Problem Remortgage

leofe

We have 2 (non status) mortgaged properties, both of which have been conducted without any problems. We have equity in the 2 properties of around 900,000.oo. We also have another which is unencumbered which is valued around 600,000.oo We have just been given planning permission to extend one of them and would like to remortgage for 150,000.oo with this amount being repaid when one of the properties is sold in 2 years. Our problem is that we sued our bank for negligence 6 years ago, at the time they defaulted us on 3 credit cards (all of which we had never been late in paying) by stopping access to our accounts. The litigation was long and very painful and we had to stop it as we were being driven in to the ground by the bank. All of this is well documented. Any advice would be gratefully received

ACG

Get your credit reports and speak to a broker.
Defaults 6 years old on credit cards should be easy enough to overcome, especially with the amount of equity you have.

Thrugelmir

Not sure how many lenders will accept a future sale as security against a further advance. Seems simpler to just sell a property now to raise the funds. Sounds as if there was more at issue than just 3 defaults on your credit report for litigation to be necessary.

leofe

The litigation was necessary as they had made four very serious mistakes on our account, all of the staff involved lost their jobs and we had lost an awful lot of money. If we had known just how terrible taking action would have been we would never have entered in to it,our barrister described it as the worse case of bullying he had ever encountered. We should have saved the money we spent on lawyers as they are powerless in these situations - on reflection we should have bought a Mongoose and thrown it in to the bankerS pit. Regarding the credit cards, when the bank removed all access to our accounts, telephone, internet and all standing orders and direct debits, our lawyer instructed us to ask for all copies of our agreements, itctranspired that none of them were valid. The property we want the extra mortgage for is the one we will sell.

MortgageMamma

If you don't mind me asking, how old are you and where is your income derived from? This is crucial information as regards to the type of finance product that can be used. I know you feel the past problems with the bank may hold you back but it may not be the case. Get a copy of your credit files from Noddle or Checkmyfile and have a look what is on there - as the problems arose 6 years ago the defaults may have dropped off your file by now anyhow. I think in the circumstances you are best taking professional advice off a broker, although there is lots of equity the amount you need to borrow vs your income and regular credit commitments need to be considered.

Thrugelmir

leofe wrote: »

The property we want the extra mortgage for is the one we will sell.

Then mortgage finance isn't appropriate for the purpose you require.

leofe

I am 59 - my partner is 56, most of our income since the litigation has come from our Rental Incomes we do whenever needed take money from our company, this is why we have always had non status mortgages, but as the 7 years of litigation brought our company to its knees we try to put every penny back. The company makes a profit, and with the cash injection we will give it once the property is sold it will be back to its former standard. We have been told by various people that lenders will not consider rental income nowadays, but we have never been without tenants since 1995.So really what we need is a non-status mortgage.Just need to be recommended to a good Broker.