Lender recalls funds on a mortgage

[Unregistered]

good morning all,

I may have read this wrong but...

i read on another forum that a lender (bank) is able to send out notice to recall funds back - this could be years into your mortgage.

is this legal?

[MIKE770]

Re: Lender recalls funds on a mortgage

you sure there is not a charge on the account/?

[jaguarsuk]

Re: Lender recalls funds on a mortgage

Are you sure that they are not terminating the agreement and "calling in the debt?"

Recalls of funds can't happen after five working days without the payee account holders consent.

[LilPretty]

Re: Lender recalls funds on a mortgage

Are you sure that they are not terminating the agreement and "calling in the debt?"

Recalls of funds can't happen after five working days without the payee account holders consent.

Yes - i believe this is what the writer was referring to - terminating the agreement and calling in the debt.

you are correct.

I was read its very rarely done but it is possible and just wanted to know more information about it

[jaguarsuk]

Re: Lender recalls funds on a mortgage

I used to work for bank, I handled giving Mortgages and then moved on to unsecured debt management. It's extremely rare for a bank to call in unsecured when the client is paying. I would imagine it's even more rare with Mortgages.

A lot is dependant on the terms, older agreements tend to be restrictive to banks calling in loans of any sort and as such they made sure they adjusted their terms accordingly. Whether they can legally terminate as with all contracts lies in the terms.