Mortgage Retention

happygo_2

I needed to get a mortgage ASAP as the house i wanted to buy had other offers and was told basically if i did not have the paperwork within a short period of time, the house would go to someone else. My mortgage offer had a retention of £5000 - long story short the house was converted into 3 flats and my mortgage provider wanted to ensure all 3 flats were self-contained ie separate water meters etc. I think this is completely unnecessary and am including water in the rent charged.

My question is, (and I apologise in advance for being so dense) can ask my mortgage provider to deduct £5000 amount from repayments? I am at the moment paying the full amount that i initially asked for but as i didn't get £5000, why do i have to pay for it with interest?

Leon_W

If I follow this right. What you are saying is that you think you are making repayments on the full amount when the lender has deducted £5k as a retention ?

If that's the case then I think you are probably not getting your facts straight. In every case where I have encountered a retention then interest is only payable on the amount borrowed until such point that the retention money is released. However, in this job you learn something new everyday so I wouldn't put it past some unscrupulous lender to try it on !.

Recheck your paperwork as I think you'll find that you are making payments on the lower amount.