Problems with interest rates and repayments? Ask for home loan help.
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Nervous home owners are asking what happens to their mortgage if their lender gets sold or goes bankrupt.
Check the terms and conditions of your loan first. Basically, it is unlikely that you would loose your home, as the debts are simply taken over by another entity. Our team at Your Local Finance are qualified and experienced to deal with mortgages professionally, so we are more than happy to assist you as you make decisions about your existing home loan.
If your lender is sold to another entity then your home loan simply transfers to this new lender and you carry on paying your mortgage repayments to the new lender. In most cases your home loan will remain under the same terms and conditions, although occasionally the new lender will renegotiate these. You still send off your payments each month or fortnight, they just go to a new entity. Home owners can look to refinance with a different lender all together if they are not happy with the lender that has bought the business and taken their mortgage on.
If your lender goes bankrupt then the creditors of the collapsed bank will step in and take control of your mortgage, and they are likely to sell it to another financial institution.
If you are asked to repay the loan in full immediately, seek legal advice as you would have rights to argue against this, if you claim it is unreasonable. But it is unlikely that you would be asked to repay the loan straight away, most mortgages are simply bought by another lender.
One of our advisors is ready to look at your mortgage and offer assistance with your choices. Call us on  or you can submit your questions via our website submission form.
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