My brother-in-law bought a site two years ago with a BOI mortgage. He got approval for the site, plus the extra money needed to build a new home for his family.
At the time BOI suggested they'd set up a single mortgage for the full amount, he would draw down the amount needed to buy the site initially, then he could draw down the rest as building progressed.
He went ahead on strength of this and bought the site.
It took almost a year to get planning permission.
When he went back to BOI last year to arrange drawdown of the build costs they told him they wouldn't give him any more of the money.
He hadn't lost his job. He hadn't taken a paycut. Basically nothing at his end had changed.
He was left with a mortgage on a site that he couldn't develop.
At the time I told him to get a lawyer on it.
Instead he went ahead and sold his current family home to raise money to build. He was able to do that, but it took a year, and he had to take a pretty poor offer on his nice house. Now the whole family are in rented accomodation, and will be there for a year at least.
I think BOI has acted illegally in what they did, but my bro-in-law refuses to believe it. He's afraid they'll up his interest rate if he rocks the boat.
Any thoughts on this?
What would you do in his situation?
I'm telling him to sue them!
At the time BOI suggested they'd set up a single mortgage for the full amount, he would draw down the amount needed to buy the site initially, then he could draw down the rest as building progressed.
He went ahead on strength of this and bought the site.
It took almost a year to get planning permission.
When he went back to BOI last year to arrange drawdown of the build costs they told him they wouldn't give him any more of the money.
He hadn't lost his job. He hadn't taken a paycut. Basically nothing at his end had changed.
He was left with a mortgage on a site that he couldn't develop.
At the time I told him to get a lawyer on it.
Instead he went ahead and sold his current family home to raise money to build. He was able to do that, but it took a year, and he had to take a pretty poor offer on his nice house. Now the whole family are in rented accomodation, and will be there for a year at least.
I think BOI has acted illegally in what they did, but my bro-in-law refuses to believe it. He's afraid they'll up his interest rate if he rocks the boat.
Any thoughts on this?
What would you do in his situation?
I'm telling him to sue them!