Remortgaging & Broker problems

ackles23

Hi All,

I am currently going through the remortgaging process after purchasing my house on a help to buy scheme 2 years ago (20% shared equity loan) so everything is new to me.

I compared mortgages on a comparison site and got in touch with a broker.

I told him that i had 'x' amount on my mortgage and want to additionally borrow more to pay off a personal loan i had with halifax who i also have the mortgage with currently. This would have halved my monthly outgoings and would also have saved me from going in my overdraft so often etc. Anyhow, I told him that i was on a help to buy scheme etc from the start. He said he charged a fee of 395 on completion which he has already taken from me (well moneyquest). I said thats all i want to pay and if you find me a deal with whoever depending on their fee i will include that in the mortgage or not do, It was 995 so i included in the mortgage. I said i don't want any other fees and he said there won't be.

He went and looked at deals for me and it got to the stage where i signed the mortgage deed etc from a solicitor company called optima legal acting on Natwest (new lenders behalf). They said i had to pay a deed of postponement as the new lender had to be above HCA loan. (the broker said he didn't know anything about this?) They said originally £180 which has now gone to £300 as its a different type of deed of postponement. I wasn't aware from the outset i would have to pay extra fees or anything like this?! I also have to pay HCA £115 for them to do the postponement, so now thats an extra £415 which i don't have and putting me in more debt just to remortgage. HCA also said they don't allow additional borrowing (unless putting towards their loan), the broker said he didn't know that either. So i asked him to just do a like for like no additional borrowing but it seems i still have to pay this £415 to to the deed of postponement if i want to go with a new lender?

My broker seems like a very nice chap and hes saying he didn't know about deed of postponement or additional funds but i feel like i haven't been provided the right mortgage for me and if i go to get my 395 back from moneyquest he doesn't think i will get it.

I just need advice, help, a solution please?

Thanks
Mike

kingstreet

NatWest won't take a remortgage with an existing HTB loan left in place. It would have to be repaid.

In addition, the HTB Agent, Target will not let you borrow more without redeeming the HTB loan first.

Have a read of the Target website. Here's the section on remortgaging where a deed of postponement is required (HTB loan left in place while moving mortgage to a new lender);-

http://www.myfirsthome.org.uk/iwantto/remortgage/

Hopefully, you noticed;-

The new mortgage must be no more than the existing loan with the main lender mortgage. The exception to this is if you are going to use the additional borrowing to repay your equity loan.

Wrong lender from the outset IMHO. With the lack of knowledge of HTB Equity Loan in the broker market, you are going to have to increase your knowledge level to avoid future issues.