I know this is a common issue causing grief at mortgage time but I was wondering if anyone else had a similar experience to his and whether the bank is correct or being unreasonable.
I have a mortage with a corresponding mortgage protection in place with different provide all well and good.
Applied for equity relase to purchase property abroad. This has been dragging for some time now and I now need the funds urgently. Originally to save time I assignment a normal level life policy to the equity release with the policy vastly exceding the equity release. I plan to get a proper policy in place once the mortgage is issue and I have some time. Originally a new polciy may not have been in place in the time I neede the cash. 2 weeks later it seems that I would have had a new policy in place with the amount of hassle with the equity relase.
Anyway now I get a call (everyday they call looking for something else) to say that the policy only runs to 2031 while the mortage runs to 2034. My arguement is that this should be sufficient. The relase was for 75K over 28 years so at 3 years to go there would be only approx 10K outstanding which with inflation would be only a small amount.
Bank refuse to give relase until I got a new policy in place until 2034 which at this stage is not possible due to the time that this will take or 2 reduce the term of the morgage to 25 years which at this stage was the only option.
While reducing the mortage term does not cause me too much hassle I just think that the Bank was arguing over a futile issue that doesn't add anything material to the contract while pisses me of greatly to the extent that I want to switch mortgage provider when things are sorted out.
If this makes sense does anyone have any view on this?
I have a mortage with a corresponding mortgage protection in place with different provide all well and good.
Applied for equity relase to purchase property abroad. This has been dragging for some time now and I now need the funds urgently. Originally to save time I assignment a normal level life policy to the equity release with the policy vastly exceding the equity release. I plan to get a proper policy in place once the mortgage is issue and I have some time. Originally a new polciy may not have been in place in the time I neede the cash. 2 weeks later it seems that I would have had a new policy in place with the amount of hassle with the equity relase.
Anyway now I get a call (everyday they call looking for something else) to say that the policy only runs to 2031 while the mortage runs to 2034. My arguement is that this should be sufficient. The relase was for 75K over 28 years so at 3 years to go there would be only approx 10K outstanding which with inflation would be only a small amount.
Bank refuse to give relase until I got a new policy in place until 2034 which at this stage is not possible due to the time that this will take or 2 reduce the term of the morgage to 25 years which at this stage was the only option.
While reducing the mortage term does not cause me too much hassle I just think that the Bank was arguing over a futile issue that doesn't add anything material to the contract while pisses me of greatly to the extent that I want to switch mortgage provider when things are sorted out.
If this makes sense does anyone have any view on this?