deed of postponement 60% L2V clause

gully5591

I am currently going through a remortgage on my property. I have a secured loan with 8k outstanding. Now I am disputing the outstanding loan amount with the financial ombudsman due to a separate issue though of course I continue to pay it. I currently have great credit etc.

Now I do not want to clear the 8k loan secured against my property due to this dispute so I wanted a deed of postponement. My property is worth £370k the remortgage amount is for £238k. Now the loan company have a clause saying they won't consider anything unless L2V is 60%. To me this seems ridiculously high the outstanding loan is only 8k and yes I could pay it but as I am disputing 2k of additional interest on this loan with the financial ombudsman service I just don't want to right now. However I cannot complete my remortgage without it or thats how it looks right now.

Can anyone offer any advice on this. 60% L2V just seems a high figure when theres so much equity anyway and we are talking a small amount in comparison to the remortgage. I really don't want to have to fork out the 8k while I am in dispute as much harder to get money back than not pay it!

Thanks in advance,

Michael

Thrugelmir

There's no legal obligation to offer you a deed of postponement. The lender can set whatever terms they wish. On commercial grounds they would probably happily lose you as a customer. Settling the debt doesn't affect your ability to dispute the charges levied and seek recovery.

jonesMUFCforever

If I was you I would get rid of the secured loan whilst remortgaging.
Then carry on the dispute as previous poster has advised.