2nd Charge Consent Given By Mortgage Company But With Terms We Don't Agree With.

electribem

We have managed to get a Secured Loan approved using the Loans Engine.
For 2 months my Mortgage Company....Mortgage Agency 5 Ltd have sat on a legal charge request until the loan provider was ready to complete yesterday. After a telephone plea from me....the matter was referred the head office of our mortgage company. A decision was made to grant consent for a legal charge with a condition that only the debt consolidation be paid. The other loan monies for a car and home improvement would not be consented to.
Is there any way we can get this decision overturned so we can access the full loan amount of £37,000?
Now I can understand their decision as our mortgage account is in arrears. My argument is that we are using this money to improve our chances of re-mortgage in 2 years time. The home improvement for the property obviously would increase the value and a fairly new car is needed for work proposes as we are renting one at the moment. Very expensive. So with all this going on we feel their decision is unfair.
Is their any advice anyone out there can give me so we can appeal this decision? We have really been through the houses to find a loan company that will lend. Then all the paperwork filing and information gathering was just horrendous to get to the point we are at now.
I know securing debt to the property is dangerous but my credit report would be fixed by this loan and as mentioned money is needed for home improvement and a car. Just need the money to help us get there.
Any comments please?

MERRY CHRISTMAS ALL :beer:

chanz4

I can see their point about the car to be honest

electribem

Why would the car be a problem?

jonesMUFCforever

Looks like your broker will need to re mortgage the total amount for you?

However as you have already seen, consolidating debt for depreciating assets are frowned upon by the new mortgage guidelines.

electribem

jonesMUFCforever wrote: »

Looks like your broker will need to re mortgage the total amount for you?

However as you have already seen, consolidating debt for depreciating assets are frowned upon by the new mortgage guidelines.

The consolidated debt is £22,000. The total secured loan amount is £37,000. How would the broker re-mortgage the total amount again?

jonesMUFCforever

electribem wrote: »

The consolidated debt is £22,000. The total secured loan amount is £37,000. How would the broker re-mortgage the total amount again?

You need a mortgage big enough to pay off the first charge + any additional borrowing.
If you don't then you won't get the second advance.

stator

Buy a cheap car and forget about home improvements.

silvercar

Now I can understand their decision as our mortgage account is in arrears.

Which makes their reluctance to increase your outgoings totally understandable.

If you can afford the loan, then arguably you could wait to take the loan and reduce your mortgage arrears by the amount you were prepared to pay on your loan in the mean time.

electribem

silvercar wrote: »

If you can afford the loan, then arguably you could wait to take the loan and reduce your mortgage arrears by the amount you were prepared to pay on your loan in the mean time.

When you say reduce your mortgage arrears by the amount you were prepared to pay on your loan....what does that actually mean? Sorry a little slow today. :j

silvercar

electribem wrote: »

When you say reduce your mortgage arrears by the amount you were prepared to pay on your loan....what does that actually mean? Sorry a little slow today. :j

If the loan repayments for this second loan you wish to take is say £300, then instead of taking the loan now (which would commit you to an extra £300 outgoings), use that £300 a month that you had set aside for loan repayments to reduce your mortgage arrears.

This will have the positive effect of:
a) showing the lender you can manage your money and possibly make them more likely to agree at a future date
b) reduce your overall debt
c) make repossession of your home less likely if you can show that you have tackled the arrears, if you got into a further bad situation in the future.

electribem

Does anyone know of anything in UK property Law that we could use to argue the mortgage company's decision?