Mortgage Fraud 101: Summary of The TGBMS Grounds

“Tell everybody you know – TGBMS Day is coming for the Banksters this summer.”

Mortgage Fraud 101: Summary of The TGBMS Grounds

At the end of The Great British Mortgage Swindle it is declared that, for the purposes of canceling 11.2 million illegal mortgages and claiming indemnity from the Chief Land Registrar, Representative Actions [known as Class Action suits elsewhere] will be filed in every District Registry in Britain.

These actions will be seeking High Court declarations that every UK mortgage which is subject to an application to cancel it in the local Charges Register, must be canceled in the event it is shown to be illegal and void on one or more of the following grounds.

The TGBMS Grounds

The Section 1 Point

1. The mortgage deed was not signed by the mortgagor in the presence of an independent witness, in breach of section 1(3) of the Law of Property (Miscellaneous Provisions Act 1989.

This point of law was established in the summary judgment handed down by HHJ Behrens in my family’s High Court case, Bank of Scotland plc v Waugh & Others [2014] – a mortgage deed will be illegal and void under section 52(1) of the Law of Property Act 1925, if it is not signed in the presence of an independent witness.

As the 1989 Act does not apply in Scotland or Northern Ireland, void mortgagors in those countries can rely on the following:

a. In Scotland, the Requirements of Writing (Scotland) Act 1995 also has the same effect as section 1(3) of the 1989 Act.

b. In Northern Ireland, section 3 of The Law Reform (Miscellaneous Provisions) (Northern Ireland) Order 2005 has the same effect as section 1(3) of the 1989 Act.

The Section 2 Point

2. There is no mortgage contract containing the signatures of both the mortgagor and the mortgagee, along with the terms and conditions, in a single document.

This offends section 2 of the LPMPA 1989, in accordance with the Court of Appeal decision in United Bank of Kuwait v Sahib & Others [1996] – a mortgage or charge will not arise without a section 2 compliant contract.

Where section 2 of the 1989 Act does not apply:

a. In Scotland, the Requirements of Writing (Scotland) Act 1995 also requires that written contracts must be properly executed by mortgage companies to have legal effect.

b. In both Scotland and Northern Ireland, sections 43 and 44 of the Companies Act 2006 legally oblige mortgage companies to sign mortgage contracts.

In Northern Ireland, the Statute of Frauds Act 1677 prescribes that a creditor [including a mortgage company] cannot issue legal proceedings against a debtor [including a mortgagor], unless the debt can be verified by a written agreement, which must be signed by the debtor.

The Southern Pacific Mortgages Point

3. The mortgage deed was executed by the mortgagor before they owned the property concerned, in breach of the rule laid down by the Supreme Court decision in Scott v Southern Pacific Mortgages [2014].

In this landmark case, the Supreme Court affirmed the High Court decision of HHJ Behrens, who ruled that nobody has the right to grant any kind of legal or equitable interest in or over a property before they become the owner of it.

Bankster-Busters Conference and TGBMS Day

On the 21st of July 2019, Michael O’Deira and I will be hosting a Bankster-Busters Conference on the outskirts of Nottingham, where we will be aiming to appoint and train organizers, administrators and advocates to run each of the seventeen Representative Actions, right across the UK.

The leaders of each group will then be given all the tools required to run the actions, including template forms, particulars and witness statements, following which the claims will be prepared for mass filing, for and on behalf of Britain’s 11.2 million illegal mortgagors.

The date of the filings, which is set to be announced shortly after the conference, will be dubbed TGBMS Day.

Join The Class Actions

In the event you are a UK void mortgagor and you with to become a party to the claim in your part of the country, you need to do the following three things:

See The Great British Mortgage Swindle, which will give you a comprehensive understanding of the TGBMS Grounds.
Sign up to the TGBMS Mailing List here.
Download the TGBMS: Next Steps PDF when you receive the mailing list welcome email.

You will then receive an email asking you to email the administrator of the group in your area, confirming your participation, once all the group leaders have been appointed.

Ongoing Mortgage Possession Proceedings

If you are already involved in ongoing mortgage possession proceedings, the TGBMS Grounds can be used as a defence or counter-claim. They can also be used in an appeal or judicial review of a possession order.

However, if you have already had a possession order issued against you and there are no routes of appeal left, making a fresh claim to strike out the fraudulent mortgage possession claim on the TGBMS Grounds is the best available option.