Cannot move home due to Welcome finance

cheekychco

I’m really hoping someone can give me advice with regards to my Welcome Finance secured loan.

I took out a loan quite some time ago and topped up a few times. The result, total borrowed £21000. This loan is not due to end until 2022 by which time I will have paid back £72000.

At the moment I pay, without fail, £403.91 every month and £380 of that is purely on interest alone!

My problem is I own a shared ownership (part buy part rent) property and only own 25%. My mortgage was for £38000 and now my share is worth £45000 – equity £7000.

Now I really need to move house as my property is a one bedroom and I now have to small boys aged two and one.

When I enquired about a mortgage they said that I would have to get Welcome finance to agree to either 1. Move the charge to a new property (the new housing association may or may not agree) or 2. See if it can be changed to a personal loan.

I called my account manager who checked with is manager and I was told that if I sell the property I would have to pay off the outstanding balance which is not feasible at all. So in short I’m stuck in a one bedroom with two boys which is not healthy for any of us.

I have called various companies and I have now been told to seek legal advice as they feel that due to responsible lending I should never have been lent this amount. I have a low credit rating, not bad, due to not taking out much credit, hence the loan. I’m now in a deadlock situation as I cannot move unless I clear this loan and I cannot clear this loan at all.

You can no longer get a mortgage for 125% so that's no longer an option. I‘m at my wits end.

Short of me going bankrupt (which means no-one will get any money but I will also lose my job) I no longer know what to do.

I don’t miss payments, I always advise when my contact numbers changed and I can always be contacted so I am at a loss as to why this cannot be changed to a personal loan so that I can move. I also now cannot get a council property as the same situation applies. If I got a property, via the council, I would have to sell mine; which Welcome finance can put a stop on because I cannot pay off the outstanding balance in one hit.

Even though I’m not happy with the interest charges at all, I haven’t complained, I took the loan therefore it’s my responsibility to pay. I just want to be able to move house with my children.:(

Any advice would be greatly appreciated.

cheekychco

Seems I'm stuck then. Lots of views but no replies :-( If anyone does have any advice, no matter how small, it woudl be greatly appreciated. Thank you.

Wutang_2

cheekychco wrote: »

Seems I'm stuck then. Lots of views but no replies :-( If anyone does have any advice, no matter how small, it woudl be greatly appreciated. Thank you.

Have you thought of paying it all off with sale of property and renting for now?

danielanthony

If you dont pay the loan (for whatever reason) then your credit rating will be shot for 6 years at least - so you wont be able to get any new loans (mortgage) so unable to move anyway.

Sorry but it does seem like you're stuck, as you have a job I don't know how likely it is that the council will help...

cheekychco

Wutang wrote: »

Have you thought of paying it all off with sale of property and renting for now?

Thats the problem, I only own 25% of my share which is equal to 45000 - equity £7000. 40k would go stright to the bank to pay off mortage, leaves me with 5k which would have to go to the loan leaving apporx 17k that i still have to find.

My property is shared ownership (part-buy, part-rent). If I owned it outright this would be an issue

cheekychco

danielanthony wrote: »

If you dont pay the loan (for whatever reason) then your credit rating will be shot for 6 years at least - so you wont be able to get any new loans (mortgage) so unable to move anyway.

Sorry but it does seem like you're stuck, as you have a job I don't know how likely it is that the council will help...

I have no intention of missing any payments I just wanted to know what my options our.

I live in Islington and regardless of whether you work on not you are entltled to go on the housing list and be housed if you are over-crowed and/or cannot afford to buy a bigger propert out right etc. Thay have accepted meon their list but I would have to sell my property once one becomes available to me and therein lies the problem.

Sorry, I've never heard of a council not being able to house people because they work. But I make you right, I do seem pretty stuck for the time being...

neas

i guess you have an appreciation of what APR means now...

and how mortgages at 4% are pretty cheap.. putting it in comparison i could borrow 120k for 5 years fixed rate of 4.69% and pay 650 a month (400 quid or so interest).

cheekychco

lol neas oh I so do. Leanrt the hard way...

I was younger and stupid and didnt pay attention. I'll be making sure my kids do not follow suit...

katsu

Have you been in contact with Citizens Advice? I wonder if someone like that can help you figure out your options.

Can Welcome stop you selling the property? I appreciate that if you sold and could only give them £5-7k then you would have to come to an agreement to pay, and maybe deal with a debt collector, but can they actually halt a sale?

euronorris

Mmmm, tricky one and I honestly don't know where to start. Have you tried one of the debt charities or CAB for advice?

Sorry I can't be more help.

grey_lady

Is going bankrupt really not an option? how about an IVA?