2nd charge on my mortgage

tinasilver

Hi just need a bit of help please, i already have a £6000 charge against my mortgage for my divorce as my ex does not have any assets, i am going to apply for a home improvement loan with the local council and this will be charged against my mortgage and it will only be paid back when i sell or die! My question is can you have 2 charges against the mortgage or not? Any help would be appreciated,thanks

opinions4u

My question is can you have 2 charges against the mortgage or not?

There's no limit to the number of charges there can be against a property.

In this case it's up to the mortgage lender and your ex though.

1) The lender can choose not to advance further funds if there is another charge on the property.

2) The lender can choose to lend funds in these circumstances and have those funds secured on the property as a third charge behind your ex (in other words if the property is repossessed they get the money for the original mortgage debt, your ex would get the £6k and then, if there's any equity left over, the lender gets their money back for the home imrovement loan.

3) The lender may choose to lend the funds as long as your ex provides them with a letter of postponement allowing them to get their hands on their money for both the original mortgage and the home improvement loan ahead of your ex.

I think (1) is the most likely outcome. If it's (3) I'm not sure if I was your ex I'd agree to it. Option (2) is unlikely.

tinasilver

Hi thanks for the quick reply i dont think i explained it correctly the £6000 was what my ex was supposed to pay but they cant find him so i was the only one with a asset so i got the charge on my mortgage for the divorce, the house is worth quite a fair amount so there is a lot of profit in it if it was sold, the home improvement loan is going to be done with the council a different lender to my mortgage lender, would this make a difference? Also when i applied for the h.i.l the divorce charge was not on my mortgage then. Thanks