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Hi All,
My mortgage lender will not approve a second charge loan. I have applied for a second charge loan with Spring finance for £24k.
I need this loan because I have a tomlin order from a trustee relating to a family members bankruptcy that I want to settle with a final payment to be made of £74k.
I am selling a shared ownership property that I purchased 10 years ago and I will receive 50k for my share when the sale is complete. This will still leave me £24k short and I have applied for a second charge loan as I need the money urgently. My credit file is really bad so I found it difficult to get a lender but a broker has found me Spring finance and I have had a decision in principle agreed. The house that I live in at the moment has 3 bedrooms so I have rented out the other 2 rooms to give me lodger income that will help me with the monthly repayments. The repayments are £300 per month and fit within my budget in terms of my salary and all my outgoings. Spring Finance have even confirmed that they will pay the money directly to the trustee on completion of the house sale so the trustee will receive all the money on the same day. During my application I had to fill out an income and expenditure form for Redstone mortgages but I thought nothing of it and just thought this was just a procedure.
Everything seemed to be going fine with my application until my broker informed me that my mortgage lender is refusing to give consent for a second charge to be registered against my property.
I could not believe it! I have no arrears on my mortgage and I have been paying it for 7 years now. My broker has told me that as Redstone Mortgages is a sub prime lender it is very difficult to get consent from them.
The reasons Redstone gave for refusal are:
1. I have been going overdrawn on my bank account.
2. The proposed loan is for a third party which has nothing to do with them.
I am in total shock. I have been going overdrawn on my account at times as I have had so much going out with tenant voids and sales costs from the property I am selling. But in the last 3 months I have not been overdrawn.
The loan has everything to do with them. At the moment the trustee has a restriction on my property for the £74k that is owed. Surely they are aware of this restriction. If I do not pay the tomlin order by the due date the trustee could force a repossession order. I really need them to approve the second charge loan from Spring Finance.
My broker has confirmed that Redstone are willing to reconsider but I dont know what they want to approve.
Could someone please let me know what I can do?
Mike.
My mortgage lender will not approve a second charge loan. I have applied for a second charge loan with Spring finance for £24k.
I need this loan because I have a tomlin order from a trustee relating to a family members bankruptcy that I want to settle with a final payment to be made of £74k.
I am selling a shared ownership property that I purchased 10 years ago and I will receive 50k for my share when the sale is complete. This will still leave me £24k short and I have applied for a second charge loan as I need the money urgently. My credit file is really bad so I found it difficult to get a lender but a broker has found me Spring finance and I have had a decision in principle agreed. The house that I live in at the moment has 3 bedrooms so I have rented out the other 2 rooms to give me lodger income that will help me with the monthly repayments. The repayments are £300 per month and fit within my budget in terms of my salary and all my outgoings. Spring Finance have even confirmed that they will pay the money directly to the trustee on completion of the house sale so the trustee will receive all the money on the same day. During my application I had to fill out an income and expenditure form for Redstone mortgages but I thought nothing of it and just thought this was just a procedure.
Everything seemed to be going fine with my application until my broker informed me that my mortgage lender is refusing to give consent for a second charge to be registered against my property.
I could not believe it! I have no arrears on my mortgage and I have been paying it for 7 years now. My broker has told me that as Redstone Mortgages is a sub prime lender it is very difficult to get consent from them.
The reasons Redstone gave for refusal are:
1. I have been going overdrawn on my bank account.
2. The proposed loan is for a third party which has nothing to do with them.
I am in total shock. I have been going overdrawn on my account at times as I have had so much going out with tenant voids and sales costs from the property I am selling. But in the last 3 months I have not been overdrawn.
The loan has everything to do with them. At the moment the trustee has a restriction on my property for the £74k that is owed. Surely they are aware of this restriction. If I do not pay the tomlin order by the due date the trustee could force a repossession order. I really need them to approve the second charge loan from Spring Finance.
My broker has confirmed that Redstone are willing to reconsider but I dont know what they want to approve.
Could someone please let me know what I can do?
Mike.
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