Remortgage/secured loan

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abbiesmum2003
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by abbiesmum2003 » Mon Jan 29, 2018 7:34 pm
We are just going through the equity release work and wanted your advice.
Foggy do you recall the issues weve had before about remortgage amd secured loan??
I distinctly recall Mel writing 'remortgage' into her T&Cs and stating a secured loan was different and not the same thing.
Im really unsure about agreeing to a SL with low repayments (to meet the cap requirements) but having a ridiculous term (possibly the duration outstanding onnour mortgage) and a high interest rate thus repaying a hell of a lot of money over a ridiculous term just to meet the requirements.
Our T&Cs only state remortgage but company is saying Remortgage amd secured loan are technically the same and come under same umbrella.
Has anyone got any words of wisdom?
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Foggy
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by Foggy » Mon Jan 29, 2018 7:49 pm
Mel actually took advice from a barrister whose opinion was that a remortgage and a secured loan are NOT the same thing. Indeed, if they were, why did the IVA Forum (the ones who write the Protocol, not us) deem it necessary to specifically include "secured loan" in the revised 2014 protocol ?

A further clue is in the name ... REmortgage i.e "to mortgage again" as opposed to secured loan, being a second or third charge secured on a property.
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Foggy
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by Foggy » Mon Jan 29, 2018 7:51 pm
I might add that CF are getting a bit of a rep for giving duff advice until challenged.

A remortgage is a secured loan, but a secured loan is not a remortgage .... just as
An elephant is a mammal, but a mammal isn't always an elephant.
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abbiesmum2003
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by abbiesmum2003 » Mon Jan 29, 2018 8:14 pm
Thanks foggy! I knew youd know! lol!
I have challenged a company about a RM/SL and being told they are the same so Im going to find email from mel, im sure i have one somewhere from years past!
Just want to be sure about what we are doing.
And not getting pulled into something thats not actually wjat we originally agreed too
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recovering
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by recovering » Tue Jan 30, 2018 12:03 am
Abbiesmum I think I have screenshots of her statements if you need them, but when I was refererred to the secured loan company I declined the offer and was referred back to CF who accepted that with no issues
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luluj
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by luluj » Tue Jan 30, 2018 1:52 am
They are two different things - stand your ground abbiesmum !
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kallis3
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by kallis3 » Tue Jan 30, 2018 9:16 am
Agree - you do need to stand your ground. Don't be browbeaten!
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abbiesmum2003
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by abbiesmum2003 » Thu Feb 01, 2018 10:45 pm
Thanks everyone!
I knew you guys would be about to help and recall similar conversations!
I will see what they come back with.
Also concerned they are using online valuations. Ive queried this and stated my T&Cs state I have obtain valuations from independent agents which theyre telling me isnt how they work!
Roll on next week for follow up phone call!
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Foggy
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by Foggy » Fri Feb 02, 2018 7:52 am
abbiesmum2003 wrote:
Thanks everyone!
I knew you guys would be about to help and recall similar conversations!
I will see what they come back with.
Also concerned they are using online valuations. Ive queried this and stated my T&Cs state I have obtain valuations from independent agents which theyre telling me isnt how they work!
Roll on next week for follow up phone call!


How they work isn't relevant -- it's what it says in the proposal that is important. Most proposals put the onus on carrying out the valuation exercise on the debtor, not the IP .... mind you, sometimes online valuations work in your favour.
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kallis3
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by kallis3 » Fri Feb 02, 2018 10:40 am
Must admit I've always found online valuations to be quite high - mine was a 'drive by' which does not take into account the state of repair of the interior, same with online ones. We got a local one in and said we were relocating. It was free and we got it in writing.
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Foggy
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by Foggy » Fri Feb 02, 2018 10:55 am
kallis3 wrote:
Must admit I've always found online valuations to be quite high - mine was a 'drive by' which does not take into account the state of repair of the interior, same with online ones. We got a local one in and said we were relocating. It was free and we got it in writing.


They usually are -- as you say, it depends on the state of the property as well as the local market. In many towns property prices can vary greatly just because of the postcode and an averaged area online valuation will not usually account for these trends in valuation ---- so, if you are in a relatively expensive street and the next street down in less expensive, you could get a lower valuation --- but, as you say --- it usually works the wrong way around !!
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