Loan consolidating in ireland
In 2015, the appellants disposed of a property which, amongst others, was securing the First Loan. Having effected the sale of the property, one of the appellants proceeded to partially redeem the First Loan and retained the surplus proceeds of sale.
If you do decide to take out a consolidation loan, shop around for the best terms from a reputable lender.Justice Whelan concluded that it cannot be contended that the provisions of the doctrine are to be read into a security instrument in each case. Justice Whelan referred to the fact that the Bank at no point sought to exercise the doctrine of consolidation and that the Bank were relying solely on their contractual rights.She further clarified that there is no authority for the proposition that a lender can be compelled to exercise this right by an attempt of a borrower to unilaterally invoke the remedy.The appellants appealed the decision of the High Court on a number of grounds including the ground that notwithstanding the express terms of the Finance Documents, the Bank was not entitled to rely on such terms for the purposes of enforcing cross security unless they could demonstrate strict compliance with the equitable doctrine of consolidation in addition to the express terms of the documents.In determining whether the provisions of the doctrine of consolidation could be implied into the Finance Documents, Ms.Rather, the doctrine is reserved for the benefit of the lender to be invoked at their will. Justice Whelan found that the language contained in the Finance Documents was sufficiently clear and unequivocal such that the terms expressly provide that the loans are effectively cross secured by the separate mortgages and the Bank had validly invoked the cross security arrangement.
It was noted that all of the properties comprised as security in respect of the First Loan should remain as security in respect of the outstanding sums due on the Second Loan.
Consolidating debt is when you take out a single, new loan to pay off several existing debts.
This can be a good way of taking control of your finances but you need to be careful.
WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.
WARNING: THIS NEW LOAN MAY TAKE LONGER TO PAY OFF THAN YOUR PREVIOUS LOANS.
This decision reasserts the position that the right of consolidation belongs to a mortgagee and not to the mortgagor.