Loan against our existing mortgage

CiscoPa

We took a loan against our mortgage which is a 2nd charge.

We're struggling to pay now.

Can we add the outstanding amount to the mortgage so in the event of sale or demise it is paid off.

Would appreciate a reply from people who've experienced this.

Thanks in advance

silvercar

The loan is registered as a second charge against the property. It isn’t registered against the first mortgage.

Whether you can incorporate it into the mortgage ie increase the mortgage to cover the amount you need to pay off the second charge depends on whether the lender will agree to increase the mortgage by the amount you need to clear the second charge. This will depend on factors like (a) whether you earn enough to be granted an increased mortgage (b) whether the resulting total loan to value ratio of the new mortgage is within the lenders accepted range (c) whether the terms of the second charge allow early redemption of the loan (d) whether your outgoings and credit rating show that you can afford a mortgage of the size you need.

If the lender agrees it would mean increased mortgage payments, even on an interest only basis.

ManyWays

We're struggling to pay now.
I suggest you post on the Debt Free Wannabee board https://forums.moneysavingexpert.com/categories/debt-free-wannabe