Mortgage Legal Question

Tuono

How doo folks. A quick question. My partner went to see Mr Halifax for a mortgage review last week. She's got another loan (quite a large one) secured on the property. When Mr Halifax checked the details on the property, it appears that the Halifax have never been informed that there was another loan secured on it. They didn't seem that bothered, but the mortgage guy said it was a bit naughty/stupid of them.

Who's responsible for telling the Halifax about this loan? My partner or the other loan company? Has anyone broken the law? Should we give a s***?

Thrugelmir

To place a second charge on the property the first charge holder has to give permission. So there's nothing new as such.

antrobus

Thrugelmir wrote: »

To place a second charge on the property the first charge holder has to give permission. So there's nothing new as such.

That question was covered in this thread here - https://forums.moneysavingexpert.com/discussion/comment/48890833#Comment_48890833

More specifically:-

Richard_Webster wrote: »

A lot of confusion here. Under the general law the mere fact that a first mortgagee has a charge registered against a property does not mean that it can stop the regsitration of a second charge.

Having said that, most major lenders now have wording in their mortgage deeds that contains an application for a restriction preventing any dispositions (inlcuding second charges) without their consent.

antrobus

Tuono wrote: »

....
Who's responsible for telling the Halifax about this loan? My partner or the other loan company? Has anyone broken the law? Should we give a s***?

It was the 'other loan company' that is responsible for getting permission from the Halifax. No one has broken the law, although it might mean that the other company would have a problem in enforcing the second charge (should it ever come to that). But you don't have a problem, so you don't need to ' give a s***'.

Tuono

Cheers, Folks. As long as we don't end up in chokey because of it

Thrugelmir

Tuono wrote: »

Cheers, Folks. As long as we don't end up in chokey because of it

No reason for a second charge to impact the Halifax's position as such. Though the second charge will be detrimental to your partners credit score.

Tuono

Thanks for all the advice. Our main objective is to get rid of this loan company because they're crippling us. :cool: