Question on Charging order.

Charliefiggis

Hi,

Not sure if this is the best place but here goes.

We got into some difficulty and ended up remortgaing with preffered mortgages. The money we released paid off 2 debts and left us with 25k with egg but have always paid the agreed amount through a 'middle man'.

The loan we took out was unsecured but they have put a charging order on our property, this happened about 2 years ago. Now at the time we were a bit shaken and obviously slightly worried about loosing our house.

Our fixed rate comes to an end in October and we go to the Libor rate +.99% How much is the Libor rate at the mo?

Now the question is can we contest the charging order as we have always paid and it was an unsecured loan. If we can would we be in a better position to get a better deal. The house is roughly worth now £130k outstanding mortgage will be roughly £122k

We have never defaulted on mortgages or utilities, we have both now had credit cards for a few months now and always paid on time to try and help our scores.

Thanks in advance for any help you can give.

luckyfool

Your libor rate with preferred is around 3.9% currently, however it is likely to reset at around 2.2% at the end of February, giving you a pay rate on the mortgage of 3.1% to 4.8% roughly.

Charliefiggis

Anybody have any ideas ????

_Andy_

Regardless of the charging order, you're going to find your LTV (loan to value) is going to be too high to remortgage elsewhere.

Charliefiggis

Yes, we thought that, but without the charging order it would seem more realistic if we can do some serious saving until October.

Radiantsoul

I think charging order are granted in nisi first, then three weeks later you get an absolute charging order. You are supposed to contest it in that period(there would be a hearing for each).

You are probably stuck with the charging order. Presumably you also have a judgement against your name.

Sorry.

_Andy_

Charliefiggis wrote: »

Yes, we thought that, but without the charging order it would seem more realistic if we can do some serious saving until October.

Assuming you have a 25k CCJ there you're going to be needing the LTV to be much much lower than what it is - you'd be needing to save 10s of thousands of pounds.