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Gareth78
Posts: 58 Forumite
Hi all, I hope this question makes sense!
Back in 2004 I took out a £7000 loan with Black Horse Finance for home improvements. At the time I just signed the paperwork and took the money, did my improvements and thought nothing of it.
However, now I am in the process of selling my property, I have just recieved the completed HIP where I have noticed a charge with HMLR made by Black Horse in 2004. Checking the Black Horse paperwork, I now realise that the loan was secured against the property although I don't really remember asking for a "secured" loan.
So really, my question is this.... when I sell, am I obliged to pay off the outstanding monies to Black Horse (I am not re-buying and therefore cannot switch to charge to my next property).
When I sell and have paid off the mortgage, along with other related fees, i will not have enough (about £5k not enough) to pay it off, so what happens? Can i try and switch it to an unsecured loan? Will they force me to pay it off?
Thank you all in advance for your answers.
Gareth
Back in 2004 I took out a £7000 loan with Black Horse Finance for home improvements. At the time I just signed the paperwork and took the money, did my improvements and thought nothing of it.
However, now I am in the process of selling my property, I have just recieved the completed HIP where I have noticed a charge with HMLR made by Black Horse in 2004. Checking the Black Horse paperwork, I now realise that the loan was secured against the property although I don't really remember asking for a "secured" loan.
So really, my question is this.... when I sell, am I obliged to pay off the outstanding monies to Black Horse (I am not re-buying and therefore cannot switch to charge to my next property).
When I sell and have paid off the mortgage, along with other related fees, i will not have enough (about £5k not enough) to pay it off, so what happens? Can i try and switch it to an unsecured loan? Will they force me to pay it off?
Thank you all in advance for your answers.
Gareth
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Comments
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Bump ;-) ;-)0
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As I understand it, if Black Horse hold a second charge on your property you cannot sell without either paying the loan off or getting Black Horse to agree to convert it into an unsecured loan. I think your best bet is to talk to them about this to see if they would agree to you selling.
Can you take out a personal loan for £5k? This would allow you to sell and clear all the monies owed.0 -
Surely there was a payment plan with Black Horse? Have you been paying them nothing? If so, you may be in for a shock when you see the outstanding balance as interest will have been added.
V confused ....
Warning ..... I'm a peri-menopausal axe-wielding maniac
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Thank you both for your replies....
In reply to Josephine, I don't think I would be able to take out a £5k personal loan, I will therefore talk to them about selling and converting it to a personnal loan.
In reply to DFC, i have been paying £147 a month for 5 years, the outstanding balance is just over £7k.
My property is on the market for £130k. Mortgage + fees will be £128k leaving me just £2k. Therefore £5k short of being able to pay off the secured loan.
Hope that helps and thank you once again for your replies.0 -
It's unlikely you will be able to sell unless you find a way to pay off the secured loan.poppy100
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