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April 26, 2008
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Right.

This is one of the things on my mind at the moment. Maybe one of you lurkers is a mortgage expert or a solicitor or works in conveyancing or something and will be able to help me out.

I approached a lender for a mortgage in November. They have offered a mortgage for a monthly repayment of £400 a month. £160 less than I’m paying now.

I was ecstatic to say the least. At a time where I have a wedding to pay for and I’m the sole earner practically for a family of four… saving £160 a month is a major deal.

This coupled with the fact that I’ve had a pay rise … I was pretty much looking forward to enjoying my extra spare income on a monthly basis.

So – my lender – let’s call them ABC. They have produced an offer. This was subject to a survey which was carried out and the house was valued. However, their anally retentive surveyor spotted cracks in our downstairs wall that have been there for hmmmm… ever (have never changed and are less than hairline… it was so ridiculous) and decided they required an independent super dooper qualified in-some-extra especially-expensive-way-surveyor to come round and say they were OK as well as him.

K?

Right. How much will this cost me? My survey had already cost me £285 in the first place.

£334 including VAT.

Great.

This was February.

So I organised that. Paid for it.

The ABC people are satisfied and produced an offer. At this point… the loan I have with LMN is secured on my house . ABC have known about this loan from the get-go but apparently data protection prevents them from saying ANYthing whatsoever to my solicitors. Well… their solicitors. Let’s call them …. BLUE (otherwise the random letters will just get confusing…) right?

We have to wait for them to discover it through their own checks.

So. BLUE contact LMN and ask them to accept the deed of postponement from ABC. As far as I understand it both companies would normally want to be the 1st Legal Charge on the funds should I ever default on the mortgage. Both companies, ABC and LMN are fine to agree that ABC should and can be the first legal charge but… BUT. LMN will only use their terms and condtions paperwork for said postponement and ABC argue that LMN paperwork will not offer them the same level of protection as their own deed of postponement.

K?

So. I have never defaulted on anything. Not credit card. Certainly not mortgage. Not loan. I have had the loan for a year now… anyone who’s been reading this will know I got this loan last year… and I have paid by direct debit for every payment so far. It’s never bounced.. gone unpaid or been late. Nor has mortgage payment that I have ever been responsible for.

I asked if this counted for anything?

No.

OK.

I asked if the fact the mortgage payment is going down by £160 per month… £1920 per year and the fact that I’ve had a 4k pay increase… does that count?

Probably not.

BLUE think that ABC are such cautious lenders that they will withdraw their offer.

Now I got a 40 year deal with them… the highest I saw as everyone else was 35 years top. I desperately need the reduction in monthly repayment BECAUSE we’re trying to pay for the wedding. The wedding is requiring credit card payments… which I can’t afford unless I have the monthly reduction in mortgage payments.

K?

Yeah?

K.

So. BLUE want ABC to be the first legal charge. LMN are happy for ABC to be the first legal charge but only with their paperwork. BLUE emailed me and said LMN are sending you stuff through the post… do whatever they want so we don’t get held up.

So today? LMN want £125 to create a deed of postponement for them. BUT read this…

Ms Nut Tree,

Further to our telephone conversation I’m happy to provide further clarity. As discussed it is a requirement of ABC that they hold a first charge over your property, in order to move LMN into second place and put ABC as the first charge holder, we require a “deed of postponement”.

Unfortunately LMN are reluctant to use our deed and instead provide their own which does not give ABC the level of protection they require. As a result, if we cannot obtain a deed on our standard terms then ABC will not proceed with the mortgage.

I will keep you up-to-date with all developments and as soon as I know anything I will be in contact. For the meantime please complete the forms that LMN have or will be sending you in order to get the ball rolling.

BLUE’s

I have already paid £175 for BLUE’s deed of postponement.

Doesn’t this sound like my deed of postponement from LMN will be pointless? Desn’t this then mean that sending them a cheque for £125 is in fact.. £125 that I’ll never see again for absolutely nothing???

What do I do? Please could someone out there be a solicitor or SOMETHING and help me? I am lost and I think all of this is about to go tits up anyway. Is there any point in me wasting another chunk of money for a mortgage that is going to be withdrawn anyway?

HELP!! 😥

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2 Comments leave one →
  1. Merry permalink
    April 28, 2008 10:01 am

    I’ve got absolutely no idea at all…. i think there is a convey…um..er..thing… at work but i haven’t spoken to them. Not in till Wed but can try to find them.

    Wish i could help but never got involved with that side of it… will try to think if i know anyone.

  2. Suburban Mum permalink
    April 28, 2008 1:46 pm

    I have absolutely no idea either.

    Most helpful comment of the year award goes to…

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