Mortgage Lender
Tax Planning and Financial

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15 Posts
11 years ago
I took out a mortgage deal with one lender at 70% LTV in 2007 for 6no properties, with a five year review.
The five years was up last October & the bank insisted that the properties were re-valued (at my cost) due to the decline in house prices.
Unsurprisingly, the houses are not valued at the same amount as they were five years ago & the LTV is now c.80%.
The bank are now telling me that I am in breach of the original agreement due to the increased LTV)& are now wanting me to pay a one off £70k to reduce the debt, or pay an additional £2k per month over & above my mortgage payments.
I do have other properties with different lenders, and to say this extra £2k per month would seriously impact the businness is a gross understatement.
I would also point out that have never ever either missed or been late with any repayments whatsoever.
All houses are fully tenanted & well maintained.
I enclose an extract from a recent email from them to my broker:

Whilst we are sympathetic to Mr & Mrs **** situation, the bank has been more than accommodating, particularly given the facility formally expired in October.
However, we can propose the following terms which under the circumstances, we feel are very fair. It must be noted that the conditions below are not negotiable and agreement is required to all points for the renewal to be sanctioned by our Credit Committee.
• The loan capital to be reduced by £2,000 per month (deducted from the account on a monthly basis), in addition to quarterly debit interest payable. This will equate to £72,000 over three years and will not only bring the facility back into our required parameters but from the clients' personal balance sheet perspective, will also reduce their liabilities
• The loan to be renewed for a period of three years
We must reiterate that the Bank can only renew under the terms and conditions outlined above. If this is not acceptable, regrettably the Bank will have no alternative other than to issue a notice to close the account and Mr & Mrs *** will be obliged to refinance the facility elsewhere.

Yet another example of an unsupportive bank bleeding a small business dry.
My question is, can the bank force me to move the mortgages elsewhere? If so, how?

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