deed of postponment

praiser

Is there anyting i can do ,my current mortgage company will not sign a deed of postponmet as we have a loan with them also ,we are taking a new mortgage with first national and saving ouselves 350 a month but cant do this now as they wont sign this paper so that they would be second inline if anyting happens to the house.

mhay_3

is there anyway you could raise finance on the new deal to pay the loan off?

praiser

there is not enough equity on the house for that we can only borrow 102 thousand and we owe 96 thousand to the mortgage

praiser

mhay wrote:

is there anyway you could raise finance on the new deal to pa




There is not enough equity on the house for that we can only borrow 102 thousand and we owe 96 thousand to the mortgagey the loan off?[/QUOT

so what can we do now

danjberry

is the current loan you have with them a second charge loan? if so i cant see why they wont sign it as they are already second in line

praiser

well they said they wont can we take it any futher or do we just have to accept that

Slayerx

Did they not give a reason as to why they won't sign it?

mhay_3

what is the property value?

toonfish

danjberry wrote:

is the current loan you have with them a second charge loan? if so i cant see why they wont sign it as they are already second in line

technically they are, but they are also first in line at the moment so they have the bases covered

silvercar

From their point of view, as the first charge holder (mortgage) this would guarantee that the mortgage was first repaid and also being the second charge holder would give some coverage for that.

If they allowed you to move your mortgage elsewhere there is the risk that, if you got into arrears and were then repossessed, the mortgage+ arrears+ repossession costs would leave them no money to claim for the second charge. The second charge would then almost be an unsecured loan that you are paying secured loan rates for.

The only way round would be to pay off that second charge somehow and then move the mortgage; then you could repay the money you borrowed to pay off the second charge by taking a secured loan again.