statute barring - how does it work?

sarahhatfield

1998 - applied for Homeowner loan to current building society. Received the money later that year to pay off business debts. A verbal agreement was reached to pay the money back over the remaining term of the mortgage at the standard mortgage rate. Since then no further correspondence from building society re. repaying the loan or expected repayment schedule. There has been no written confirmation that the loan had been granted, how much for or over what period. A loan application form had been filled in at the time and submitted.
Assuming that the first payment should have started in Feb 1999, will the whole loan be regarded as statute barred in Feb 2005?

[Deleted User]

The loan sounds like a secured loan so will be against your property should you default.

When you signed the application form - there would have been terms ad conditions of the loan which - by signing - you agreed to.

You can - in some cases become clear of the loan - if they have have not chased you up for it within any 6 year period over an entire period of 12 years.

However, as the loan is likely to be tied to your property - it is unlikely you will get away with not paying it back and it will flag up should you decide to sell up.

I find it hard to believe that a loan granted has not been chased up for repayments - is it possible it has been added to your mortgage instead?