retention - what is it and how does it work

evosy1978

Basically folks as the question says.

My mortgage lender has said they will be holding some retention on my mortgage, due to damp and other problems.

I just wondered how long they will hold for and what difference it will make to your payments,??

thanks

brannyrhino_2

A retention is an amount of the loan they do not release to you to ensure that you undertake the works prescribed.

You will not be charged interest on the retention until it is released.

It will not be released until you prove the works have been done by the agreed company.

At completion you are going to have to find the amount of the retention from your own resources to enable completion to take place.

You can try to negotiate a price reduction with the vendor iro the works required.

They will hold it foreva if you do not do the works.

Hope this makes sense!