Owner occupied mortgage & BBL

[Maz]

]I hold an owner-operator mortgage from Barclays, along with a Bounce Back Loan (BBL). Although I have defaulted on the BBL payments, I have maintained commendable repayments on the mortgage. Despite this, my account has been transferred to the recovery department.

The recovery department has pressured me to either sell or remortgage my property or to pay off both the BBL and the mortgage simultaneously, which is not feasible for me. They are demanding that both loans be settled at the same time.

I am contemplating selling the property to pay off the mortgage; however, they have combined the two loans to lift the charge against the property.

I am seeking clarification on the legality of this action. Is it permissible for them to combine two distinct loans in this manner? Additionally, I would like to know if there are any experienced advocates or legal counsel available for proper advice?
Regards

 

[Chris Ashdown]

As usual what does your contract's with the bank state, look at the small print given when you signed for the loans

 

[Gyumri]

Barclays would have obtained a debenture over all the assets of your company as part of taking their first legal charge over your company's property and that is why they can normally ask you under that debenture to pay off all that the company owes.

However, I thought that they could not take security for a bbl so they might be playing clever by saying that you have triggered an insolvency clause in your mortgage and on that basis they want everything that the debenture covers including the bbl.

It's a bit naughty because they are robbing Peter (your property) to pay Paul (the bbl).

Have a look at this article in the light of what your security documents say:

https://www.cavanaghkelly.com/assets/downloads/Bounce_Back_Loans_FAQs.pdf

 

[Mark T Jones]

First question (excuse me if I've missed it)

Is this a limited company,or are you a sole trader

 

[Lisa Thomas]

This question has also been posted under the insolvency section. Maybe Admins could merge?