secured loan on a house you want to sell?

rover25

Hi
If we were to sell our house we would be in more than 25 grand of negative equity. Therefore we would need more than this amt to clear it. I know that unsecured loans will only let you borrow up to 25 grand. Is it possible to take out a secured loan against the house say 30 grand and 6 mths later go to sell.
This may sound really silly as there is prob an issue if your selling the house that is what the loan is guaranteed against.
However, we are comfortable and secure in our employment and the repayments would be fine. My thoughts (which could be way off the mark!:o ) are that if you would get the loan against your house do the loan company become aware that the house is sold as long as their repayments are received?

CLAPTON

when a lender gives a secured loan they put a charge on your house with the land registry.
so you can't sell a house with a secured loan without either repaying the loan and releasing the charge or getting their agreement

rover25

Thanks for your reply. I read the merged threads on secured loans after I posted; stupidly!

rover25

Very quick question. Can you even get a secured loan if your house is in negative equity?

CLAPTON

clearly no rational and competent lender would provide a secured loan on a property without equity... but who would have predicted recent events

CTmole

CLAPTON wrote: »

clearly no rational and competent lender would provide a secured loan on a property without equity... but who would have predicted recnet events

well some lenders were going up to 125% LTV until about a year ago. in the current climate the best you;'ll get is 90 or 95% LTV but with prime lenders who have very very strict criteria.

CLAPTON

CTmole wrote: »

well some lenders were going up to 125% LTV until about a year ago. in the current climate the best you;'ll get is 90 or 95% LTV but with prime lenders who have very very strict criteria.

my point exactly

marshallka

CLAPTON wrote: »

my point exactly

Clapton would you say that companies (like firstplus used to) that offer 125% sub prime lenders and then the borrowers become mostly non status. I argued this with firstplus and they told me that they were not sub prime lenders as you could get their loans in a high street??

My argument was rule 78 used by sub prime lender and what the OFT said about this.

http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft192v2.pdf

I would class myself as a non status lender with a loan of 125% secured to my property??? I did not have a poor credit rating but certainly could not have got a loan like i did secured to my property from the high street or would not have gone to these in the first place.

Your opinion would be much appreciated.