Unsecured Loan Default

hairclip_2

Hi all..can anyone advise me on this situation...I own 2 propertys, one is mortage free and is currently being lived in by my daughter the other is my residence and has a small mortage to pay.
If I run into difficulty paying back an unsecured loan or credit card due to say redundancy am i then at risk of loosing my 2nd home (the one my daughter lives in and is mortage free), if the banks try to recover the debt as best they can.
Also what happens if I run into mortage arrears on the property I live in or simply just cant pay the mortage any longer...will the bank then force me to sell my mortage free porperty to recover what I owe them.

CLAPTON

in principle an unsecured creditor can apply to the courts for a charging order on your property and eventually apply to the courts to force you to sell... however that's a long way off and at would depend upon how much was owed, for how long and what you could afford to repay

obviously as a mortgage is secured on your property the lender could apply for repossession but there are various schemes to delay this.

hairclip_2

Thanks Clapton..you say a mortage is secured against the property but what about my other property...is it secured against both or just the one the mortage is taken out for!

CLAPTON

The mortgage is secure against the named property and the charge is recorded by the land registry against that property.