Does a chrging order effect you getting a remortgage in the future?

missyp123

Hi,

i won't give you our life story it would take forever to explian! But down to changes in our circumstamces we found it difficult to pay our n rock usecured loan.

our mtg is with halifax and now we have missed approx 6 payments to nrock. we have been making small token payments all of which have been cleared.

we are aware they will most likley go for a charging order but are wondering if this will effect us trying to re mtg in a few yrs time? or is it ok aslong a you are managing your payment set by the court?

our mtg is £112.000 we owe NR £32.000 but our house was only valued at £130.000

the mtg is only in my husbands name due to me not being in work...will this throw up any problems?(loan is in joint names).

any advice on this would be great....
xxx

Tiddler_2

In short the answer is yes, if you changed mortgage lenders.

Mortgages/secured loans/charging orders are all secured against the property in date order.

So at the moment you have your mortgage as 1st charge and then the N Rock charging order will be a 2nd charge.

If you look to change your mortgage to a new company then when the Halifax mortgage is paid off the NRock charging order becomes 1st charge. Now the new company will want to be the 1st charge owner so have to get N Rock's permission become the 1st charge. The N Rock charged would be postponed to be a 2nd charge again.

N Rock could refuse until you repay their debt in full.

The good news is that Halifax offer existing customers a new deal (unless in arrears) so you can get a new rate with them without affecting the order of the charges and without N Rock's permission.

Hope that makes sense!!

You are also unlucky that your loan was with N Rock as they the only company I have come across who take this action of registering charging orders to "secure" unsecured loans.

missyp123

yes that does make allot of sense thank you!fingers crossed things improve for us in the next five years then!NR have not mentioned anything about a charging order yet, any idea on how long they wait to apply for one?

neverdespairgirl

Do NR already have a CCJ against you?

missyp123

no they dont. we had a letter when we missed our second loan payment saying they will take action but nothin since. we have missed 6 months now and have been paying £5 every few weeks or more often when we can.

surley they will do something soon...?

(we are also in the same boat with a hfc loan but its a much smaller amount of £4.000 they have sent us a payment book so we presume all is okay with us making them token payments).

rlc_2

It might be worth getting a copy of your credit report from experian or some where - it's best to see what they've put against you. Credit Expert by Experian can give you this sort of information - you get a thirty day free period if you register for their product. There are probably other agencies around that do the same thing too.

missyp123

any idea how often they get updated? i done one about 4 months ago and nothing was on it.

i also had to get £300 credit towards a 3pc suite (paid half) about 3 weeks ago now. as i couldnt afford to buy one out right. no trouble with that at all.

but yes i think i will get one just to have a look. thank you

missyp123

Hi guys...just an update!

We sent off the budget (on the admittance n1 form) after going over it and getting advice debt advice.

Yesterday we received a letter form them to say that NRock are willing to accept our offer of £10 per month, due to our current financial circumsatnces! This is obviousley once they have the charging order granted.

i thought we would have to fight tooth and nail to prove our finances but i guess as long as they get the order they prob dont have much choice.

We are very happy it is nearly over and done with, we can now look at the long term and know that once (fingers crossed) i qualify at uni, we can start to save lots towards paying it back. At least the interest of £10+ per day will be stopped too. :T

i know for allot of people this would not be ideal, but for us it allows us to keep our home (which we could not sell along with the other 10 for sale on our road)!

Will keep posting updates, hopefully all will be good from now on.... i LOVE this site & MARTIN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:j

Taffybiker

Tiddler wrote: »

You are also unlucky that your loan was with N Rock as they the only company I have come across who take this action of registering charging orders to "secure" unsecured loans.

There is another one: Alliance & Leicester also do this as my wife and I found out the hard way.

Radiantsoul

Taffybiker wrote: »

There is another one: Alliance & Leicester also do this as my wife and I found out the hard way.

I think quite a few lenders use them. The problem for the lenders point of view is that they are quite difficult to enforce. You can apply to court to sell a house with a CO registered against it, but judges rarely grant it. Also to get a charging order you need to know if their is equity in the house.