deed of postponement

nathome

Hi, my home which is mortgaged has a second charge in the form of a secured loan. I am currently trying to remortgage and the new lender has agreed to the new mortgage of 190,000£. My current mortgage is 170,000£ and I have asked for extra 20,000£ which have been agreed. Currently, the house worth 275,000£ and this figure comes from the valuation I have had with the new lender, so it is an up-to-date property valuation. However, I have a second charge to the property for 34,000£. This brings the total to 224,000£ which is ~82% LTV. I am in the process where the 2nd lender needs to agree to a deed of postponement. I was reading online forums that in some cases the 2ns lender has refused the DOP. How likely it is in my case and if they do refuse what are my options?

_Andy_

No point speculating really, it will be assessed as in individual case and depends on lender etc.

nathome

Thanks. My second lender is paragon. I was doing some googling to see if they have previously refused a DOP but I could not find anything. There were other complaints but not relevant to DOP. If they refuse according to what grounds can do that? Is it legal? Can they refuse even if the LTV is less than 100%?

Radiantsoul

They might disagree, if they do can you not increase the amount you are remortgaging for and clear the secured loan as well. If you can''t do that then it seems that Paragon would be justified in not agreeing to a deed of postponement as your mortgage company presumably find the equity situation to be too risky.

nathome

I have asked my financial advisor to look at this and increase the loan so we can clear off the second loan. I cannot believe that the first lender has agreed to the money and the 2nd lender is stopping the whole process. I feel I am back to zero after a month and a half. Anyway, I hope I can find a good deal that I can clear off the 2nd lender and I have now learnt my lesson about secured loans over your property. It's not worth it.

nathome

I forgot to mention that they have declined the DOP on the grounds that their policy is 60% LTV, which I find totally unreasonable. However, as I said earlier I'll try to increase the mortgage loan.