I recently saw an article relating to interest on the following site: http://www.hardwickecivil.co.uk/property/articles/02080101.htm

On speaking to a solicitor in respect to this he said:

"The article is interesting in respect of the right of the debtor to appropriate to capital where there is nothing in the mortgage appropriating to interest, but seems to have missed (or pre-dated) WBBS v Crammer, which said the the lender can appropriate to interest even after the issue of proceedings, up to the time of skeleton arguments."

In a previous conversation the same solicitor also said:

"I would add that Crammer also said that a lender could appropriate proceeds of sale (to interest)up to the time that skeleton arguments were filed, i.e after proceedings had been issued. It also reaffirmed that the basic rule, in the absence of any provisions in the mortgage, is that payment is deemed to be applied first to interest and only then to capital."

Hope someone finds this useful.

Mark.

-- M Amos (idgroms@hotmail.com), June 19, 2003