Desperate!

moran73

I wondered if anyone could me any advice on deed of postponement - we were recently accepted by Gmac through National Guarantee for a remortgage that would have cleared our existing debt but found out today - at completion stage - that EPF, who we have a loan with, will not postpone our loan.

The woman I spoke to at National Guarantee said that was that and there was nothing more they could do. EPF won't borrow us the extra £10k on our current loan to get us out of our current situation but I don't see anyway of us ever switching mortgages to save money or remortgaging whilst with them because they keep refusing to postpone.

I'm hoping that the woman I spoke to was wrong as this seems like a bad dream - we were so close to getting our situation sorted out and was accepted and everything was to close to being over and I think its so cruel to just end it all here because of EPFs conditions.

Has anyone had the same experience or know if there is anything else that can be done? I'm calling both companies on Monday to see what is happening but would like a little background knowledge before I start whining.

I would be very grateful as I'm at my wits end.

Xbigman

As no one else has replied I'll have a bash.

I think your problem is about who has first charge on your property. So you situation is that you are trying to remortgage but you already have a secured loan which has priority. You are trying to get the secured loan company to give up their first charge in favour of the remortgage debt?

If this is the case it hinges on whether you are clearing the secured loan with the remortgage funds or not.
If you are you should arrange through your solicitor to have the secured loan paid off directly from your solicitor to theirs. This should not be a problem.
If you are not paying off the secured loan, I think you have no chance of this going through. A lender who has given you a secured loan would always be unwilling to drop down in priority for being paid.

Of course I might be barking up the wrong tree and this isn't the problem (you might be talking about arrears, if so please let us know).

I must add. Your finances sound like a nightmare. Is a remortgage a good idea? If you are making unsecured debts into secured ones that is always bad news. You might well be better off tackling your finances head on. You can post more information on your general situation if you want more advice.
Regards



X

Debt_Free_Chick

Where do you live? Eng & Wales or Scotland?

I don't understand the statement about postponement. If you are remortgaging to clear the debt, then what does "postponement" have to do with it?

Can you give us more background information, please?

Bossyboots

I'm with Xbigman here, this is what I figured the OP meant and the reply was spot on.

Unusual though to have a secured loan as priority over a mortgage but I guess that is why the problem has arisen now.

Xbigman

If I read the post right. OP has a mortgage (first charge) and a secured loan (2nd charge) and wants to remortgage (which would be third charge) but the remortgage company will only do it as first charge so wants the secured loan company to postpone their charge and give them (remortgage co.) priority repayment, which they don't want to do.

As the OP isn't clear, this could be about arrears, where someone wants all arrears cleared before money can be lent to clear the arrears, but I think my first guess is right.
Regards



X

Bossyboots

I think you are right, this is about the pecking order of the loans. I assumed they are re-mortaging the first charge and I have not come across difficulties of second chargees refusing to postpone except where the re-mortgage uses up too much equity and potentially puts the second charge at risk. If you are right and it is a separate mortgage then of course the loan company are not going to want to move further down the list.

IN_LIKE_EVERYONE_ELSE!

Remortgaging to clear both loans is the best bet here, unless there are redemption penalties? These companies are B**T***S. Can I say B**T***S?

moran73

Thanks for the replies - the situation is that I have a mortgage with RBS and a secured loan with EPS. The debts I am clearing are my credit cards so am only remortgaging and borrowing an extra £10k to clear these and get a better rate. With the equity in the house at the moment we do not have enough to remortgage and pay clear the loan aswell - not with Gmac anyway and they are the ones who have accepted us.

The problem I have is that this is the 3rd occasion where EPF have stood in the way of us either switching or remortgaging. They said that they may be able to lend us the extra amount but then said that at this time they couldn't - I don't understand this as Gmac did all the off the relevant checks and accepted us for the extra amount but the loan company I am already with said they couldnt.

I just feel that I am always going to be in this position and feel desperate and sad now that our hopes were raised and then dashed like this - the agent who we spoke to in the beginning said the postponement wouldnt be a problem and we were accepted by their first lender. Isn't there anything that they can do as they are set to receive a hefty commission for this.

Are there any other companies who can remortgage for a higher amount so we can clear the loan and borrow the extra. Our mortgage is £40k and the loan has £39k outstaniding so we would need around £90k altoghether.

I received a letter from EPF the day after the agent from Gmac said they could do no more for us stating that they need £120 fee to be paid in order to process a deed of postponement so I don't know whether this means there is still a chance. I plan to call EPF tomorrow and ask what exactly their policy is because I have been told 3 different things so far and ask them why they can't help me seeing as they are standing in the way of us being helped.

Thanks again for all of the replies - i hope someone out there has been in the same situation and can offer some light.

Bossyboots

Are you clearing your RBS mortgage or is this a third loan?

moran73

Yes I will be clearing RBS mortgage so it will just be my mortgage and the loan

Bossyboots

The only thing I can think then is that EPF are concerned you have borrowed against too much of your equity. They are not being demoted in the pecking order so in that respect they are no worse off. Perhaps it might be an idea to check that they understand their position will not change and that they don't think this is a third loan.

If you have borrowed close to your equity and property prices fall too far, there may not be sufficient for them to recover their loan if you default. They may just have told you there is a fee payable as a standard letter, or someone else may have looked at the paperwork and will process the postponement.

You do really need to know what their reasons are for not agreeing to postpone. Speak to them tomorrow and then come back and post here what they say.