Welcome Finance loan secured against house query

sec79

Hi
I'm posting this on behalf of a relative. I've found out that a relative took out a loan in 2008 with Welcome Finance which was secured against their house. The outstanding amount is about £15k.

They are struggling to pay the amount required each month. They have tried to negotiate lower payments but Welcome Finance aren't interested. Their representatives have told the relative to pay them before the mortgage company aswell. Thankfully the mortgage is being paid.

Can anyone please advise if the loan is secured against the house, what happens if they can't afford the monthly payments? If WF won't accept a lower payment each month what would happen? I'm trying to avoid the house getting repossed.
I have advised the relative to make an appointment with Citizens Advice but I do know they are swamped with queries and this could mean a few weeks wait.

Any advice gratefully received
Thanks

RAS

Your relative could probably get some quicker advice from one of the other debt charities listed here http://www.moneysavingexpert.com/loans/debt-help-plan#help

Without knowing if they have any other debts and what their income and outgoings are, it is impossible to advise.

I suggest they come on here and do a Statement of Affairs so people can help them.

Tixy

You are right that this should come after the mortgage but it should be paid before any unsecured debts. Does the relative have other debts and are they paying them?

Rather than wait ages to see CAB your relative could possibly email national debtline for advice (or you on their behalf).

spacehopper1

Hi,
It is not welcome's policy to repossess property as there is usually little or no equity to make it worthwhile especially in thr current economic market.
If there is equity then the goverment has set up new schemes I think with the local council's to help people out.
If they wan't to keep the house then they need to find a way of paying the contractual payment if not they could surrender the house back to the mortgage company and then go bankrupt with any outstanding debt's owed.
If the contractual payment is not made it will cost them a fortune in additional interest and charges and on £15k it will be maaaahusive and they will never get it paid off.