Mortgage ltv of original mortgage company

[ronnie11]

Hi All,

 

Right I'm in a bit of a fix at the moment........I'm having to sell my house to pay of part of a debt that was incurred by means of 2nd charge on my property back a few years years ago when my business failed (now they've come knocking so to speak). Well my problem is (or question) is in regard to portability and original terms of mortgage.

My original mortgage was with GMAC and in their paperwork in states sec 8. 'You may be able to transfer this mortgage product to a new property without incurring any early repayment charge. This option is available subject to meeting certain criteria and their approval'.

 

Now then carrying on from that in the original mortgage offer details that I signed and agreed with GMAC it says under sec 4 Description of this mortgage -

 

This mortgage is provided by GMAC- RFC ltd.

(then there's various bits about the rate etc and Bank Of Engalnd base rate etc etc

 

But at the end of sec 4 it says

'The maximum loan available on this product is 85% of the value of your property subject to conditions'.

 

So my question is shouldn't my new mortgage company that now hold my mortgage still give me 85% loan to value......rather than the 52% they're now offering??

 

GMAC sold over to Oakwood Homeloans who subsequently sold over to Engage Credit Ltd...but my original terms etc should apply shouldn't they??

 

And as in GMAC paperwork they say the product is transferable...and sec4 of original mortgage paperwork (from GMAC) it says loan to value of this product is 85%

 

 

 

Surely Engage can't now pick a figure totally at random to suit them when I'm supposed to have same terms conditions of original mortgage..........???

 

 

I'm not in arrears and even with a LTV of 85% I'd still be reducing my mortgage by £20k ...surely I've got some argument against this??

 

Any help/advice welcomed.

Edited January 16, 2012 by ronnie11
Opps spelling/corrected...that'll teach me not to proof read

[Sand-Dancer0191]

My opinion is this....

Your mortgage is as per your original T & C's.

However to remortgage through Engage would be under a new contract with their T&C's,their charges and fee's etc