I am really annoyed and need advice please...

[ICEQUEEN20]

My hubby and I have had a 10k home improvement loan with our bank (H@lifax) agreed and ready to be paid into our account, credit checks fine etc, however they rang me tonight and said Central Trust who we took a 10k loan out 3 years ago with (2 years left to repay) have refused to allow H@lifax to let us go ahead!!!!??? We have never defaulted on a payment with them, the H@alifax said to be able to continue we need to pay CT off first (about 6K) but the early redemption fee is about 1K, we also need to instruct a conveyancer who will act for us and get this paid off so we can continue with our home improvement loan. We have a very low mortgage, excellent credit, no other loans/credit and equity in our property. How can this be allowed, I am so annoyed - they are basically holding us over a barrell so we have no choice to pay them first - its a form of blackmail in my eyes... any advice appreciated, and does anybody know what fees a conveyancer will charge acting for us to do this? Thanks

[Ankou]

try getting a loan from somewhere else to see if it is ct or halifax being awkward.

[dothawkes31]

Why waste £1000.00 in a redemption fee?? That's 10% of your otiginal loan, i would challenge Central Trust about their refusal to allow another bank to loan you money. If you have applied to the Halifax and they have approved you, how can a third party interfere?

[ICEQUEEN20]

Thats what I thought Dot I am fuming. The Halifax would have nothing to gain by trying to stop us have been a mortgage customer for 17 years. Central Trust have rang me a couple of times over the last year, asking us to move our loan elsewhere, which I thought strange as we are keeping to our side of the contract so they should do the same. Perhaps they just want to earn another 1K out of us.

[whiskeryron]

Have word with Citizens Advice, see link below

http://www.citizensadvice.org.uk/

[SIRandyraven]

If you have a loan of your property , they have some sort of say in other loans against your property.
Heard of this prior.

[SIRandyraven]

Google Martin Lewis forum ..
repeat your question in that forum.
You will find lots of good advise. Many forum contributors work in the finance industry.

[ICEQUEEN20]

So their say takes higher priority than my main mortgage provider of 17 years? So they would also control whether I could sell my home or not in the remaining 2 years of my loan with them ? etc. ..etc.. Unbelievable...