Secured Loan but want to move house

Elloyd

Hi

We have a secured loan against the house we are living in. We want to move house and area to lower our motgage payments, and be able to pay our debts off better.
Does anyone know if we can move the secured loan to our next house, or will we have to pay it off before we move. If we have to pay it off before we move, we cant afford to move.. So stuck..

HELP

Silvafox

Hi, I have been through this a couple of times.

I'm afraid it all depends on who the loan is with, but the majority of lenders insist on paying back the balance of the loan before they'll release the charge on the property. Some companies may offer to port the loan, but I personally have never been given that option (mainly because I had used sub prime lenders).

If you can pay a large amount of the loan back with the sale proceeds, I'd call them and ask if you can pay a lump sum back and have the remainder converted into an unsecured loan. I have done this before, but they do ask lots of questions.

FYI if it's Welcome finance, they'll insist on the balance I'm afraid.

Your best bet is to simply ask them about what you intend to do and if there are any options.

Elloyd

We have the loan through Ocean Finance, using a loan company called Endeavour..
I just cant believe it.. We are trying Soooo hard to get out of this mess we are in, and decided to move completly to a different area so massivly lower our mortgage payments, only to be told unless we pay the loan off we cant move. So no matter what and how we look at things, we are stuck in this whole we are in....
I just feel like giving up, I honestly do..

Silvafox

Have you asked them already?

If not, it's worth a call to explain what you'd like to do. As I mentioned, I was able to pay what was left out of my house sale (£17k) to them and the remaining £7k was converted to an unsecured loan.

Elloyd

I have spoken to Ocean, but not the loan company direct... Thanks for your advice. Fingers crossed hey....

Thanks

Silvafox

Yeh, speak to the lender not the broker if you can, as the broker will only have to go to the lender anyway.

Good luck...

ILW

Is there any equity in the house including the loan?

Elloyd

Yes, but we need that for the deposit for a new house i believe. We will have about 40K, but need 32K for a 20% deposit, and the rest will be on estate agents fee's for selling the house we are in.
I have just called the loan company, and begged and pleaded with them to let us move the loan to another house, but they wont budge. We are stuck, cant move, cant do anything.... Peed off is an understatement.
Thought moving house to a cheaper place to be able to pay things off was the answer to our problems, but cant even do that now.

Silvafox

Sorry to hear that.

Would it be worth selling anyway so you can still move to a cheaper area, paying off the secured loan too of course, and then renting? That way you'll have reduced living costs and be free of a large loan. Save up a deposit from there maybe.

Just an idea.

ILW

Sell up and rent seems to be the answer. Depends on how tight things are at the moment.

Emmzi

you have £40k equity after the loan is repaid?

I am failing to see the problem, help me out?