Mortgage company steals my money

[Deleted User]

Please explain, what on earth do your mortgage company have to do with the sale? How are they just going to take money from you? You are right that they have no right to take the money from you, so you're either misunderstanding the process or there is some serious negligence going on (which seems unlikely). They can't just dip into your bank account willy-nilly.

Have you spoken to your solicitor, have they explained what is happening? Please explain further and put aside your anger/frustration for a minute so people can get a clearer picture and help you.

ognum

There is simply no enough information to make a choice!

DTDfanBoy

YES

ACG wrote: »

Are/Were both mortgages with the same lender?
Are/Were you in arrears on either or both mortgages?

A lender cant just take £70k theyre not entitled to and i get the impression either you are confused or misunderstanding something. If they are taking £69k then i suspect there will be a reason for it.

Forget the fact that you bought houses for childs inheritance - that has no baring on the fact. Just stick to the facts and figures and we can try to narrow down if there is a problem or if your mistaken.

I imagine that both properties were purchased with BTL mortgages from the same company. Quite often BTL mortgages will have a right to consolidate built into them, the mortgage company seems to be exercising this right.

WestonDave

My guess is that both properties were mortgaged with the same lender, that the lender has seen the only source of income (i.e the rental income) disappear with the sale of house 2, and has not unexpectedly decided that it doesn't want to end up high and dry as the remaining limited equity in the primary residence disappears due to accumulating interest and no repayments. If it has the powers in its terms to consolidate the two mortgages then from a business perspective what its doing seems eminently sensible. The alternative is that in a couple of years the mortgage balance exceeds the £100k value of the house, its going to be chasing for unsecured excesses having handed back £70k earlier on the first sale.

As these were originally business mortgages rather than domestic residential mortgages its entirely possible that this offsetting clause is within the agreements.

However more complete info is needed to enable proper advice to be given.

theartfullodger

YES

Voting currently 7 to 2 against you: Sounds about right.

You have chosen to live the way you do: You chose to buy these 2 B2Ls. You chose to gamble the future income for yourself & kids by doing that. If it had all worked out & you'd made a huge profit would you now be asking which charity to give it all to?? No, so don't expect someone else to pay up if things go the other way.

As I understand it you moved into one of the properties thus breaking your mortgage terms.

I am unable to see under what circumstances what is going on is theft: Can you please explain in one single sentence of less than 2 lines please?? It may be me being thick.

I presume what is happening is that under the agreed terms of your mortgages (that you signed - nobody else signed them..) if you sell one property then the mortgage company is entitled to take all of the proceeds up to what is owed... Well, you agreed those terms... Or are you suggesting breaking contracts is OK &, for example, tenants don't need to bother paying rent or looking after properties they rent??

You seem to suggest (?) you are not entitled to anything (sorry ANYTHING). What is you you think you should be entitled to, please??

Sometimes investment decisions work out, sometimes they don't: End of. The only person to blame in such circumstances is oneself. (I speak having lost 100% of share value in 2 companies in the last 2 years: These things happen. )

Why did your wife divorce you (or why did you divorce the wife)???

Cheers!

PS Now on my 3rd successful marriage... Don't ask me about legal fees I'll have to go into a dark room and cry for several hours..... but I won't start a poll asking if it was fair,....

PPS Good abbreviation: SUMO. (Shut up, move on).

GINNAK2

NO

In total, both mortgages, I owe them £236,000, but these are separate mortgages, which separate account numbers. The mortgage in question is approximately £101,500 and house has sole for £170,000. The solicitor says that they are break rules regarding land registry apparently, but I takes a solicitor to understand the ins and outs and technicalities. The fact is that I paid the original fees on purchase, I saved and provided the deposit, I took out the mortgage (risk), I've paid the interest for 13 years and I've paid for the sale of the property. As I've said, this is no different than a bank taking the interest from your savings, apart from the purchase fees which obviously leaves me out of pocket on the whole deal.

theartfullodger

YES

GINNAK2 wrote: »

... but I takes a solicitor to understand the ins and outs and technicalities. ...

If you signed a deal you couldn't understand but didn't take professional advice to have it explained, who's fault is that???

...apart from the purchase fees which obviously leaves me out of pocket on the whole deal.

No, you now owe the mortgage company much less than before. You are not more out of pocket.

ILW

You took a speculative gamble on property and lost. It's the way business works.

DTDfanBoy

YES

GINNAK2 wrote: »

In total, both mortgages, I owe them £236,000, but these are separate mortgages, which separate account numbers. The mortgage in question is approximately £101,500 and house has sole for £170,000. The solicitor says that they are break rules regarding land registry apparently, but I takes a solicitor to understand the ins and outs and technicalities. The fact is that I paid the original fees on purchase, I saved and provided the deposit, I took out the mortgage (risk), I've paid the interest for 13 years and I've paid for the sale of the property. As I've said, this is no different than a bank taking the interest from your savings, apart from the purchase fees which obviously leaves me out of pocket on the whole deal.

Have you read the terms of both mortgages, do they allow the mortgagee to consolidate, if they do it should be no surprise to you that they are choosing to do so.

Capital Home Loans were a sub-prime lender who are no longer issuing mortgages and are probably doing everything possible to reduce their current liabilities.

WestonDave

So you had assets of £270k and loans of £236k, sell £170k of assets and want to pay off £101k leaving you with an asset worth £100k and loans of £135k outstanding. Not going to happen if they have any means of avoiding it.

I'd further hazard a guess that the remaining house was originally at a similar LTV but has now accumulated unpaid interest so that the value of the mortgage exceeds the value of the property.

Unfortunately whilst your circumstances are extremely difficult, that's not the lenders problem to resolve - welfare state possibly but not a commercial lender.

The driver here is clearly the serious debt overhang they'd be left with if they didn't do what they are doing so in that sense if they have the option to consolidate they have little option financially but to take it.