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First Direct Changes to Feudal Lending

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  • First Direct Changes to Feudal Lending

    I took out my a tracker mortgage with First Direct as I liked the idea that I could have a flexible mortgage. I recently contacted them to borrow against my primary property for a further property development. Initially everything sounded great as I would still have better than 65% LTV ratio even with the additional borrowings therefore I could access the best interest rates. However, having went through the process they now tell me that not only have they declined this application but they will not allow me to borrow any further advances against my principle property as they will no longer lend against Feudal properties.

    I don't understand this can someone please let me know why a lender would do this. I thought that Feudal properties were actually a better risk given that you own the land as well as the property.

    They will honour the current agreement but will not entertain any changes, how do I access my capital for investments without having to go through a new mortgage for my principle property. I paid a fee for my current mortgage and this seems very unfair and I haven't had any logical reason for this!

    Please help if you have any answers?