Cannot move home due to Welcome finance - please help

cheekychco

silvercar wrote: »

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?

Nope. i told them it was shared ownership, what I owned and what my equity was. i told them what rent i paid, my outgoings etc. No-one viewed the property. I signed the paperwork, each time, and the cheques were sent to me. thats it.

The did contact my mortgage lender or housing association.

silvercar

One option to investigate is voluntary repossession. You hand the keys back to the mortgage lender and they sell the property, take their share of the proceeds and give anything left over to Welcome. Welcome then contact you to arrange a repayment plan for the loan. This will then be an unsecured loan, provided you keep up with the agreed repayments it shouldn't lead to a CCJ or bankruptcy.

The downside is that you would find difficulty in getting another mortgage for a few years. You will also find that the mortgage lender will sell cheaply and there will be little left over to pay the lenders costs in repossessing.

bandofbrothers

I dont understand why you approached this well known horrible company if your credit rating was low, by clean.

Welcome Finance's apr % is astronomical and they tend to serve people on bad credit limits, who dont initially care about the high apr % as long as they get their cash.

I concur with the previous reply on PPI.

Go to Citizens Advice and or a financial advisor who would be able to guide you in the right direction.

My heart truly goes out to you and hope all works out well asap.

surreybased

Hi,

I would agree with the other posters, best to get some financial advice. However it seems you are coping financially, even with a high level of debt, although you're constrained with space.
I know it can't be ideal but the children won't really be impacted by lack of space. The big impact is on you but if you can cope then the kids will be fine.

When the children are older is it likely the childcare costs will reduce and therefore you can pay off more towards the loan? Do you have any family who would help you? Do you have a partner who can share the burden? Are there any assets that you can sell to build up a fund to pay off the loan faster?
Not sure there are any solutions other than work to pay off the debt as soon as possible, build up positive credit scoring so that you can refinance to a personal loan with a better APR.

Why not post on the DFW board and get some support whilst you pay the debt down

pinkshoes

Is there anyway of upping your income?
What do you currently earn?
Does the father of your two children not support you?
Would it be possible to rent out your 1 bedroom flat, then rent a 2 bed flat in a cheaper area? Or move in with family?

poppy10_2

I can't understand how Welcome agreed to give you a £21,000 loan secured on less than £7,000 of equity? Were you honest with them when you took out the loan?

cheekychco

surreybased wrote: »

Hi,

I would agree with the other posters, best to get some financial advice. However it seems you are coping financially, even with a high level of debt, although you're constrained with space.
I know it can't be ideal but the children won't really be impacted by lack of space. The big impact is on you but if you can cope then the kids will be fine.

When the children are older is it likely the childcare costs will reduce and therefore you can pay off more towards the loan? Do you have any family who would help you? Do you have a partner who can share the burden? Are there any assets that you can sell to build up a fund to pay off the loan faster?
Not sure there are any solutions other than work to pay off the debt as soon as possible, build up positive credit scoring so that you can refinance to a personal loan with a better APR.

Why not post on the DFW board and get some support whilst you pay the debt down

The space more bugs me than the kids lol. But as they get older it will become an issue. My place is so small, really designed for a single person.

Ex partner is signed off work (i wont go into details) but he does look after the kids while I work. Without him i couldnt work.

Child care is partly paid by child tax credit and yes will reduce in Nov when my oldest turns 3.

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I tried both my banks that I have been with for years. Even though they say my credit score is good (I even took a copy of my credit file) they always say "due to responsible lending we cant lend you that amount". They wont lend me anything as they say I have too much in my name as it is. Just the loan, mortgage, credit card (which is always paid) and a catalogue (which is always paid) I got these to repair my credit and it worked but I'm still stuck!

I explained that them helping me with a loan would obviously reduce my credit and help me clear the loan quicker. As usual - the computer says no lol.

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silvercar

Did you read my earlier post?? Speak to your mortgage lender about voluntary repossession.

cheekychco

silvercar wrote: »

Did you read my earlier post?? Speak to your mortgage lender about voluntary repossession.

Sorry I must've missed that bit apologies and thank you for the suggestion. That would enable me to rent. It would leave my credit rating low but I can leave with that.

At least that way I'll be abel to try and save for another place a lot further in the future.

I'll also speak to my housing association about that too as I woudl really need somewhere to go before steering down that avenue but its certainly something to look into - may be a little ray of light

Big thank you.

tbs624

Have a look here http://www.communitylegaladvice.org.uk/