Second Charge on the House

PinotGrigio41

We are just entering into a DMP, but have a loan with Natwest currently standing at £33,000 ish. CCCS have advised that Natwest may go for a second charge on the house. From what I gather they cant force us to sell , but were we to ,we would have to pay them back with any proceeds we make from the sale ( thats fine as thats exactly what we would do anyway). I have tried to find out a bit more info on a second charge should it happen but am struggling to find much information.

Does anybody have any experience of this please and advice to offer ?

Thankyou x

fatbelly

My advice is not to worry about it as it may never happen. There is no logic about who does and who does not go for court action. It might appear likely to us and CCCS that they should do that but I have met loads of people with large debts and who own property and the bank has just accepted small offers per month.

On the other hand you might face court action on a £500 catalogue debt.

The route they have to take is court claim to County Court judgement. Then if you default on that they can go for a charging order. There's several relevant factsheets on National Debtline.

PinotGrigio41

Thats great thankyou. I'm not worrying about it too much but wanted to be armed with exactly what its all about should it happen, if that makes sense ! I will have a read of the fact sheets you mentioned. Do you know if they can force you to sell your property though ? I forgot to mention the loan is unsecured.

Angry_Bear

My undertsanding of a charging order is that it converts an unsecured loan to a secured loan. Primarily it is used to make sure (as you correctly state above) that if you sell your house, your creditor will be paid from the proceeds.

It is possible for your creditor to force you to sell, but must be granted by a judge. This happens VERY rarely, and never if you are meeting your agreed payments.

Hopefully someone a bit more in the know can confirm or correct that.