Can they do this?

themoogster_2

I took a Mortgage out with GMAC back in August this year. Near the end of September they sent me a letter stating my mortgage has been transferred to another lender Topaz Financial PLC.

Prior to receiving this information GMAC had agreed to a second charge on my property for home improvements, this was sent to the broker acting on my behalf.

However because of delays, postal strikes, etc. The second lender now needs authorisation from Topaz as they are now my mortgage provider. However Topaz are refusing to grant the permission, saying that their policy (which I have not recieved) is I have to be with them for 6mths for them to consider allowing a 2nd charge.

Are they allowed to this? Considering it was not my choice to go with them and that GMAC had already given consent. Can anyone give me advice on this? I would like to know where I stand.

Thanks:mad:

dunstonh

Yes they can do that. Whilst they wont alter the original terms they can decide what future terms will be.

To be honest, you cannot blame them as anyone that uses a company like GMAC is doing so (at least in the last few years - not so much when they were buying business with better rates a long time back) because their credit is not too good. To then want a further advance within 6 months suggests you have money problems. It may not be the case but that is how it sounds. With the credit crunch, lenders are tightening up how much the lend and to whom. Some things you could do 4 months ago cannot be done now.

themoogster_2

Thank you for the info. You are quite right in stating the critereas to which GMAC borrow money to. However Topaz are fully aware of the type of clients GMAC have and my thinking is if you inherit a business then you inherit the risk. In addition when my mortgage was with GMAC, if I wanted to
change lenders then I would have to pay a penalty to move. Thats my choice, I chose GMAC. I did not choose Topaz, for me to move it will cost me 12-15k, do you not think as consumer, I have been hard done by. Furthermore I am pretty sure GMAC were aware of their mortgage being taken over, is it not an obligation for them to inform potential new customers this before contracts/agreements are signed. I started with them in August and in september I get told of the takeover, however this must of been on the table before this time.

UK007BullDog

GMAC-RFC get their money by selling their lending portfolio on to other lenders or investment houses. If you google for some basic information on this you will see that we are giving you the right information. As GMAC has no high street presence to speak of and no way of hauling in retail banking profits, the only way for them and it is also a legal requirement is to sell off some of their mortgages. So you as a borrower have no say in this. The new lender can decide if they want to lend you money or not on their own merit and cannot be forced to give you the money. With the current credit crunch a lot of subprime (and even some prime) customers will find themselves with new lenders they have never heard of.

I am actually remortgaging a couple of prime cases as their mortgage was sold off for the 3rd time and they just want to be with a high street bank again.

herbiesjp

themoogster wrote: »

Furthermore I am pretty sure GMAC were aware of their mortgage being taken over, is it not an obligation for them to inform potential new customers this before contracts/agreements are signed. I started with them in August and in september I get told of the takeover, however this must of been on the table before this time.

I think you will find that the offer letter and the T&Cs will include the fact that they securitise their lending. So somewhere in the conditions you will have given consent for them to sell on the mortgage.

It is a well known fact that Gmac does this - to brokers anyway

danm

......however, i do not think the buyer of the portfolio has the right to change the original T&C's re: the conditions laid out to the borrower.

I would check the wording of your original agreement with regards to 2nd charges.

if it says somthing along the lines of "No second changes within 6 months of the original loan", then i would suggest you may have somthing to work with.