Unfavourable mortgage terms and conditions

by Readers Question

13:46 PM, 6th June 2016
About 5 years ago

Unfavourable mortgage terms and conditions

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Unfavourable mortgage terms and conditions

During the last few weeks I have been in the process of arranging one remortgage and one mortgage for my BTL that comes of a fixed rate and I have discovered that some of the lenders have terms that are simply unfair. unfair

The main ones are that they can at their will ask for the loan to be repaid whenever they wish during the term of the loan or they can if they wish revert to the original LTV amounts to when the loan was started (assuming prices have dropped on properties) or they can ask for the loan to be changed to a repayment loan if it was interest only. The lenders whose terms have these clauses are Godiva and Birmingham midshires in their 5 year fixed rates.

What my question was is that something all lenders are now doing or can anyone point me in the direction of a lender that does not have these 3 horrible clauses.

My broker (who are a main stream large BTL broker) is not very helpful as he feels that these terms are never going to be used by the lender and that I should worry less and just ignore them as all of his clients do just that.

Any advice would be greatly appreciated.

Many thanks

Peter

Comments

Mark Alexander

15:02 PM, 8th June 2016
About 5 years ago

Reply to the comment left by "Peter Johnson" at "08/06/2016 - 14:48":

Hi Peter

The Court ruling on this is linked below
.

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