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A23548 · 24 March 2018 at 10:08PM

Im hoping someone can help me as I really don't.know.what to do.
I was sold a secured loan back in 2007 for a property I.was buying (at the time of application I did.not own this house) my mortgage advisor suggested that it would be better to take this loan and keep my £15k deposit to renovate the house and in 2 years time I could repay early as property prices would riae. Unfortunately this did.not happen and I was left repaying this loan with Welcome finance at a whopping 21.6% rate of interest almost £34k for a £15k loan.
Anyways only recently I asked for prime credit (new buyer of the loan) to supply me a copy on.the original credit agreement. When this arrived to my horror it showed that the secured loan had been charged to my parents address where I only resided, I had no legal right to this property nor did I give anyone authorisation to secure it to their house! I then dug out all my documents which I had received from welcome before signing the original credit Agreement with the advisor. It was given as information onlyso I could read through everything prior to signing. My copy of the credit agreement showed that the property I was buying to be the security and where the loan was to be charged to.
So I obviously was given a credit agreement to check over that held very different information to the one I was briefly given to sign!
Where do I stand with this? Is this a case for serious mis selling? Has this been done to get round the fact i didn't own the house when the secured loan application was made?

sourcrates · 24 March 2018 at 11:23PM

Hi,

This was a common trick amongst brokers pre 2008.

Happened to us, we had a secured loan, and the income on their copy was twice what it was on ours, we, like you, did not find this out until years later, by which time it was too late to do anything.

They had exaggerated our income so we got the loan, no other checks were done, they just took the information on the application as gospel.

Is your loan regulated by the consumer credit act ?

If it is, you need to write a formal complaint to the original creditor.

They then have 8 weeks to issue a final response to you.

After this time you are free to involve the FOS if you are still not happy.

A23548 · 24 March 2018 at 11:35PM

Thanks for your response. How do I find out if it was under the credit act? Thanks

sourcrates · 24 March 2018 at 11:39PM

A23548 wrote: »

Thanks for your response. How do I find out if it was under the credit act? Thanks

It will say on your agreement something like :

This agreement is regulated by the consumer credit act 1974.

Or words to that effect.

Edit,

Just checked on national debtline, your agreement will be CCA regulated as your loan was less than 25k and taken out after 1st May 1998.

So you can complain and involve the FOS if need be.

A23548 · 25 March 2018 at 12:02AM

Thankyou so much. I cannot believe this has been "hidden" for so many years!
I will send a complaint in to them.

sourcrates · 25 March 2018 at 12:19AM

A23548 wrote: »

Thankyou so much. I cannot believe this has been "hidden" for so many years!
I will send a complaint in to them.

You need to mention that you have only just become aware of this matter, otherwise they may try to wriggle off the hook by using section 5 of the Limitations act 1980 to avoid dealing with it.

The time scales for complaining are :

If the event you are complaining about happened in the last 6 years, or if later than 6 years, within 3 years of you realising there was a problem.

Good luck.

robatwork · 25 March 2018 at 10:10AM

A23548 wrote: »

I was sold a secured loan back in 2007 for a property I.was buying (at the time of application I did.not own this house)

Am I missing something?

Can you take out a secured loan on a property you don't yet own?

Nebulous2 · 25 March 2018 at 10:21AM

robatwork wrote: »

Am I missing something?

Can you take out a secured loan on a property you don't yet own?

No - which is how the security ended up on the OPs parent's house.

You probably could simultaneously buy and take a secure loan, though with current mortgage criteria I'm not sure anyone would let you.

financegeek · 25 March 2018 at 1:36PM

Have you checked the title to your parents property to see if the charge has actually been secured against this? you can order a copy from the land registry for £3 to check if needs be.

I'm not saying the broker hasn't tried to secure against your parents property, but i'd be amazed if the land registry allowed a charge that wasn't in the legal property owners name to be secured.

It might be that they haven't actually secured the charge, which would mean the loan is effectively unsecured, although they may try to resolve this by taking a charge against the property you purchased once you alert them to this!

A23548 · 25 March 2018 at 9:23PM

As soon as I seen this sneaky condition I checked the land registry and luckily nothing appears on my parents address. It looks like the loan was secured on their property for the sake of the application to as you like "get" the loan approved and then the legal charge a separate document which I also have both my copy and the creditors official.copy was the property I was buying. When checking my property bueno and registry the charge shows at my property.
The credit agreement copy I was given shows just the postcode for the property I was buying as the security however the official credit agreement had my parents full address and postcode.
I have been advised lately that a secured loan is only available to homeowners to which I was not at the time of apply for this loan.
Is this fraudulent? It appears the loan was applied with incorrect/false information?
The broker was paid a fee which I only know of this now due to the breakdown of figures given by my solicitor when buying the house. Welcome also had their "commission" too from.this loan giving a financial gain for them.to approve the loan.
Is this a valid agreement with so many flaws/fraudlent information?
I still have 4 years left to pay on this however infeel there in.serious breach of TCF as they have not dealt in a fair or clear manner and appear to have been very underhanded.
What outcome will I try to look for as I'm completely out of my depth.
Appreciate all the replies

System · 26 March 2018 at 1:48PM

A23548 wrote: »

Is this a valid agreement with so many flaws/fraudlent information?
I still have 4 years left to pay on this however infeel there in.serious breach of TCF as they have not dealt in a fair or clear manner and appear to have been very underhanded.
What outcome will I try to look for as I'm completely out of my depth.
Appreciate all the replies

I'd say it most likely isn't a valid agreement. I'd be looking to be refunded some or all of the interest and fees at the very least. It will be very interesting to see what the outcome of this is, please do keep the board updated.

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