Charging Order? The myth

Spaceboy7

Thank you LLR and eggbox for you sound advice , I will let you know how this plays out.

Thrugelmir

Rockit wrote: »

Just to keep peeps updated, my house sale fell through today. The buyers solicitor was unwilling to accept the property with the restrictions on them. He knew the law but was unwilling to put it to the test with his client who was purchasing our property just in case the deeds came back from the land registry with the restrictions still on them.

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If there's a mortgage involved then the solicitor also works for the lender. For the buyer they are purely contracted to provide conveyancing services. Nothing to do with unwilling I suspect. More a question of under instruction. The CML handbook may provide you with the answers you are seeking.

Mrtrotter

Is it possible to re-mortgage with a charging order?

eggbox

Yes it is, but it is at the discretion of the lender as to whether or not they approve the extra borrowing.

Mrtrotter

Thanks. Current mortgage debt 79k Halifax and 17k GE Finance 96k paying 800 combined. Personnel debt 15k so was looking to remortgage at 112k reducing our monthly outgoing a by 800

eggbox

It would be useful to the board (as others will be considering the same) if you could report back what your lender does/doesn't allow you to do?

Mrtrotter

Our credit record is now good as ccj have past 6 years so thought we would try and reduce our mortgage payments by re-mortgaging.

eggbox

Pre 2008 you would have had no trouble. But with lending rules having been tightened up and more checks now being made, its more difficult to gain lending now if there is anything not straight forward.

One area that may be a problem is if the old loan has to be terminated to allow a new loan with increased lending. If that is the case you won't, unfortunately, get the loan as the new loan (as a "new" loan) would lose priority, by date, on the CO (or Restriction) registered on the deeds. All mortgage lenders require their lending to be the first charge on the deeds, if that is not the case then the loan won't proceed.

If, however, the remortgage can be a simple increase of the original loan then the mortgage remains in pole position and shouldn't be a problem. So you need to check how your lender goes about remortaging?

Mrtrotter

I hear you, so I would be better off speaking to the Halifax instead of switching.

eggbox

Unfortunately, that would (probably) be your only option if Halifax increased your loan with a possible rate change to help?