remortgage

apolotares

i have a fixed rate mortgage for 10 years at 5.19 pct taken out in 2006,
with the northern rock it has 5 years left to run. However i can now get 5 years fixed at 3.95. now i was told by the mortgage company i could overpay, then draw as long as i kept the mortgage open. However the Northern Rock has informed me i cannot have 2 residential mortgages. I should point out my house is only mortgaged to one third of its purchase price in 2006. Is it correct that they can prevent me for leveraging my remaining equity and useing it to reduce my northern rock mortgage by 99pct. This Northern Rock mortgage is interest only as I have other investments that could cover it that i currently have that i do not wish to liquidate. i was careful to ensure their was no limit on my overpayments.

Thrugelmir

Yes. They set the terms of the loan.

apolotares

but i see no referance to this in my mortgage agreement

apolotares

so where in the contract should i be looking for this prohibition on 2nd loans ?

Thrugelmir

apolotares wrote: »

so where in the contract should i be looking for this prohibition on 2nd loans ?

As the customer you have no right to dictate terms. A second loan would be outside the remit of the original mortgage application.

apolotares

i can see that i cannot conceal the existence of a 1st loan, but i dont see it as dictating terms, i have agreed terms. I have not agreed to a prohibition, so i dont understand why something that is not in the terms i agreed can now be instigated. one can not unilaterally insert a term in a contract once a contract has been agreed. Under the conditions you are suggesting surely they could suddenly announce i have to paint my house pink. im sorry but i dont understand how they can enforce something that does not exist in the contract. So i dot understand - if its not in the terms then where does the right to prohibit come from.

Thrugelmir

apolotares wrote: »

Under the conditions you are suggesting surely they could suddenly announce i have to paint my house pink. im sorry but i dont understand how they can enforce

Your are the one asking to withdrawl equity from the property. The request will be considered in light of current lending practice. They can decline for whatever reason they wish.

In such circumstances the only real option is to walk away and transfer your business.

apolotares

no my point is i can overpay a lumpsum (no restriction) interest is recalculated from the next day. If i redeem the mortgage, then i have to pay a penalty of 15,000. But what i was planning to do was to make a repayment - of 99 pct of the loan, by borrowing from another lender. Now if i had 99 pct in cash i could repay no problem. but the only lock in i have is that i cannot borrow from another lender according to the building society. sorry to sound annoyed by i have 300k mortgage on a property i worked hard to improve and is now valued at 880k, and i cannot raise extra cash for any purpose it seems, unless it seems i ask the original lender. I never agreed to this so i see it as unfair. If i was to go ahead and do it anyway they have the right to terminate the contract, which of course would not worry me. But i would not be in breach of the contract i have in front of me that i can see, so i fail to see how they could penalise me. Or alternatively they could match the deal i have been offered which i would be happy with, this is my second mortgage with this lender. the first i payed off after the fixed period on the precious property i owned after 7 years. no problems.

apolotares

what do you think if i said to my current lender, can i borrow another 299k say make a payment, on the first loan, and you offer me a new 5 year deal. I appreciate they may not like it. But do you think i have any case that they may go withit on the basis as i say there is nothing in the contract that says i cvant do it with another lender and they would have to contest it to prevent me.

apolotares

or i could just see the advisor and say i intend to make a lumpsum payment of 299,999. In theory i could do this by remortgaging property i own that has no current mortgage liability. but id rather not. Or you could give me a new deal for 5 years. might that be a more mitigating help. what do you think

Thrugelmir

So is the NR seeking repayment of the entire debt?

Is the property on which NR have a mortgage charge let out?