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Advice on a further advance please? Sorry a bit long!
skintarooney
Posts: 403 Forumite
In 2004 we took out a further advance of £11000 for consolidation. At the time it had to go on a variable rate because our mortgage was in a retention period and couldnt go on any kind of product ie fixed/discounted rate.
We are now looking at putting the mortgage on a product aswell as take out another further advance for home improvements. Our current lender says that the 1st FA cant go on a product because its covered by the consumer credit act and it therefore classed like a loan.
My query is why is this? Our credit agreement states that they have agreed to provide us with a loan with the T&Cs set out in the regulated mortgage conditions.
It was sold to us as an extra part on our mortgage and we understood that we would be able to go on a product.
I have rung the Customer Services dept and alls they could say was that its because its under the Consumer Credit Act and couldnt explain any further. Apparently someone will call back tomorrow.
Can anyone shed some light on this? Any mortgage advisers out there?
Any ammunition I could use for when they call me back tomorrow?
Thanks in advance? Extremely grateful for any comments on this matter!
We are now looking at putting the mortgage on a product aswell as take out another further advance for home improvements. Our current lender says that the 1st FA cant go on a product because its covered by the consumer credit act and it therefore classed like a loan.
My query is why is this? Our credit agreement states that they have agreed to provide us with a loan with the T&Cs set out in the regulated mortgage conditions.
It was sold to us as an extra part on our mortgage and we understood that we would be able to go on a product.
I have rung the Customer Services dept and alls they could say was that its because its under the Consumer Credit Act and couldnt explain any further. Apparently someone will call back tomorrow.
Can anyone shed some light on this? Any mortgage advisers out there?
Any ammunition I could use for when they call me back tomorrow?
Thanks in advance? Extremely grateful for any comments on this matter!
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Comments
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Anyone? Please?0
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You first loan was not a further advance but a secured loan.
Further advances are only allowed for home improvements and not for debt consolidation. Your lender helped you to consolidate your debts to both help you to lower your outgoings and to help them to secure the mortgage loan.
Post your details and I will see if you are better off remortgaging.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
You first loan was not a further advance but a secured loan.
Further advances are only allowed for home improvements and not for debt consolidation. Your lender helped you to consolidate your debts to both help you to lower your outgoings and to help them to secure the mortgage loan.
Post your details and I will see if you are better off remortgaging.
JoeK
Thanks, I could understand that if that would have been explained to us when we took out the FA, my argument is that had I have known then perhaps a loan on a fixed term would have been better? What do you think?
Anyhow, my details are as follows:
mortgage at the moment:
22,000 on interest only and 18,000 repayment (9yrs 6mths remaining)
looking to borrow 25,000 (repayment)for home improvements possibly on a longer term than original mortgage. (I understand would prob have to have the whole mortgage on same term if I moved to another lender)
What do you think?0 -
Can't comment.skintarooney wrote: »Thanks, I could understand that if that would have been explained to us when we took out the FA, my argument is that had I have known then perhaps a loan on a fixed term would have been better? What do you think?
* How are you repaying the interest only part?skintarooney wrote: »Anyhow, my details are as follows:
mortgage at the moment:
22,000 on interest only and 18,000 repayment (9yrs 6mths remaining)
* Are there any redemtion fees for moving the mortgage?skintarooney wrote: »looking to borrow 25,000 (repayment)for home improvements possibly on a longer term than original mortgage. (I understand would prob have to have the whole mortgage on same term if I moved to another lender)
What do you think?
What is your income?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Can't comment.
* How are you repaying the interest only part?
* Are there any redemtion fees for moving the mortgage?
What is your income?
JoeK
We have an endowment in place for the interest only part and we have taken into account there will be a shortfall.
There are no redemption fees for moving the mortgage.
Income is approx £17,000 PA.
Thanks.0 -
Looking at your circumstances you could move the mortgage to another lender, although the income multple is slightly higher than normal, you should be ok with most of the high street lenders.
Do you have any adverse credit history at all?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
no adverse history, or any other loans etc0
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The ball's in your court now.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Thanks, really appreciate that you took the time to help!0
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You are welcome.
Hope it helped.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0
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