Ulster Bank Second Charge
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Keviola
Posts: 13 Forumite
in N. Ireland
Hi folks,
I would really appreciate some advice. My wife and I took out a Momentum Mortgage with the Ulster Bank in 2009. This basically allowed us to purchase our home with the developers paying the 5% deposit. This would not be payed back if the value of the house did not rise by atleast a 5% and it also entitled us to a 10% reduction in our mortgage if the house price dropped after the initial 5 year tie in period, again paid for by the developers. In turn, the developers held a second charge on our property for this period.
After 5 years the Ulster Bank arranged a valuation and this found that the house price had dropped. Our mortgage was reduced by the agreed amount and a letter was sent to say that the second charge would be removed.
Now, 2 years later, we are in the process of selling our current home and buying a new one. We are on a right deadline as our new property can not start to be built until we have exchanged contracts on our sale. 3 weeks ago we found out that despite everything that had been done, the second charge was never lifted. The bank have fully admitted that this is their fault, however the developers are now querying the legalities of what they signed up to initially and are refusing to remove the second charge.
Obviously this has put us in a position where, through no fault of our own, we are close to loosing both our sale and purchase as the bank cannot give us a timescale for how long it will take to remove it. I have put in an official complaint and contacted the financial ombudsman to data to. However I am hoping that someone might have some further suggestions for what can be done?
Thanks for any help that you might be able to give!
I would really appreciate some advice. My wife and I took out a Momentum Mortgage with the Ulster Bank in 2009. This basically allowed us to purchase our home with the developers paying the 5% deposit. This would not be payed back if the value of the house did not rise by atleast a 5% and it also entitled us to a 10% reduction in our mortgage if the house price dropped after the initial 5 year tie in period, again paid for by the developers. In turn, the developers held a second charge on our property for this period.
After 5 years the Ulster Bank arranged a valuation and this found that the house price had dropped. Our mortgage was reduced by the agreed amount and a letter was sent to say that the second charge would be removed.
Now, 2 years later, we are in the process of selling our current home and buying a new one. We are on a right deadline as our new property can not start to be built until we have exchanged contracts on our sale. 3 weeks ago we found out that despite everything that had been done, the second charge was never lifted. The bank have fully admitted that this is their fault, however the developers are now querying the legalities of what they signed up to initially and are refusing to remove the second charge.
Obviously this has put us in a position where, through no fault of our own, we are close to loosing both our sale and purchase as the bank cannot give us a timescale for how long it will take to remove it. I have put in an official complaint and contacted the financial ombudsman to data to. However I am hoping that someone might have some further suggestions for what can be done?
Thanks for any help that you might be able to give!
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Comments
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Hi there,
I am in the same predicament as you, I took out a momentum mortgage in 2012 and the developer has gone bust. The Ulster Bank told me nothing about this and I'm due to sign for a new house in three weeks time.
Where you able to get any further on with yours?0 -
Hi, sorry to hear that. We eventually managed to get ours lifted but not in time to save the house sale. It took a lot of leg work on our part as Ulster Bank were unable to force the issue with the builder. We had to threaten legal action and it still took months. It really is just a matter of them signing 1 piece of paper though. It's worth checking to see if they are still operating under a different name or if another company bought over their portfolio. My advice would be to put a complaint in to the Ulster Bank and demand they find some way for you to still be able to move and to get your solicitor to research the old builders. Good luck, hope it works out for you.0
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Hi no I'm no further on Ulster Bank have wiped their hands off it saying it is between me and the builder, but he no longer is in business and cannot sign anything off. They told me to get my solicitor to sort it out.
I will be putting in an official complaint against the bank as they should have made me aware when the builders folded back in 2014. I was only told about this charge when my solicitor asked for the deeds. I have already asked for extras to be added to the new property I am to purchase before I found out about this and if I get charged the bank will be footing the bill. I'm about to loose the buyer of my own property as it will affect her getting a mortgage for it.
The solicitor seems to be taking their time and it's causing me great stress which I don't need.
I'm glad you got yours sorted out eventually . I'm sure there are plenty of other people affected with this mess the bank created.0 -
It baffles me why folk still bank with the Ulster Bank, given the many issues in recent years. #oncebitten0
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Hi Claire, I know it has been a year since your last post but just wondering if you got sorted and how you went about it eventually? We are going to be in a similar scenario so any advice welcome.0
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Hi Eoiyflem
Just replying to your message.
I got sorted out eventually had to change solicitors to the builders solicitor who knew ins and outs of it all!
The bank didn’t want to know said it was left for me to deal with.
My solicitor said he written to them 4 years ago to tell them what had happened and they obviously ignored this.
I eventually got moved in September last year to the house I originally wanted.
I had to pay back the 2nd charged out of my own money to the crown solicitors office to release the 2nd charge.
It was a nightmare but got there eventually with the help of a good solicitor.
Did you get any further with yours?0 -
Hi Claire - thanks for that. I have sent you a PM if you pick it up I'd really appreciate your thoughts.
Cheers
E0 -
Hi Claire, could I ask the name of your solicitor please? Thanks0
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