charge on house by creditors?

Josie64

not sure if this is in the right forum ? please move it if it in the wrong place

me and hubby have debts approx £25 , getting advice from CAB offering creditors £1 month, but what I was wondering has anyone on here had any creditors put a charge on the house? what exactly is it and what happens? can they force you to go bankrupt? , I started new job yesterday and hopefully we can start to make a dint in the debts....

isgman

as far as I know the Creditors will have to take you to court to place a charge on your house... so unless you have been taken to court don't panic
(I think I am correct in what i say but if I am not one of the experts will let you (and me ) know) Good Luck

chevalier

I too am not sure. But I do remember someone saying that if the loan is unsecured (ie your home is not at risk if you default), then the loan company would have to get the agreement of your mortgage lender before they could put the charge on. But someone who is more knowledgeable will be along in a mo.

In the mean time, if you put up a statement of affairs (SOA), then I am sure we can help you save some money. There is a sticky at the top of this page that shows you have to lay it out.
Best of luck
chev

chevalier

I too am not sure. But I do remember someone saying that if the loan is unsecured (ie your home is not at risk if you default), then the loan company would have to get the agreement of your mortgage lender before they could put the charge on. But someone who is more knowledgeable will be along in a mo.

In the mean time, if you put up a statement of affairs (SOA), then I am sure we can help you save some money. There is a sticky at the top of this page that shows you have to lay it out.
Best of luck
chev

oops
sorry didn't mean it to come up twice

frankie1_2

I know that with the newer Flexible Plus/Flexi Plus mortgages offered by many banks, they do not allow charges or secured loans to be made on or against the property mortgaged. I do not believe your creditors can attach a charge without going through the courts

file_wizzard

Basically even an “un-secured” loan could eventually result in a charge on your property, however this is normally a last resort.

In order to obtain a charging order the creditor would first need to secure a CCJ, which you would then either have to default on or willfully avoid to persuade the court that a charging order was appropriate.

With regards to the flexi type mortgages I have not heard of this arrangement before, as a charge is decided by the court, not the mortgage creditor, it may well transpire that if a charge is obtained against a property that was mortgaged under one of these products that the mortgage lender would consider you to be in breach of agreement and may look to terminate the contract……..…Any one else heard of this ?

Dr.Shoe_2

Capital One sent me a letter to say that they were applying for one of those on my home...

...the thing is, it's rented!

Pobby

Dr.Shoe

---

that`s brilliant!

chelly63

Dr.Shoe wrote:

Capital One sent me a letter to say that they were applying for one of those on my home...

...the thing is, it's rented!

Dr Shoe that is just classic lol

Josie64

thanks for replies , SOA was posted ages ago when I first joined but since then have moved phone calls/line rental inc b/band for 29.99 month instead of 69.00 phone bill bill with talk talk + b/band internet @ 14.99 month

Brown_suga

File wizard is right, an unsecured loan can be registered against your property as a charge, but this is only after judgement (CCJ) has been obtained and it is decided by the court. Which will mean it will have to be piad after your mortgage on the sale of your home before any equity comes to you.

Each creditor is different and some might take reduced payments etc. Some might decide to press ahead with legal action.