Homebuy Direct (2nd charge mortgages)

[HelenW]

I purchased a house using the Governments Homebuy Direct scheme.
I financed 70% of the purchase price (repayment mnortgage and cash) the remaining 30% was funded by the developer and Homes & Communities Agency (HCA) who have equal ranking 2nd charges registered against my property.
When the Equity Mortgages were signed I was not provided with "consideration copies" 7 days before I signed, nor was I given copies of the agreements post execution. In fact I was not given any copy whatsoever to keep.
Apparently the HCA's Equity Mortgage agreement is exempt from the requirements of the Consumer Credit Act 1974 and is not regulated by the OFT. The developers Equity Mortgage is subject to the provisions of the CCA, including the Consumer Credit (Agreements) Regulations 1989 and is regulated by the OFT.
Neither agreement was executed in accordance with the CCA and as I understand it the developers agreement in unenforceable unless on the order of the Court.
I don't expect the charges to be cancelled but these "lenders" can't be allowed to ignore legislative requirements and there not be any consequence for failing to do so.
I welcome any suggestions!

[PriorityOne]

Re: Homebuy Direct (2nd charge mortgages)

The 2nd charge is secured on your property, so I'm a bit lost as to what you're trying to achieve here.

[mgfboy]

Re: Homebuy Direct (2nd charge mortgages)

I can't see what they have done has harmed you at all or am I missing something.

Also did you know about the short comings in their process and what do you want done?

[oscar]

Re: Homebuy Direct (2nd charge mortgages)

Theres not really alot of information in your post.

With regards to the 30% element - was this a loan that you are repaying, or do they own 30% of the house - and therefore its future value? If its not a loan, it wouldnt be regulated as far as I can see.

As for the mortgage, which I am not too knowledgeable on, I really cant see that a mortgage company would give you no paperwork whatsoever? Not saying they didnt neglect to do this, but would seem a pretty shoddy company if that was their stance.