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lancashire mortgage company

Last post Wed, Jan 26 2011, 1:15 PM by MortgageSpecialist. 8 replies.
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  •  Wed, Jan 26 2011, 1:15 PM

    Re: lancashire mortgage company

    Zeb:

    tt lady: Edit - see Zeb got there first !

    Damn, that makes a change. I am always 1 minute behind Maxsteam or Exterminator or Jalexa

    Fortunately, your advice is normally good and with the value of experience. You obviously know your market well. People like maxsteam sadly only have anecdotal evidence and "I heard somewhere that...." to go on and try to pass it off as being someone who knows what they are talking about.

    • Post Points: 5
  •  Wed, Jan 26 2011, 10:32 AM

    Re: lancashire mortgage company

    tt lady: Edit - see Zeb got there first !

    Damn, that makes a change. I am always 1 minute behind Maxsteam or Exterminator or Jalexa

    • Post Points: 20
  •  Wed, Jan 26 2011, 8:57 AM

    Re: lancashire mortgage company

    The term first charge means that the debt is the first to be secured against a property. So it is another name for a number of other types of loan - a normal residential mortgage, buy to let mortgage or even a secured loan if there is no other debt secured against the property. If you already had a mortgage and then took out a secured loan then the mortgage would be the first charge (and the first to be paid off when the house was sold) and the secured loan the second charge.

    Edit - see Zeb got there first !

    • Post Points: 20
  •  Wed, Jan 26 2011, 8:57 AM

    Re: lancashire mortgage company

    If a loan is taken out against a property there is a legal charge placed onto the property. The charge is the pecking order in which lenders get paid if the house is repossessed and sold. As you have no mortgage on the property any charge that is put onto it will be a First Charge, if you went on a did further borrowing this would then go as a second charge etc.

    If you have informed the lender that you are going to let the property out then he will have arranged (or should have) a Buy to Let mortgage for you. A secured loan is often something that is placed onto a property as a second charge on a property (payable after the mortgage which would always be first charge)

    You also have to understand the difference between the 2 companies also. Nat West are a High Street lender who deal with customers who have good credit. This is the area of business that all High Street banks offer in and it is very rare that they will touch anyone who had even slightly adverse credit.

    You have come out of an IVA which is just about as serious a credit problem as you can get for an individual, in my opinion an IVA can be more damaging than a bankruptcy for the time it will take to start gaining meaningful credit terms again. This is the position you are in. It is quite possible that for the simple fact that you have held an IVA in the past that Nat West may never allow you to borrow money from them again. While after 6 years the IVA will drop of your credit file most lenders will ask if you have ever been made bankrupt or held an IVA and you are legally obliged to declare it and to not do so can be classed as fruadulent. There are several High Street banks that have this policy. For the next few years you will find that the only lenders that will entertain you will be lenders that charge high fees and high interest rates for lending money to you. This will slowly improve though

    Before accepting the First Charge loan I would still go and see a mortgage broker to see if you have access to any other lenders as it would be most likely that if you are accepted by anyone else it will be at a lower cost on fees and interest rates

    • Post Points: 5
  •  Wed, Jan 26 2011, 7:25 AM

    Re: lancashire mortgage company

    Yes sorry you are right it is the corporation not company!!!they have offered me 15000 on a first charge over 15 years for home improvements ,I am unsure what to do now??!!(well actually I think its a first charge he did mention something about a buy to let as I am planning to let the house out ,I will read the documents when they arrive and see what the deal was)I am a bit confused as to what type of finance I need ie buy to let-first charge -mortgage- secured loan??I explained to him my circumstances and that I had repaid an IVA early and that the house had no debt or finance on it.Oh I am so confused now as what to do,Nat west wont touch me(my bank) even though I have no debt with them only an agreed overdraft.
    • Post Points: 35
  •  Tue, Jan 25 2011, 6:43 PM

    Re: lancashire mortgage company

    If I rememebr correctly Rhiload will fit into this catagory which is why I mentioned Lancashire Mortgage Corporation instead of company (which I couldn't find). I don't know if they are connected but they run on very similar lines to Cheshire Mortgage Corporation which again is adverse credit and complex cases.

    Either way, he will pay large fees for his mortgage if I have summised his circumstances correctly.

    Rhiload,

    Before you deal with LMC I would advise at least speaking to a mortgage adviser first before approaching a comnpany like LMC as you will pay large fees (several hundred to possibly thousands) to have your case processed but the chances are you will get an accept with them. I would hate you to have to pay these fees if your credit is not as bad as you have made out. Other light adverse lenders will have better rates and fees than LMC or CMC and a good mortgage broker will be able to point you to the right lender for your circumstances.

    • Post Points: 20
  •  Tue, Jan 25 2011, 6:13 PM

    Re: lancashire mortgage company

    If you mean Lancashire Mortgage Corporation, they historically have dealt with unusual circumstances, people with adverse credit, second charges and bridging finance, all of which come at a premium.

    If your case is straightforward and you have no bad history, it would seem likely that there are better options.

    • Post Points: 20
  •  Tue, Jan 25 2011, 5:53 PM

    Re: lancashire mortgage company

    Are they a lender or a broker?

    There is no reference for them on the internet and no FSA listing for them on tyhe FSA register which would worry me.

    There is a Lancashire Mortgage Corperation

    • Post Points: 5
  •  Tue, Jan 25 2011, 5:25 PM

    lancashire mortgage company

    Anyone has any dealings with this company?I was thinking of getting a first charge loan with them.

    Thanks.

    • Post Points: 35