How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill, Barrister
Category: Law
Satisfied Customers: 10974
Experience:  Barrister 17 years experience
Type Your Law Question Here...
Buachaill is online now

If I take a second charge on a property against a private loan,

This answer was rated:

If I take a second charge on a property against a private loan, does the borrower have to inform the first mortgage provider?
1. In these circumstances, there is no obligation on the borrower to inform the first chargeholder unless there is a term in their mortgage that the taking of a second charge has to be notified to the first mortgage provider. So the borrower should check the terms of the mortgage agreement see if there is this notification requirement. There is no universal practice. However, such notification clauses are sometimes there. The reason why they are not universally present is the fact that the first mortgage holder always finds out once the second charge is registered in the Land Registry against the property. So the borrower is worried about informing his mortgage provider, be aware that it makes no difference, as the first Mortgage provider cannot prevent a second charge being registered and anyway, the first mortgage holder will find out anyway.
Buachaill and other Law Specialists are ready to help you