In 1989 I took out a Further Advance loan from the Halifax whose premiums were joined to the mortgage repayment premiums and an additional MIG premium was levied. I understand that the Further Advance was secured against the increased equity in my home at that time. Part of the shortfall claimed by the Halifax is due to this additional loan. Does anybody know if the Halifax Further Advance is a simple loan (6 year limit) or is classed as a mortgage (specialty debt ie 12 year limit)?

-- Gordon Bennet (arsenewhinger@hotmail.com), May 21, 2002

Answers

This will depend on whether the Further Advance amount was added by way of codicil to the original mortgage advance documents - the loan has to show that it's security is the property itself, not the equity therein where added at a later date. I bet they didn't do it properly, in 1989 they were too much in a rush to dot the i's and cross the t's. My guess is that it's a six year debt simple. This is a technically precarious area and you should get a qualified legal opinion. I am *not* a lawyer.

-- Too scared to say (iwasduped@yahoo.com), May 21, 2002.