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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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When you have entered into a capital and repayment agreement

Resolved Question:

When you have entered into a capital and repayment agreement mortgage commitment, and you discover that the payments are becoming a little difficult, can the lender refuse to allow you to pay "interest only"? In other words can the borrower INSIST that the mortgage is paid interest only despite the initial structure bing capital and repayment?
Submitted: 3 years ago.
Category: Property Law
Expert:  Ash replied 3 years ago.
Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

The lender can refuse yes.

However if they are then going to seek possession they must comply with the pre-action protocol.

Please see:

http://www.justice.gov.uk/courts/procedure-rules/civil/protocol/prot_mha

This states:

"The lender must consider a reasonable request from the borrower to change the date of regular payment (within the same payment period) or the method by which payment is made. The lender must either agree to such a request or, where it refuses such a request, it must, within a reasonable period of time, give the borrower a written explanation of its reasons for the refusal."

Can I clarify anything for you about this today please?

Alex

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