Tesco's Secured Loan **I Need Help**

bluerhino6

Hi All,

I took out a secured Tesco loan of £8000 3 years ago. This loan was in my name but was used by me and my now ex wife for home improvments, consol etc.

A year ago we divorced and as the loan was in my name I agreed that I should pay it. The house to which the loan is secured against has now been signed over to my ex wife, The house is worth £180,000 and there was £80,000 equity in it.

I now live in a rented house and have debts of £13,000 as I virtually had to set up a new life, new furniture, electricals etc

I have not only got to pay £7500 on the Tescos loan but I also owe £3500 on a credit card, £800 on a Argos card and £800 to my solicitor plus a few small debts.

I have tried getting a loan for £15,000 to consolidate all these debts into one but am struggling as I dont have a property to secure a loan against.

The tescos loan amount is £94.00 per month which I am struggling to pay, What will happen if I dont pay this? As its secured against a property I dont own!

Also can anyone recommend any way of consolidating all this debt?

I am in a full time job and I currently earn £1600 a month after tax.

churchrat

Hi

not much help I'm afraid, but a couple of things to clarify?
what do you mean "signed over" what did you do?
did you inform tescos when you signed the house over to your wife?

thanks

moneysaver599

Can you post up a full Statement of Affairs

http://www.makesenseofcards.com/soacalc.html
or
http://www.britishinvasion.co.uk/soa/soaedit.php

so we can see exactly what you spend/owe and where you can save!

Thanks

moneysaver599

I wouldn't recommend consolidating - it just frees up more credit and takes longer to pay off - other's will be along with more helpful info on this soon!

Also, as there was £80k equity in the house - did you not get a payment from your ex-wife were the deeds simple transferred to your ex-wife's name?

The secured loan should have been settled at the time of the house no longer being in your name - I have no idea what will happen now!

bluerhino6

My ex wife put £80k into the property when we first moved in together, as it was her parents £80k, I signed an agreement at a solicitors, a pre nup I suppose, saying that if we ever divorced she would get her £80k back. So basically I signed the deeds over to her.

CLAPTON

what do the deeds say about ownership?.. are you both on the deeds?

is the mortgage in joint names?

are you sure the tesco loan is secured on the property? If so did you obtain the mortgage lenders permission?

does the land registry entry show tescos as having a charge on the property?

bluerhino6

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1600
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 94
Rent.................................... 850
Management charge (leasehold property).. 0
Council tax............................. 94
Electricity............................. 43
Gas..................................... 15
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 0
Mobile phone............................ 80
TV Licence.............................. 11
Satellite/Cable TV...................... 40
Internet Services....................... 40
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 0
Car Insurance........................... 29
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 10
Buildings insurance..................... 8
Contents insurance...................... 8
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1912

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Secured Debt.................. 7500.....(94).......0
Total secured & HP debts...... 7500......-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin Credit Card.............3500......50........0
Argos card.....................800.......35........0
Solicitor......................800.......100.......0
Total unsecured debts..........5100......185.......-

Monthly Budget Summary
Total monthly income.................... 1,600
Expenses (including HP & secured debts). 1,912
Available for debt repayments........... -312
Monthly UNsecured debt repayments....... 185
Amount short for making debt repayments. -497
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -7,500
Total Unsecured debt.................... -5,100
Net Assets.............................. -10,600

bluerhino6

CLAPTON wrote: »

what do the deeds say about ownership?.. are you both on the deeds?

is the mortgage in joint names?

are you sure the tesco loan is secured on the property? If so did you obtain the mortgage lenders permission?

does the land registry entry show tescos as having a charge on the property?

The deeds have been signed over to her, The mortgage is now just in her name.

We did not obtain the mortgage lenders permission when we took the secured loan! I just assume it was secured on the property as they asked for all the equity details when we applied.

I have not checked the land registry so am unsure about if they have a charge on the property.

bluerhino6

churchrat wrote: »

Hi

not much help I'm afraid, but a couple of things to clarify?
what do you mean "signed over" what did you do?
did you inform tescos when you signed the house over to your wife?

thanks

I did not inform Tescos when I signed the house over to my wife.

CLAPTON

it don't think you have a secured loan but simply an unsecurd loan solely in your name

check the land registry entry

LoopyPrune

Can't perform a Deed change without the agreement of all charges on the property. Yours is just a run of the mill unsecured loan. Chances are they wanted to look at the house documents to influence their decision to lend.

Sounds like you got a real bad deal. Fair enough on her getting the equity from the house but still she should have chipped in if the loan was spent on home improvements.