Default on Mortgage payment

[scrumperto]

Is it true that if you are late with a monthly mortgage payment and your provider has marked you down as defaulting for one month the big high street lenders (ie, Halifax, Abbey etc) will not be prepared to offer you a 2nd mortgage if you wanted one? My payment was late by 5 days and after 8 years I now have a default on my record - really frustrating! Thanks anyone, Regards,

[Catso]

I think the best answer would be 'it depends'.

Every company will have their own policy on this. Their decision will not only be based upon this, but lots of other factors also.

I can tell you that my wife, while in her previous marriage, was refused a mortgage by a small independent company on the grounds of defaulting whilst with another company. She had done a lot worse than just being 5 days late though!

[scrumperto]

Thanks Catso - appreciate it.

Slightly separately, even though my flat is rented out at the moment I want to raise equity from it in order to buy a new flat with my husband - someone has told me that as the flat is rented out (and tenants are in) I can't change the terms of my mortgage - would you know anythign abou this?

Thanks again, really helpful,

Regards,

[Catso]

Again, it depends upon your lender and your existing mortgage. The terms of your mortgage will tell you what you can and can't do.

Shouldn't you be asking your lender all this?

However, it sounds unlikely to me that you can't change mortgages just because you're renting the property out.

Unless your lenders aren't aware that you are renting it - then you'd have a pile of trouble if you came to change.

[scrumperto]

Thanks, I informed lender I would be renting property out - they didnt change the mortage to buy to let but agreed I could rent out for a period. The only reason I haven't spoken to mortgage company to ask them about remortgaging etc is because they told me I couldn't... but I think I'll call them and find out what they say.

Thanks again for your advice,

Appreciated, Regards,

[WoWo]

At the end of the day (as long as their is no fraud involved) the mortage company can't stop you changing the mortgage. They themselves might not let you remortgage or there may be high penalty charges if you do but you can switch anytime you fancy.