Equitable charge and current/future mortgage on our home

JBrighton

Hoping someone can help with this question!

My husband wants to allow a company to put an equitable charge on his interest in our property (we are tenants in common with a trust deed detailing ownership) in order to secure a business loan.

Firstly, is it likely that our current mortgage company will allow this? Or is it possible they might refuse to allow another charge?

Secondly, will it make it difficult for us to remortgage when we come to the end of our current fixed rate deal in a year or so?

Thanks is advance

djphig

If it is a 2nd charge your current mortgage provider can refuse another charge, however, if it is actually an Equitable charge, your current mortgage provider doesn't even need to be informed so consent is not an issue.

Thrugelmir

Do you have plenty of equity in the property. First charge lender will be more relaxed if the likelihood is that they'll recover their money in full.

djphig

It doesn't matter - for a true Equitable charge, no consent is required