Cannot move home due to Welcome finance

ILW

Iron_Pyrite wrote: »

Cheeky,


Your situation is exactly one where you should get it written off - you have been taken advantage of - mi-sold and are paying a disgusting amount of interest ( they are already in profit from what I can gather.

There is a difference to being responsible and having an institution take advantage.

Also ignore those sad individuals who look for people to point out their mistakes. its normally caused by insecurity over their sexual organs :rotfl:

why should the loan be written off?

housebuyer_abc

ILW wrote: »

why should the loan be written off?

Why? Good question there are two sides to this...

Firstly Welcome didn't follow the rules and get full agreement before registering the charge and they also haven't been entirely transparent with their roll-up process

However on the negative side...

a) the OP said they were contracting when they took out the loan originally so it's likely that they put a high income figure on the loan app
b) Welcome have probably asked for a house valuation (come back at near £200k) and said okay thats good for 21 grand, the OP may have neglected to mention the 25% ownership nugget
c) The OP did agree to all this - and they work in Investment Banking so they should have a small understanding of how this works
d) Investment Banking and abysmal money management - who'd have thought it

Finally the title of this thread is wrong...

Welcome Finance aren't stopping you from moving - your decision to secure a loan against the property is, they'd be more than happy for you to move if you pay them back. They won't be able to transfer this loan as a charge to another property as nowadays the main mortgage bank won't let you go into negative equity to support a second charge - except in exceptional circumstances (and this isn't one of them)

cheekychco

housebuyer, thank you for your post but on a lot of your points you couldnt be more wrong.

a) I was contracting when I topped up the last time in Nov 2007. Beforehand, when I took out the secured loan, I was PAYE and when I topped up in 2006 I was APYE and it went up to £15K. I never upped my salary at all! I told them what I was on, that it was a contract and clearly stated that I would be going back to PAYE and what the salary would be. I only contracted while pregnant for 6 months and informed that I was due to go on maternity leave. they accepted that. I had to provide proof of income and as i was using an umbrella company, provided them with wage slips.

b) I've said this time and time again. I told them i only own 25% and what my equity was. Told them that the other 75% was owned by housing association. I have the paperwork that clearly shows that I stated this and I added this as a note that I only own 25% and that my share was worth £45k. no-one came to my house for a valuation at any point but they may have done this on line. I do not know. why would I lie about that.

c) I work in IT in investment banking! i do not need to have an understanding of loans etc. just how to work security. I only deal with people in IT and the end users in other depts are not people i get to know to ask for advice before doing these things!

d) see all above - you've made a judgement about me. People make mistakes, we're allowed to, i do not work with money, I work in IT and if you had actually read the previous posts you would've seen that I have just repeated myself, again, to you.

and yes they are stopping me from moving. As they have a 2nd charge on the house, hey can stop me from selling it, so I cant move! I have already been told, a number of times, that if i go to sell, they can place a stop.

Now when I said if it gets written off, I was venting. I just want it changed to unsecured so i can move. i doubt it will get written off, but at no point did they contact all parties when they should have. i was younger and stupid. i was entitled to be and now paying for it. I came here for advice and whilst anyone can state their opinions, please go by fact before you judge me.

you can work for a dance studio, doesnt mean you can dance, i.e be a receptionist etc, I dont work with money. Simple

cheekychco

Just like to add, that many of us stupidly put our faith in establishments, lending money, to advise us correctly, yes we need to do our homework as well, but we do stupidly follow their advice.

I'm now older, maybe only a tad bit wiser, but a hell of a lot better with money. hence why i have no defaults, ccjs, clear balance in my credit card and catalogue every month because i learnt from my mistakes.

Leela_G

cheekychco wrote: »

Just like to add, that many of us stupidly put our faith in establishments, lending money, to advise us correctly, yes we need to do our homework as well, but we do stupidly follow their advice.

I'm now older, maybe only a tad bit wiser, but a hell of a lot better with money. hence why i have no defaults, ccjs, clear balance in my credit card and catalogue every month because i learnt from my mistakes.

well said!!!! some people on here are far too judgemental - they are obviously perfect

housebuyer_abc

Leela_G wrote: »

well said!!!! some people on here are far too judgemental - they are obviously perfect

Perfect - no...

Tired of people not taking responsibility for their mistakes - yes...

And before anyone complains the fact the OP can't see that the reason they can't move is because they made a bad decision to take out an additional secured loan then they are not taking responsibility.

I will admit the lender was probably wrong - but it takes two to screw up finances - one to lend recklessly and the other to spend the money they were lent...

blue_monkey_2

housebuyer_abc wrote: »

Perfect - no...

Tired of people not taking responsibility for their mistakes - yes...

And before anyone complains the fact the OP can't see that the reason they can't move is because they made a bad decision to take out an additional secured loan then they are not taking responsibility.

I will admit the lender was probably wrong - but it takes two to screw up finances - one to lend recklessly and the other to spend the money they were lent...

Indeed, unfortunately many of us borrow money recklessly in their youth because we are naive and it is not really explained to us. Not all of us having families that can sit down and explain it to us and it would, IMO, be helpful to have finances incorporated into maths lessons.

However, the important thing is to learn from those mistakes and move on, which is what the OP is trying to do. As she has stated she is happy to carry on repaying the money she borrowed but also needs to move and is trying to find out what she can do to do that.

I think you'll find the majority of people on these boards have, at time time or another, been reckless and stupid with money in one form or another.

cheekychco

Housebuyer, what is your problem?!


I have stated time and time again I was stupid, geez, anyone would think you've never made a mistake. I have time and time again said its my fault, therefore taking responsibility.

!!!!!! for the last time, I'm not trying to get out of it, but it should not be a secured loan and will still pay it but it should be changed to unsecured. As I said before was venting when I said it would serve the right if it got written off. what do you work for Welcome or something?! comes across that way!

Now if they had followed the correct process and contacted all parties then I would've been given a flat no when topping up and 1. would still have had a secured loan at a smaller amount and 2. would be able to move as this would've been paid off once the property was sold.

This is why they now have be regulated by the FSA and their licence to become a bank was turned down. Due to the codes that financial institutions should go by they have a responsibility to ensure you have all the facts, hence leaflets you get at banks etc.

it is only recently I found out that they shouldve contact my housing association. unless you work in finance or know someone who works in finance |(i have neither) you do not know everything and expect them to follow the correct process. My job is to do my homework on it, not tell them what their processes are. if i did i'd have a completely different career wouldnt I?

Really dont know what your problem is but you dont know me, you also got a lot of facts wrong previously and our still doing so for saying i am trying not to take the onus of this loan.

Seems you are just one of those posters who like to annoy people when everyone else has been quite helpful. some critical but constructive and I've accepted theirs. Yours is not constructive at all. incorrect facts, saying things i havent said. anyone who reads all pages will see you are wrong in a lot you say.


God forbid you ever make a mistake in your life!

cheekychco

blue_monkey wrote: »

Indeed, unfortunately many of us borrow money recklessly in their youth because we are naive and it is not really explained to us. Not all of us having families that can sit down and explain it to us and it would, IMO, be helpful to have finances incorporated into maths lessons.

However, the important thing is to learn from those mistakes and move on, which is what the OP is trying to do. As she has stated she is happy to carry on repaying the money she borrowed but also needs to move and is trying to find out what she can do to do that.

I think you'll find the majority of people on these boards have, at time time or another, been reckless and stupid with money in one form or another.

Thank you. You've hit the nail on the head. I was very stupid but didnt know better and in a way something good has come from this.


I now know so much more about finances and will ensure my kids are very, very clued up with money when they are older. I didnt have that. they will....

richardvc

cheekychco wrote: »

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.

I haven't read the thread so forgive me if this is old news.

Without being cruel to the OP this is what happens when the likes of Ocean & Welcome get involved in your personal finances. Big loans over long periods with low repayments = front loaded interest + high settlement figures.

I'm sure we will hear about this more and more as the years go by - everyone warned about it happenning. Everything was always secured on the property so the loan companies couldn't lose.

Whilst I know you need to move, I don't think it would be morally correct to go bankrupt / IVA. I wish you luck and hope you find a solution.