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remortgage with a charge on the house??
LJW_2
Posts: 354 Forumite
Does anybody know if you can remortgage your house if you have had a charge put on it?
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Comments
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Who is the charge in favour of? A lender or an individual?
You can only remortgage with the permission of whoever holds the second charge.0 -
It depends on what the charge was for.
If it was a charge for a secured loan, then yes you'd just need a postponment of the charge.
If it was for non-payment of a debt, then the creditor may want their money. It's up to them. They will stop you from remortgaging if they don't allow their charge to be postponed.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
Hi the charge was for a short fall on a mortgage if that helps?0
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So did you get a 95% mortgage when you bought the house and borrow the additional funds to buy (5%) from somebody like Welcome Finance?
If not, can you explain?I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
When you say second charge what does that mean?0
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Lenders have a 'Pecking order'
If The Abbey lent you money to buy the house as the main lender they would have the First Charge on the house. They get their money first if the house is ever sold for whatever reason.
You then get a secured loan from another lender for home improvements for example, and they take out a charge on your house and they have the 'Second Charge'. They are second to get their money if its's sold.
You then go through divorce and use Legal Aid and they put a charge against your house, this is the Third Charge etc.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0 -
But the second charge will have to give their permission for you to remortgage. As if lender one (the main mortgage) removes himself and charge two becomes charge on. However no lender would place themselves as charge two, especially not in a falling market. Hence the loan or second charge company has to give permission for remortgage and be placed back to second position, same as before the remortgage.0
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Hi Ian, i will explain a little. My OH may be having a charge put on our joint home from a shortfall from a home he had 10 years ago. We got a 100% mortgage between us. Is this what you mean?0
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So he had a repossession and there wasn't enough from the sale proceeds to pay off the mortgage in full?I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0
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Yes 10 years ago!! but only got in contact late last year!!
Had loads of advice from the debt forum for him.0
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