About 6 years ago I personally borrowed 2m with my wife to buy a commercial property on an interest roll over at 1.2 over euriobar we signed a loan agreement for a 5 year term. 4 years into the loan I called a meeting with the bank to change the terms I was nothappy with the loan getting larger and larger. I asked them could I pay 200k if the capital and start paying interest only for the rest of the loan term. They advised me they would have to issue a new agreement in place so I agreed. They sent a new letter of offer for a further 5 years increasing the rate to 1.7 over euriobar I hesitantly agreed so a new term was put in place. We have never missed a payment but now it's getting really tough as my business is struggling And I dont know if I can make the next two years patmens while maintaining my health and business as I Am Working purely to pay the interest to the bank now.
When the money was given I made it quite clear I would not under any circumstance sign a personal guarantee. They replied there was no need to they were happy with the property as security
On the letter of offer the heading stated.
SECURITY REQUIRED
LAnds and buildings at .........
And below that it stated in another heading:
ADDITIONAL SECURITY REQUIRED
no additional security required
This lead me to believe they were holding the property the money was borrowed for as security. And I made a point of asking the manager at the time is this all you require for security no house or business but just what it states on the letter, he assured me that was tithe bank were happy with the lot they had.
However now me may have an issue paying and when speaking to various financial and legal people I have been informed that the bank automatically have a personal guarantee when you borrow the money in your own name. I'm disgusted that they would have led me to believe this now I'm up the Walls with worry as there is no way possible in 2013 I will be able to pay this debt.
[*]Does anyone have any views or ideas on this would really appreciate and help at all thanks
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When the money was given I made it quite clear I would not under any circumstance sign a personal guarantee. They replied there was no need to they were happy with the property as security
On the letter of offer the heading stated.
SECURITY REQUIRED
LAnds and buildings at .........
And below that it stated in another heading:
ADDITIONAL SECURITY REQUIRED
no additional security required
This lead me to believe they were holding the property the money was borrowed for as security. And I made a point of asking the manager at the time is this all you require for security no house or business but just what it states on the letter, he assured me that was tithe bank were happy with the lot they had.
However now me may have an issue paying and when speaking to various financial and legal people I have been informed that the bank automatically have a personal guarantee when you borrow the money in your own name. I'm disgusted that they would have led me to believe this now I'm up the Walls with worry as there is no way possible in 2013 I will be able to pay this debt.
[*]Does anyone have any views or ideas on this would really appreciate and help at all thanks
[/LIST]
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