You do not have the right to transfer this loan to another lender.

Brock_and_Roll

This is just a "plain english" version of the standard assignment clause.

In a nutshell, lenders will always reserve the right to sell or assign the benefit of a debt but the borrower does not have these rights. i.e. the bank does not want for a whole load of legal, credit and regulatory reasond to lend to Mr X only to find out years down the line that its lending to Mr Y.

davidmcn

Brock_and_Roll wrote: »

This is just a "plain english" version of the standard assignment clause.

In a nutshell, lenders will always reserve the right to sell or assign the benefit of a debt but the borrower does not have these rights. i.e. the bank does not want for a whole load of legal, credit and regulatory reasons to lend to Mr X only to find out years down the line that its lending to Mr Y.

But that would be transferring the loan to another borrower, not another lender. The clause doesn't really make much sense to me.

Lovinash

kingstreet wrote: »

Totally redundant, IMHO.

You cannot be prevented from remortgaging, which effectively is the transfer of the loan to another lender.

When you say "You cannot be prevented from remortgaging", is that because the law says so?

davidmcn

Lovinash wrote: »

When you say "You cannot be prevented from remortgaging", is that because the law says so?

Essentially yes. You can repay the loan whenever you want - possibly subject to early redemption penalties. Whether you do that with a new loan or something else isn't the old lender's business.

Thrugelmir

The loan cannot be transfered as there'll still be a mortgage on the existing property held by the original lender.