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Remortgage problem due to second charge on property.
Comments
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The problem is that the council charge is automatically promoted to a first when the first mortgage is repaid, so the remortgage becomes a second, unless the council agrees to the Deed of Postponement.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »The problem is that the council charge is automatically promoted to a first when the first mortgage is repaid, so the remortgage becomes a second, unless the council agrees to the Deed of Postponement.
This is scary! I need to ask my lawyer about this.
I think you've just helped me to make up my mind whether to go for a 5 year fix.0 -
Asking your current lender for a new product is fine, as this is not a remortgage, no new mortgage deed is required.This is scary! I need to ask my lawyer about this.
I think you've just helped me to make up my mind whether to go for a 5 year fix.
However, if you did wish to change lender, that's where the need for the Deed Of Postponement arises, to prevent the Council charge being promoted to a first.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Asking your current lender for a new product is fine, as this is not a remortgage, no new mortgage deed is required.
However, if you did wish to change lender, that's where the need for the Deed Of Postponement arises, to prevent the Council charge being promoted to a first.
Thanks kingstreet, that's very useful.
Now I understand why Joe555 is in such a pickle.
The question that he (and now I) would like answered is:
is it up to the Council's discretion to issue this Deed of Postponement?
I live in the London Borough of the Worst in Everything-and Proud of It (the council, not me) so my LA will not give me anything they do not have to. Even with things they are legally obliged to provide they need to be dragged to the Ombudsman (or through the courts) on a regular basis.
So it seems for me that in my case (FTB) 5 year fix makes perfect sense, as the need for remortgage will not arise (though I will cry my eyes our shall the interest rates drop:) ) This does not help Joe555 though.
Does anyone out there know? Can the council be made to issue the DoP?0 -
There is no obligation on the Council to provide a Deed of Postponement. They will often do so for a straight refinance, but if you want to increase the mortgage, expect some pointed questions about the use of the funds and outright rejection if it is not for verifiable home improvements.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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How do I go by to get DoP with the council ?0
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Obtain a copy of the new lender's deed of postponement and ask the council if it is prepared to sign it.How do I go by to get DoP with the council ?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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