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

tomtontom

electribem wrote: »

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

Read the responses again, everyone is explaining to you why the additional lending is not a good idea. There is nothing in law that will help you, the lender is free to lend you as much or as little as they wish.

ViolaLass

electribem wrote: »

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

You can't force someone to lend you money.

Tiddlywinks

You already owe arrears on your existing debt. The company has agreed to allow your consolidation request.

But you still want more? You want a new car and house improvements too? Even though you haven't been able to service your current level of borrowing.

If a friend owed you money and fell behind with repayments would you lend him more? And that's for a friend - this company is making a business decision.

You should be grateful they aren't taking recovery proceedings against you.

electribem

MERRY CHRISTMAS!! :beer:

silvercar

electribem wrote: »

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

When you took out the mortgage, it would have been made clear to you that a second charge on the property required the mortgage lenders agreement. If it wasn't made clear and just buried in their terms & conditions then you may have a case that their consent is not required under the Unfair Contract Terms Act 1977. If it was important to them they should have made it clear to you rather than burying it within T&Cs.

To be honest, you are more likely to get away with this if you have a secured loan company who don't require you to show consent and allow the loan to be placed and registered. At that point, the charge could be registered and the mortgage lender not notice or not take action. Then if the mortgage lender got upset if it realised you could claim the above.

The reason that mortgage lenders generally insist on you seeking their consent is precisely because borrowers taking on more debt increases the risk of them falling into arrears and the lender having to repossess. In purely financial terms the lender has fist call on the proceeds on a repossession sale above the secured charge.

electribem

Now I understand where some of the recent posters are coming from with their comments.

A new car is needed for my sister who is also on the mortgage also. She works for the NHS as a patient support worker. She needs a reliable vehicle to do her job effectively. She was on a salary sacrifice scheme with an NHS trust but had an accident and the car was declared a right off. She lost over £8,000 in monthly payments and still got charged a few months after for additional costs. The company dealing with scheme have been an absolute nightmare. I would forgo the amount allocated for home improvements and just concentrate on a vehicle. Renting a vehicle this time of year is sky high. The NHS have no fleet cars that can be used so you have to use your own. £1,000 was paid this month alone in rental fees. This can't go on.

At the end we came to the conclusion that being on a salary sacrifice scheme was not worth it. Good on paper but when it goes wrong your shafted.

All this I will be putting in an appeal letter to the Mortgage Company.

electribem

silvercar wrote: »

When you took out the mortgage, it would have been made clear to you that a second charge on the property required the mortgage lenders agreement. If it wasn't made clear and just buried in their terms & conditions then you may have a case that their consent is not required under the Unfair Contract Terms Act 1977. If it was important to them they should have made it clear to you rather than burying it within T&Cs.

Thank you for this.

We have been shunted around 3 mortgage providers since 2007. I think we were with Topaz 1st. Can't remember the other one......now Mortgage Agency Services 5 Ltd. I have the original Topaz mortgage papers. Are those papers still valid do you think?

PeacefulWaters

There is no legal requirement for your mortgage lender to agree the second charge on the property.

It's highly unlikely to be considered an unfair part of the mortgage contract and is standard in every mortgage contract I've seen.

As a former mortgage underwriter every alarm bell imaginable is ringing over loan purpose, arrears history, relationships of those party to the mortgage, amount of unsecured debt etc.

silvercar

electribem wrote: »

Thank you for this.

We have been shunted around 3 mortgage providers since 2007. I think we were with Topaz 1st. Can't remember the other one......now Mortgage Agency Services 5 Ltd. I have the original Topaz mortgage papers. Are those papers still valid do you think?

The original papers are valid as they show the contract agreement between you and the lender. If the lender then sold on your loan to a new lender then the original terms still stand.

I don't know who Topaz are, I presume they weren't a high street lender, suggesting there were issues (credit rating/ income/ high LTV) when you first took out the loan.

Please note I am not suggesting for one minute that it is a good idea for you to extend your debt. As others have pointed out, you would be better off reducing your borrowing.

stator

electribem wrote: »

Now I understand where some of the recent posters are coming from with their comments.

A new car is needed for my sister who is also on the mortgage also. She works for the NHS as a patient support worker. She needs a reliable vehicle to do her job effectively. She was on a salary sacrifice scheme with an NHS trust but had an accident and the car was declared a right off. She lost over £8,000 in monthly payments and still got charged a few months after for additional costs. The company dealing with scheme have been an absolute nightmare. I would forgo the amount allocated for home improvements and just concentrate on a vehicle. Renting a vehicle this time of year is sky high. The NHS have no fleet cars that can be used so you have to use your own. £1,000 was paid this month alone in rental fees. This can't go on.

At the end we came to the conclusion that being on a salary sacrifice scheme was not worth it. Good on paper but when it goes wrong your shafted.

All this I will be putting in an appeal letter to the Mortgage Company.

You can get a perfectly servicable car for £1k. So when you say "new car", I hope you don't mean "brand new" car.

Is a 0% credit card an option for you? I've bought a second hand car on a 0% credit card before.