IS MY MORTGAGE COMPANY ABLE TO DO THIS?
by Mortgage Rates on Tuesday, September 14th, 2010 | 2 Comments
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Sounds like you borrowed more than the actual purchase price to cover the closing cost but you should have someone help you to draft this question better. It doesn’t quite make sense and you need to give a bit more detail.
Suggestion:
State what state or country you are in
State the name of the lender for both first and the second (if it’s different)
8% on what? your rate jumps to 8% or you will owe more by 8%? are we talking about the second or the first or both?
Okay, thanks for the clarification. I’m not too familiar with Lending laws in the UK but I may be able to give you a little help here.
Lending laws for mortgages are generally stricter and comes with more restrictions for the lender. Unsecured loans are a different ballgame and lenders have far less restrictions in terms of what conditions they can impose on the borrower. Which is one of the reasons why it’s unsecured and not a second mortgage.
The reason you borrowed so much was to pay for the closing cost. Since you went through a bank (even though your government took it over) everything is probably legal and you may have little recourse………I’m sorry to say.
As stated previously, i’m unfamiliar with UK laws so please check with professionals in your country.
They are able to do it if YOU signed documents which clearly spell out the terms of your agreement. Usually homeowners payoff the mortgage and equity line when they sell the home, the increase in interest rate is incentive to do so. Check your loan documents . . . they very well may be able to do so.