Cannot move home due to Welcome finance - please help

cheekychco

Sorry if I have out this in the wrong place. I have also placed this on the loans page as wasnt sure which was best:
forums.moneysavingexpert.com/showthread.php?t=2489777


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.

Zelie

Have you spoken to the local council? The boys are probably small enough that they won't consider you any kind of emergency but you can at least get on the list or if you're already there then make sure you are in the right place.

poppysarah

You sound in need of proper financial advice. You're in a fair bit of debt with this loan and a mortgage.
Look at paying the debt off quicker and maybe even bankrupcy would be an option if there's no way out of it. however you're not going to be able to move to a bigger house without a magic wand I'm afraid.

cheekychco

Zelie wrote: »

Have you spoken to the local council? The boys are probably small enough that they won't consider you any kind of emergency but you can at least get on the list or if you're already there then make sure you are in the right place.

I'm alreayd on the council list but once a palce is offered to me I'd have to sell my property which Welcome finance can stop due to not being able to pay them back in one go.

cheekychco

poppysarah wrote: »

You sound in need of proper financial advice. You're in a fair bit of debt with this loan and a mortgage.
Look at paying the debt off quicker and maybe even bankrupcy would be an option if there's no way out of it. however you're not going to be able to move to a bigger house without a magic wand I'm afraid.

Thanks for the advice. Bankrupcy would really have to be a last resort. The job i do I'm not allowed to have CCJs or defaults (I always get credit checked) therefore I would lose my job and have to change careers.

Mortgage is up to date so selling the house would pay that back and leave me with 5k. However, that 5k would have to go to the loan leaving 17k and i dont have that sort of money to pay it off in one go.

Mortage companies, a financial advisor (I need to try some more) and the CCCS have advised me to get legal advice. I was just hoping someone here may also know something.

What a mess.

carefullycautious

Am i reading this right. You took out a loan for 21,000 on a shared ownership basis and have topped up a few times ( So what do you owe?)

You are repaying this via interest only (WHy not via repayment over a shorter term?)

I think you need to look at your outgoings and see if you can make some savings to pay down this mortgage as quickly as possible.

You will not be able to move with this level of debt.

Cant you put the boys into a bedroom and you and your partner sleep on a sofa bed in the lounge area.

Smallfries

I have a loan with Welcome Finance, horrible people, stab in the dark here but were you made to take any PPI with it. thats the route i have taken through the forums on this site. i was missold. also at the min i pay 185 a month, with 5 months left so i need to pay £925, if i settle now i owe them £1100. not sure how that works but digress a bit there

cheekychco

carefullycautious wrote: »

Am i reading this right. You took out a loan for 21,000 on a shared ownership basis and have topped up a few times ( So what do you owe?)

You are repaying this via interest only (WHy not via repayment over a shorter term?)

I think you need to look at your outgoings and see if you can make some savings to pay down this mortgage as quickly as possible.

You will not be able to move with this level of debt.

Cant you put the boys into a bedroom and you and your partner sleep on a sofa bed in the lounge area.

I initally took out a loan, then topped out twice the result is the outstanding it around 21k. My mortage is repayment. I said I pay £403 a month on the loan and £380 of that is on pure interest of the loan. Sorry if that was not clear.

cheekychco

Yes sleeping in the living room is an option but the flat itself is so small that by the time the youngest is of primary school age the space will be a real issue.

I already have issue with buggies etc and finding space for all our clothes. Plus i dont even have enough room in my kitchen for everything. The place was realy designed for a single person and I did not think I would ever have kids, let alone two.

I've already cut down on spending so I can try to make overpayments but with that in mind it will still take another 6-8 years to pay off by then the youngest will be 7 or older.

Smallfries

i dont have an answer but just want to wish you luck in working this out

silvercar

The wisdom of Welcome securing a 21k loan on a 25% share of a heavily mortgage property.............leaves me speechless.

Didn't they value the property when they let you top up the loan?