NORTH-EAST investors who bought dream Mediterranean holiday homes are facing financial ruin after a foreign bank began legal proceedings against them.

Hundreds of property buyers who have been unable to keep up with rocketing mortgage payments are being issued with legal writs by Cyprus-based Alpha Bank.

Many investors bought off-plan properties on the island from Stokesley-based Roseberry Overseas Property (ROPUK) and its director Andrew Laird.

Scores of properties are still not finished years after deposits were paid.

Buyers have accused Mr Laird of failing to explain the risks, supplying inaccurate information and refusing to help when problems emerged.

Many investors are taking their own legal action against the bank, developer Alpha Panareti and Mr Laird.

Last night, North-East MEP Fiona Hall said: "People could lose their UK homes to pay the mortgage on a holiday property that was never built. Life savings will be lost. “

In 2006, former Corus worker Dave Biggs, of Hemlington, near Middlesbrough, used his redundancy money to put drown a deposit on a two-bed property.

Three years later, he realised there were problems when he found his property was only partially built.

He now owes around £400,000 on a property he bought for £200,000.

 "Andrew Laird sold himself as a one-stop shop but there was no after sales service at all.”

Angry buyers have complained to North Yorkshire and Cleveland police about ROPUK.

It is understood North Yorkshire Police passed its findings to Cleveland, which said it was a civil matter.

A complaint has now been submitted to both forces about their decision not to investigate.

Neil Heaney, from legal firm Judicare, which is representing hundreds of people who bought property in Cyprus, said anyone issued with a writ should not ignore it.

However, he said: “The buyers certainly weren’t given all the facts.

“The terms, conditions and reasons for lending in Swiss francs were never made clear to any of the clients.”