Trapped by huge redemption penalties?

Trapped by huge redemption penalties?

13:29 PM, 18th November 2013, About 9 years ago 5

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Have you discovered your fixed-rate loan has an enormous breakage cost? You may have a Hidden Swap.

‘Hidden Swaps’ are loans sold by banks to customers mainly between 2005 and 2008 and include commercial loans for residential let property. They were disguised as ordinary fixed-rate loans but they were not. Many thousands of cases are coming to light where landlords want to, or have to, break their loans for some reason. Instead of breakage fees of a few percent which might be expected they end up getting charged huge penalty costs as much as 40% of the value of the loan. This is preventing re-financing, selling down, developing, re-investing, or simply downsizing, and in some cases causing financial ruin. Trapped by huge redemption penalties?

Many landlords are in a corner. Sometimes the bank aggressively down-values the portfolio, the customer discovers they are stuck in the loan, and have to pay extra fees or interest because they are ‘in breach of contract’ (often manufactured deliberately by the bank). Sometimes landlords want to re-finance elsewhere or amend their lending but discover their hands are tied because of completely prohibitive breakage costs.

The reason for all of this is that thousands of people were sold a Swap but they were never told about it. Many people feel this is even worse than the mis-selling of Interest Rate Swap Agreements (IRSAs). At least they knew they had a Swap! To make matters worse, IRSAs are covered by the FCA review and Redress Scheme, but Hidden Swaps are not.

Bully Banks are committed to changing this, and are holding their first Hidden Swaps Conference on 30th November 2013. For further information about joining Bully-Banks, Hidden Swaps and the Conference go

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Richard Greenland Richard

9:13 AM, 20th November 2013, About 9 years ago

Good post. I have come across two people in this position and both lost the lot. I very much hope something can be done about this legalised scam.

Fiona Sherriff

12:30 PM, 20th November 2013, About 9 years ago

Reply to the comment left by "Richard Greenland Richard" at "20/11/2013 - 09:13":

Richard - please can you pass on the information about the conference to those two people or get them to contact me? We are working with other people who have been made insolvent or bankrupt by these products and are aiming for redress as far as is possible for everyone.

Richard Greenland Richard

21:10 PM, 20th November 2013, About 9 years ago

Hi Fiona I would gladly but I think it needs to be done privately and I can't find how to post a private message?

Fiona Sherriff

21:14 PM, 20th November 2013, About 9 years ago

Hmm, nor can I Richard. Not sure if the forum will allow but my email is Otherwise I'll ask the forum people in the morning. Thanks for following up.

Richard Greenland Richard

22:55 PM, 20th November 2013, About 9 years ago

OK I'm on it... As a general rule Fiona I wouldn't post your email on a public property forum, it is likely to be harvested by list-builders and you will probably get spammed to death...

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