Mortgages

Question 1

Bank of Kuwait v Sahib

Answer 1

Depositing title deeds at bank didn’t charge house under equity.

Question 2

Plevin v Paragon Personal Finance

Answer 2

Mortgage was arranged, she was encouraged to take out PPI, didn’t disclose that 72% of premium was commission. Held that the credit relationship was unfair even though lending rules didn’t require the disclosure of the commission.

Question 3

Cityland & Property v Dabrah

Answer 3

Loan was repayable over fixed term with substantial capital premium, interest rate at 19%. Court found this to be oppressive, substituted rate of 7%.

Question 4

Evans v Cherrytree Finance

Answer 4

Mortgage was part domestic and part commercial, borrowers were held to be consumers who could be protected.

Question 5

Lordsvale Finance v Bank of Zambia

Answer 5

Penalty was valid under New York law.

Question 6

ParkingEye v Beavis

Answer 6

Approved Lordsvale Finance decision, penalties are valid.

Question 7

Newham LBC v Khatun

Answer 7

Unfair contract terms legislation was potentially applicable to land.

Question 8

DG of Fair Trading v First National Bank

Answer 8

Debtor was sued, judgement debt arose, statutory interest rate was applicable. Mortgage provided that the mortgage rate of interest would continue even after judgement, this was held to be valid.

Question 9

Office of Fair Trading v Abbey National

Answer 9

Overdraft charges were core terms and not reviewable.

Question 10

Aziz v Catalunyacaixi

Answer 10

A got mortgage from C bank, 18.75% interest charged on defaults. No unfair terms legislation under Spanish law. Two basic tests indicated: what was Spanish law, apart from the mortgage? Would a reasonable consumer sign up for the term?

Question 11

Barclays Bank v O’Brien

Answer 11

Man persuaded wife to sign mortgage by telling her it was limited and temporary, the misrepresentations invalidated the charge.

Question 12

CIBC Mortgage v Pitt

Answer 12

Man wished wife to sign mortgage, argued about it every night, actual undue influence was established.

Question 13

Four Maids v Dudley Marshall

Answer 13

Repossession does not always depend on default, although this can be excluded by terms of mortgage.

Question 14

RBS v Miller

Answer 14

There was a club including a caretakers flat, held that the whole mortgage was covered by the Administration of Justice Act because it included a dwelling house.

Question 15

Cheltenham & Gloucester BS v Norgan

Answer 15

Allowed the remainder of the mortgage term to clear arrears.

Question 16

Manchester CC v Pinnock

Answer 16

Usually if it is proportionate to repossess under the AJA, it is proportionate under the HRA.

Question 17

Rapaigealach v Barclays Bank

Answer 17

Court of Appeal rejected any other than the literal interpretation of the AJA.

Question 18

Horsham v Clark

Answer 18

Aspect of due process it to imply that the lender had to sue for the enforcement of the mortgage.

Question 19

Payne v Cardiff RDC

Answer 19

Suggests no need for default clause.

Question 20

Cuckmere Brick v Mutual Finance

Answer 20

Lender must take reasonable steps to make sure a proper price is obtained for property, should not be sold below market price.

Question 21

Williams v Wellingborough Council

Answer 21

Cannot sell to self.

Question 22

China South Seas Bank v George Tan

Answer 22

Sale to connected purchaser is not void, onus on purchaser to prove a reasonable price was paid.

Question 23

Paulk v Mortgage Services Funding

Answer 23

As lender wanted to defer sale and it wasn’t in the borrower’s interests, court took over sale and controlled it. Only time this has ever happened.