Deed of Postponement. Any Advice.

Not-a-pot-to-pee-in

Hi everyone, its my first post so go easy on me.

I have been on a two year fixed rate discount tracker with Abbey, the two years have now elapsed and this, coupled with the rise in interest rates has increased our mortgage repayments by well over £100 per month, so my wife and I have been shopping around for another mortgage. We thought we had found one, but because we also have a secured loan, the new lender had to ask the secured loan company for a 'Deed of Postponment'. They declined to give this and the mortgage has fell through.
We are now really worried, does this mean that we are 'stuck' with Abbey until the secured loan company thinks fit because the hefty increase in monthly repayments is starting to put pressure on our monthly budget.

LisaT186

The first thing to do would be to ask the secured loan company why they refused the deed of postponement, without knowing why it would be difficult to say.

There is the theory that if you have enough equity in your property you could remortgage to raise enough to pay off the secured loan and see if your monthly payment for the new mortgage comes around about the two payments currently (bearing in mind that if it goes over a longer term you could end up paying more due to interest for longer and there may be a redemption penalty for paying the loan early).

If you can't get the deed of postponement or can't remortgage to clear the loan, you may be 'stuck' with the Abbey for the moment, so it is worth calling them to see what deals they can offer you now, they always have a range available for existing clients, although they may not be the most competitive on the market.

LisaT186

The first thing to do would be to ask the secured loan company why they refused the deed of postponement, without knowing why it would be difficult to say.

There is the theory that if you have enough equity in your property you could remortgage to raise enough to pay off the secured loan and see if your monthly payment for the new mortgage comes around about the two payments currently (bearing in mind that if it goes over a longer term you could end up paying more due to interest for longer and there may be a redemption penalty for paying the loan early).

If you can't get the deed of postponement or can't remortgage to clear the loan, you may be 'stuck' with the Abbey for the moment, so it is worth calling them to see what deals they can offer you now, they always have a range available for existing clients, although they may not be the most competitive on the market.