Secured loan help required

sopandol

Hello,

We have got a mortgage on a shared ownership basis with a housing association, so basically our house cost £150,000 and we payed £75,000 for it. The mortgage we took out and still have outstanding is £72,500. We recently had the house valued and it hasn't changed by much either. We have our mortgage with the halifax, and also have 2 secured loans, one for £18000 and one for £11500. This is where it gets confusing. We looked in to transferring our mortgage to another lender but couldn't as the total cost of loans seems to be well higher than the value of our house. We mentioned this to halifax and they were very cagey about it. Could we have been missold these loans and if so what can we do about is? Our interest rate with the halifax has been creeping up and we would really like to look at switching.

Your help is greatly appreciated, thanks

Sophie X

jonesMUFCforever

Did the secured loans people knock on your door and sell you the loans or did you actually apply for them?
If so how can they be missold?

The problem you have is that you only actually own half your property - the other half is owned by the housing association. So on a valuation of £150k you own half so it is down to £75k but you owe £102k.

YOU are in negative equity in a big way.

Unless the housing association is willing to dilute their holding (unlikely?) then I cannot see anyone being able to help you remortgage whilst you still have the secured loans.