etc. Don't try to suggest this is something new and we can all join.
    If you show you are interested in this the full argument is fully diluted, no wonder the Bank are interested.
     
  12. bendybunny

    bendybunny Member

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    The Banks are willing to negotiate with anyone as far as they are concerned it is damage limitation the more they negotiate the lower the amount they will end up paying out. This is the same as R&L strategy. Georges first strategy was not to negotiate so what's now changed? I also notice there is no end fee mentioned another pay me now and give me more as we go along. Sounds familiar to yet another group that gives no end in sight for paying fees.
     
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