Mortgage Lender Charge Error

I have a very small mortgage, with a LTV of 15%. During a recent application for additional borrowing for some home improvements, my existing lender discovered they had only put a charge on half of my property (self build with two registered titles). My previous lenders have all had a charge on both, so I don't know how this lot missed it.
I've withdrawn the additional borrowing application as the communication was terrible and they took over 3 months before they even found this issue. I decided I didn't want to be stuck with this lender longer than necessary, and with two separate products. 
My mortgage lender has now sent a form for me to authorise them putting a charge on the other half of the property.  My question is do I have to sign it? If I don't, what are they likely to do? Call in the mortgage? I would be very happy to be able to move to another lender and would probably get a slightly lower rate at this point. 

Comments

  • ACG
    ACG Posts: 23,605
    First Anniversary Name Dropper First Post I've helped Parliament
    Forumite
    If you are applying for another mortgage, do it. Call them up and just explain that you are switching lenders so by the time they process it and it gets updated on the land registry you will be done anyway. You dont want any hold ups due to the land registry so you will hold off filling in the form. 

    If they are not happy put in a complaint - by the time they deal with it you will be gone anyway. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I’ll have to pay an early repayment charge if I switch before my deal ends (2025) 
  • ACG
    ACG Posts: 23,605
    First Anniversary Name Dropper First Post I've helped Parliament
    Forumite
    Ah fair enough. 
    I dont know what they could do, but I feel like there will be something along the lines of "we need a charge over the property" as part of the T&Cs and if you do not stick to the T&Cs they could call in the loan. 

    Im not sure if they would, but I would probably pick up the phone and try and have a conversation with some sort of manager to see if they would hold off for the sake of 18 months. I dont think they will, but no harm in asking. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • silvercar
    silvercar Posts: 46,721
    Academoney Grad Name Dropper Photogenic First Anniversary
    Ambassador
    I doubt they could call in the mortgage. You have kept up repayments and they have a charge, even if it is only on some of it. 

    On the other hand, what have you got to lose? You can't sell one half without the other, so there is little loss to you by not agreeing.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
Meet your Ambassadors

Categories

  • All Categories
  • 341.4K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449K Spending & Discounts
  • 233.5K Work, Benefits & Business
  • 605.5K Mortgages, Homes & Bills
  • 172.3K Life & Family
  • 246.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards