Mortgage Madness

markwms

I have no idea who to speak with:
In 2002 my wife an I applied for a mortgage. A popular mortgage lender provided us with an endowment mortgage, which we would pay back over 25 years.

In 2006 I was offered a job as a Holiday Park Manager, which meant that we would have to live in a house on the holiday park. We visited our local branch to explain our change of situation and that we would be renting the house that we had bought. We were advised to send the Principality a copy of the tenancy agreement every year.
We did this, but I do recall forgetting to send the tenancy agreement on a couple of occasions, however after the Mortgage lender reminded us we started sending copies again.

In around 2015/2016 we visited the Local branch to request a change of mortgage from endowment to repayment, which was successful. We also started a separate life insurance policy at the time.

I was contacted by the Mortgage lender last week to explain that they could no longer continue our mortgage and that we would need to look for another mortgage provider. Their explanation was that we have a residential mortgage that requires the mortgage lender to live in the house that has the mortgage. They explained that they could offer a buy to let mortgage, however due to my son living in our house they couldn’t offer us anything.

We have a small balance of several thousand to pay off on our mortgage, so I inquired about a loan, but soon discovered that I can’t apply for a loan to pay for a mortgage.

I have no idea where to go from here.
Will another mortgage lender be able to provide us with something? Plus they will obviously add interest to the balance we need to pay off.

Any advice would be gratefully received.

getmore4less

How much is left to pay?

markwms

We have a balance of £7.7k

getmore4less

That's credit card territory

Can your son some raise any cash to lend you?

How much can you afford a month?
How much are you paying?
Is there still 7 years left on the current mortgage?

markwms

Yes - 7 years left.
There is no way my son can raise anything.
I thought about requesting a loan for home improvements (little white lie).
This worked out £13 cheaper than our mortgage per month over a term of 5 years, which we can afford.

[Deleted User]

Check the terms and conditions of the loan. I recently learnt via this forum that not all personal loans restrict in this way.

I think the specific one linked was Post Office that just said 'any legal purpose'

markwms

Thanks Deleted_User.
I just took a brief look at the post office loan website. I only spotted:
Personal Loan
Car Loan
Debt Consolidation Loan
Home improvements Loan
Holiday Loan

I’ll go a little deeper, it could be under Debt Consolidation.

getmore4less

markwms wrote: »

Yes - 7 years left.
There is no way my son can raise anything.
I thought about requesting a loan for home improvements (little white lie).
This worked out £13 cheaper than our mortgage per month over a term of 5 years, which we can afford.

What rates your 7y mortgage that a loan over 5 years is cheaper per month?

markwms

I’m not sure getmore4less, I’d need to take a look. But I was surprised when I worked it out.
I do know our mortgage is variable not fixed.
The loan I looked at was 3.4%, however the post office are offering 3.2%.

gj373

From Post Office loans T&Cs:

Using the loan
The ‘cash loan’ shown as part of the total amount payable’, or any part of the loan, is not made under existing or future arrangements between
us and any supplier of goods or services, and there are no restrictions on how you use it.

markwms

Thanks gj373. No wonder I couldn’t find it, I was looking for mortgage specific statements.