Mortgage further advance. Am I safe?

Solicitorious

Hi. Took out a mortgage on a BTL 9 years ago. (actually a "commercial" mortgage.) Was agreed at £100k (75% LTV)

I only drew down £35k at the time. Now looking to draw down the rest (the other £65k). Property value has probably almost doubled, rents increased 65% since then. Pefect repayment history on mortgage.

Problem: I now have a four-year old CC default. (£3k)

Spoke to lender (sounded like a call centre) about drawing down the balance. Seemed to be a formality. Just write in, money will be transferred to your bank account, etc.

Questions: Will they do a credit check? Will they likely change their tune about the further funds? Will they (god forbid) "call in" the existing mortgage? Should I risk it?

Thanks for any advice, and opinions on obtaining any other mortgages in my current situation.

GMS

Which lender is it?

Solicitorious

the one in Chatham...

Let_Us_See

".....thanks for any advice, and opinions on obtaining any other mortgages in my current situation."


"the one in Chatham...."


What kind of an answer is that???

The people of this forum are not mind readers and perhaps a little more information would result in the assistance you are seeking?

Solicitorious

Sorry, just being cautious.

K
R
B
S

Let_Us_See

As you have already contacted lender, did you do it as account holder or as a "what if" scenario? If account holder then it appears not to be a problem.

Refer back to your mortgage offer to confirm any future drawdown facility was guaranteed or not subject to additional T & Cs at drawdown.

Finally.

".....thanks for any advice, and opinions on obtaining any other mortgages in my current situation."

Anyone will need a lot more information before trying to answer this query!

Solicitorious

Hi thanks for the reply.

I gave my account number, and after some delay getting their computer to respond the available drawdown and interest rate was confirmed and I was told:- Yes, just write into our lending department giving your bank details and the funds will be transferred (for a small fee.) Of course I didn't mention the old CC default. IIRC the mortgage was taken out as a "commercial mortgage" and they didn't seem to be that interested in my personal circs at the time, just the value and rental value of the property (which was/is more than ample to cover the mortgage.)

I take it the worst case scenario is they might refuse. But is there any chance they could call in the mortgage?