The High Court in London has taken the unusual step of barring further litigation in a legal dispute over a company that claimed to help people with mortgage problems.
The case involves Mortgage Five Zero Ltd, a company that provided non-regulated legal services to the public. Specifically, the company claimed it could absolve mortgagers of their repayments by bringing claims against their lenders.
Mortgage Five Zero claimed this was possible because mortgages deeds were frequently in breach of legislation and, therefore, void. It’s a point that has been addressed and dismissed in judgments several times over the past decade.
The company was shut down on public interest grounds by a judge at the Insolvency and Companies Court in April and is currently seeking permission to appeal.
According to a ruling handed down yesterday, since April various individuals claiming to be connected with Mortgage Five Zero have filed applications seeking, among other things, time extensions and counterclaims. According to yesterday’s ruling, several of the applications were found to be without merit.
According to the judge in the case, Mr Justice Adam Johnson, the legal action shows an inability in “taking no for an answer” over “the company’s misguided argument” relating to mortgage deeds.
He approved an extended civil restraint order (ECRO) banning one named individual from making further applications relating to the case for the next three years.
Mortgage Five Zero Ltd v The Secretary of State for Business and Trade
Property Trust and Probate Court (Mr Justice Adam Johnson) 25 October 2023
