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Breach of mortgage terms

(10 Posts)
Debunked Tue 25-Apr-17 22:37:11

Does anyone have any experience of what happens if you are found in breach of your mortgage terms? Specifically the one not to alter or extend the property without consent?confused

MooseBeTimeForSnow Tue 25-Apr-17 22:56:22

It should be set out in your contract. I believe they could seek to repossess. Why did you not think to ask them? Presumably the extension work isn't being funded by a remortgage?

MooseBeTimeForSnow Tue 25-Apr-17 22:56:52

By remortgage I mean additional borrowing against the property?

MooseBeTimeForSnow Tue 25-Apr-17 23:00:36

They could issue a fine, increase your interest rate or ask for the mortgage to be paid up immediately.

Debunked Wed 26-Apr-17 00:04:13

Thanks. We did ask, months ago, and they seemed positive, then they finally replied yesterday that they need evidence of funding to pay for the build, which we don't have because we are remortgaging to pay for part of the build. So as long as the remortgage happens there will just be five weeks when we are still with old lender but in breach of their terms. Practically speaking I think they're not likely to do anything given it's such a short time frame but grateful for other views if anyone has experience!

GardenGeek Wed 26-Apr-17 00:07:01

Surely the remortgage is your proof of funds?

Bearbehind Wed 26-Apr-17 07:57:03

So as long as the remortgage happens there will just be five weeks when we are still with old lender but in breach of their terms.

I'd be more worried about doing the work before you have the money than the current, to be previous lenders t&c's for 5 weeks.

Can't you just start the work when the new mortgage is in place and you have the funds?

Debunked Wed 26-Apr-17 09:47:02

Garden yes that's what I would've thought but I suppose until it actually goes through there is a possibility something scuppers it. I'm happy to take that risk.

Bear this was the best time for us and our builder - it's been carefully planned so we are away for the worst bit! If we postpone now we will lose our builder and have to rearrange doors/windows/kitchen delivery blush

Bearbehind Wed 26-Apr-17 12:56:49

If that's the case then there's no point in worrying about breach of terms as you're going to do it anyway.

Chances are nothing will go wrong but there are the odd instances where houses subside when excavations start etc.

GardenGeek Wed 26-Apr-17 21:50:28

Good luck with it!

Ahh the world of home owning where all we dream of is beautiful bifold doors grin

Just buying first home and already thinking how will I get these when we can afford

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