bank called in mortgages that were not in

alex71

just wondering has any one come across this before? my bank, one which is leaving the country has called in my mortgage despite there being no arrears or missed payments. this was a buy to let mortgage and was operating according to its terms and conditions and there were no arrears or missed payments or late payments. the bank has since appointed a receiver to the property and issued legal proceedings against me which are in progress, appreciate any comments on whether this is normal?

ANXIOUS

Did it happen to be interest only and on a tracker mortgage?

Henry Ford III

Was it repayable on demand?

ANXIOUS

Henry Ford III wrote: »

Was it repayable on demand?

I'm fairly sure all mortgages, loans, credit cards and over drafts have that included.

nlgbbbblth

Overdrafts - on demand.

Loans - committed or demand [more often committed now]

I would have thought that an event of default would have to occur before they could call up your mortgage.

Your mortgage facility letter should outline what constitutes an event of default.

GerardKeating

nlgbbbblth wrote: »

Overdrafts - on demand.

Loans - committed or demand [more often committed now]

I would have thought that an event of default would have to occur before they could call up your mortgage.

Your mortgage facility letter should outline what constitutes an event of default.

Some mortgages (mainly commercial now) have clauses that allow them to be called in, if the property is in negative equity.

nlgbbbblth

GerardKeating wrote: »

Some mortgages (mainly commercial now) have clauses that allow them to be called in, if the property is in negative equity.

A material adverse change clause. That could be it...

alex71

the loan was a two year facility, interest only and a tracker. around 14 months of the loan term had expired. I have checked the terms and conditions and no event of default had occurred!

Henry Ford III

ANXIOUS wrote: »

I'm fairly sure all mortgages, loans, credit cards and over drafts have that included.

That's why I asked. If it's included the lender can call it in anytime, and if the borrower isn't in a position to repay there and then, they need to refinance it.

Quorom

alex71,


I have heard of this before with regard to Danske Bank. In their haste to leave the Irish marketplace, errors were made. Get the loan agreement and the debenture ( mortgage deed ) from the bank. The loan agreement will stipulate that although the debenture reads that we can call in our security at any time, this clause will not be utilised, unless there is an event of default as listed in the loan agreement. This clause in your loan agreement is your legal shield from the bank behaving in the manner indicated above. The simple answer to your question is, no, the bank cannot act in this manner and to do so is a fundamental breach of contract, to which you are entitled to damages. Keep us updated

Toots

Thread is over a year old, please don't drag up old threads.