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Michael Holly
Michael Holly, Solicitor
Category: Law
Satisfied Customers: 6915
Experience:  I have 20 years of experience as a solicitor in litigation and other areas
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I have a mortgage with a lender. But the property was

Resolved Question:

Hi,
I have a mortgage with a lender. But the property was sold with a shortfall during the recession. After years of them not listening we finally came to an agreement that the loan could be repaid at a fixed monthly amount 0% interest. This has been in place for many years now - no problems. Today I received a letter saying the mortgage had been transferred to a new lender. Obviously I am concerned they might try and 'alter' the original arrangement. Can they?. I wish things to be left exactly as they are. Does the new lender by law legally inherit my 'special' terms and so cannot enforce others? (such as the 'terms' of the original mortgage with the previous lender). Thanks in advance.
Submitted: 1 year ago.
Category: Law
Expert:  Michael Holly replied 1 year ago.
The relevant agreement here is not the mortgage but the agreement that you pay in monthly instalments.That agreement , like any other contract, cannot be unilaterally varied by one side, a contract can only be varied if either both sides consent or the terms of the contract are such as to permit variation.Here the rate and payment frequency is fixed in the agreement.I hope this helps.If there are any further points please reply I will be happy to respond.Best wishesMichael
Customer: replied 1 year ago.

Hi,

Thank you for your answer; but I'm somewhat confused.

My monthly payments and interest rate at 0% are not part of my mortgage condition. It's an arrangement I came to after many years of arguing (also lies and fraud by the lender).

My concern is this arrangement will not be carried over to the new lender and indeed the new lender will simply abide by the mortgage terms and conditions they inherited ignoring my setup with the old lender.

I hope you can clarify your answer. Thanks

Expert:  Michael Holly replied 1 year ago.
Sorry I did not explain this so well.The original party that you contracted with, the mortgage company, agreed a variation.The new company is obliged to accept that varied agreement, they cannot simply go back to the mortgage terms. The variation binds them too.I hope this clearer and apologise for any confusion.Michael
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