Deed of Postponement

laticslass

I currently have a mortgage and secured loan. To consolidate debts we are taking out additional borrowing with our mortgage lender. The secured loan is with someone else.

I've been told to complete the Deed of Postponement for a remortgage, but we are not remortgaging this is a seperate product. Does anyone have experience of this process

Gizmo247

By the sounds of it the new lender is trying to push the existing secured loan lender down the charge stack. Good luck with that!

If I were being cynical, I would say the new lender is trying to get you to do their dirty work for them by misrepresenting the nature of the new charge on the property.

Perhaps time to take a step back for a moment and consider if taking another loan is the right course of action. Perhaps those on the Debt Free forum may be able to offer some advice.

laticslass

Thanks for the advice

Senior_Paper_Monitor

In the 'natural order of things', under your plan ....


1) First charge - existing mortgage


2) Second charge - secured loan


3) Third charge - mortgage additional borrowing




This will not be acceptable to the mortgage lender - who will require the two top positions (which effectively become the one position - first charge).


This will require the secured loan lenders permission (without this the additional mortgage borrowing will not go ahead).


This will be handled by the solicitor acting for the mortgage lender - (you are presumably just filling in a form for them) and they will charge you for this.


Whether the secured loan lender agrees is totally up to them - and will be dictated by their policy (which might relate to total LTV and a number of other factors). In simple terms, there is nothing to their benefit in this deal !


It may be worth your investigating with the second charge lender how they are likely to react before you incur application/conveyancing costs.


It might be worth investigating whether your mortgage lender will also consider consolidating the second loan (may be cheaper and easier).


With a second charge borrowing and now a debt consolidation transaction in your history I would echo Gizmo's comment and suggest that some careful budgeting (and possible amendment to expenditure) should be conducted with regard to your future finances.