Charge on Mortgage

Mizz_Pink

Hi,
This might be a long story. I hope I explain it properly.
H2B owed 2K on finance he took out on a car he bought in 2001. He then was given a co car and took car back and cancelled finance agreement. Garage owner claimed work needed doing on the car, h2b offered that he gets the repairs done, Garage owner said the work was already done although he couldnt show h2b the car or the receipts for the work. A warranty was also in date on the car. The cost of the repairs co-incidentally were the same amount as the garage owner would of lost on the finance arrangement.Garage owner took h2b to court for not paying the rest of the finance (garage owner IS the finance co).CCJ was issued for 2K. H2b started paying monthly but then changed jobs. No more payments made. Garage owner has since put a charge on the property. We cant change the mortgage to release deperatly needed equity. Garage owner has put on top so much intrest he now owes £10K.
Does garage owner have the right to add all this intrest. Ive told h2b he needs to pay a solicitor to sort all this out for us and give us the right advice. We have also tried the Land Registry, who applied to Garage owner to remove the charge but he refused. H2b is willing to pay the CCJ but not the extras.
Can anybody give us some constructive advice please.
Bear in mind i wasnt with h2b when all this happened. I only know what he has told me.
Thanks so much

Robert_Sterling_3

Why did H2B stop paying after he changed jobs?

Xbigman

Sorry to say its a mess and it is mostly self inflicted. If this has been to court already then H2B owes the money. Yes the finance company can charge interest (8% is the going court rate), yes they can charge fees for all sorts of things. The options to fight this have been and gone and seeing a solicitor is just going to cost more. As there is now a charge on the house this debt simply must be paid.

Also, please consider carefully before releasing any equity. This (as the majority on this board will tell you) is just piling on the debts even more and achieves nothing. Lowering payments nearly always means paying more over the long term. The exception is if you remortgage but don't increase the debt and move onto a lower interest rate. Which it seems you are not doing.

Apologies for the bad news.
Regards




X

Mizz_Pink

We cant pay the garage owner anything unless we can release the equity. Which is about 80k. The only other option is askign my parents and as they are already paying for our wedding next year it seems a bit unfair. I dont understand how the garage owner can suddenly be asking for 10k. We havent heard from him for 3 years.
H2b said it was the garage owners responsibility for finding out h2b changed jobs
Thanks

Mizz_Pink

The garage owner has also been investigated by the police for credit fraud and overcharging on credit.

homersimpson_3

it's probaly not the answer you want to hear but what about postponing the wedding and asking parents to use the money they would have paid on wedding to get you out of mess. you can then start saving and get married later. you say debt is 10k (when interest/charges added on)- even if wedding was costing a few grand it may give you some breathing space.

Robert_Sterling_3

Don't postpone the wedding.
Just get married.
It can probably be done for about £100 or less.
I am a bit out of touch on this topic
but when I got married I think it cost about 11 shillings and 6 pence.
Not a bad price for over forty years of wedded bliss !

As for H2B perhaps H2B or not 2B that is the question.

MarkyMarkD

I quite agree with RS1; our wedding cost a lot less than £1,000 even though it was a long time after RS1's. If you want to get married, get married. It's BEING married that matters, not wasting £xk doing it!

As for the debt,

(1) you can't just return a car and expect the credit agreement to be cancelled, except in particular very specific circumstances;
(2) when the creditor took your h2b to court, he should have attended to defend the case - once a CCJ has been awarded, you have to pay up and it's too late to start saying the money isn't due. If you'd attended in court, you could have demanded production of the evidence of the work done etc.

It's a lot too late to do anything about it now, regrettably.

IN_LIKE_EVERYONE_ELSE!

Xbigman is right, equity release in the current market is a bad idea. The charging order will only hit when you sell the house, this means that the nasty garage owner won't see his cash until you want to move or remortgage. Think of it as an interest free loan.
Can I say the garage owner needs a slap?

Mizz_Pink

Thanks for your replies. We cant postpone the wedding and I wont either. have waited too long for it and all the deposits are paid and venue booked etc. Anyway its h2b debt so why should i miss out ?
Our financial advisor has said we can release the equity in the house first. We would need 25K max which would take his mortgage up to 65K. Is that so bad in this day and age?
I think I might take it to a solicitor anyway and just see where we stand. h2b knows he will have to pay him at the end of the day.

Robert_Sterling_3

You can lead a horse to the water but you can't make it drink.