Is it possible to remortgage?

Calm29

I have interest only mortgage jointly with ex partner.it is at high rate of interest with sub prime lender ex partner was self employed with poor credit.I would like to remortgage to extend the term to ensure a home for my children and if possible obtain a better rate .i need about 65% LVR .however there are three subsequent charges on ex partners half of equity and don't understand how a remortgage could work with these .no chance of being able to pay them off they exceed 150000.any advice greatly appreciated

holly_hobby

The exisiting charges need to be redeemed on any remortgage (unless they agree to defer their charge), as under the charges succession order, as soon as your current lender removes their 1st charge upon repayment , the ones behind it all move up a place, under date priority order.

And as your new lender will demand 1st charge, you're snookered - unless deferment is agreed by the other chargees.

Hope this helps

Holly

Calm29

Thanks Holly
Would it make any difference if the holders of the subsequent charges couldn't be traced think one is overseas and another may no longer be in business?might it be possible to negotiate- longer term and better rate with existing lender ?

Calm29

Thanks Holly
Would it make any difference if the holders of the subsequent charges couldn't be traced think one is overseas and another may no longer be in business?might it be possible to negotiate- longer term and better rate with existing lender ?

holly_hobby

No - the only way the charges won't follow sucession and prevent 1st charge of your new lender would be if they are deferred.

Bearing in mind, they belong to the ex, you couldn't negotiate anything regarding them in any event.

Can I ask, why the ex is still on the mge, and why their debt is still tied to the property, as this will prevent you remortgaging permanently (unless you want to pay them off of course).

Also, if the property is sold, they will be automatically redeemed along with the mge, with only the residue payable to you and your ex following their satisfaction.

So there are probs with these that you need to address if possible.

In the meantime you could ask the lender if you could move to another product, there will be fees if permitted.

Hope this helps

Holly

Thrugelmir

The property is jointly owned. So what agreement have you come to with your ex regarding the equity?

Gifting it to you is not an option. Given the charges placed on the property.

kingstreet

I fear the only option here will be a product transfer, otherwise known as a customer retention product. It sounds like you'll be unable to obtain the necessary deeds of postponement from the second charge holders, so no new lender will want to take you on.

I don't know that the chances are of you getting a decent new offer from a sub-prime lender.