Halifax secured loan

cm1980_2

Hi dont know if anyone is able to help but to cut a long story short My partenr and I have now split and wish to transfer the morgatge and Our secured loan in to my name ( I get to keep the house as I have our daughter and have taken on board our secured loan in order to buy him out instead of having to sell if that makes sense?) I thought it would be straight foward to remove him from the loan but the only way in order to do that is for me to retake out the loan in my name which would be fine- but halifax are now telling me they no longer offer secured loans. This would mean I would have to take out an unsecured loan over a much shorter time period with double the interest! We are talking £20000 here ! The other option would to be to add it to my morgatge but as its a shared ownership property they will only allow more borrowing to buy more of the house! To make matters worse because it is a joint morgatge and secured loan he cant come off one without the other ! Help Im stuck! Can Halifax do this?

MarkyMarkD

Whether or not Halifax offer secured loans, they should be able to offer you a further advance on the mortgage which is basically the same thing.

The only reason this wouldn't work for you is if you couldn't get a mortgage for the total amount - but this would apply equally to a separate, stand-alone, secured loan.

I would have expected them to have already suggested this as part of the transfer of equity you are asking them to do.

cm1980_2

thanks for taking the time to read my thread Marky mark.
Halifax said if I had 100% share of the property they would be able to offer me a further advance on my mortgage but because it is a shared ownership property and I only own 25% they cant do this.

They told me they will only give further advances to people who have a shared ownership property to buy more of the house or for home improvements, It seems like I will be financially tied to him for the next 10yrs until the loan is paid off ! I just cant see a way out !

MarkyMarkD

I'm not clear from your reply whether the total amount of the mortgage and secured loan is more than 25% of the present value of your property.

If it is, then I can see that there is a problem as the equity in the part of the property you actually would own isn't enough to cover the potential new mortgage.

But if the total IS less than the 25% of the present value, you could remortgage elsewhere borrowing enough to pay off both the Halifax mortgage and the Halifax secured loan.

Does that work for you?

cm1980_2

Thanks Marky mark.

The total of my mortgage is £32,000 the secured loan is £20,000 the equity I have in total is £74,000 (for my 25 % share) which would leave me £ 20,000 so there is more than enough equity there.

The problem I have with taking another mortgage out is that lenders will only offer mortgages to shared ownership propertys to buy more of the property or for home improvements, so they would only lend me the money to pay off my current mortgage but not the extra for the secured loan, it seems im at a dead end every which way I turn !

regularsaver1

Hi

I have dealt with these transfer of Equity for a while

You would need to do a futher advance on the mortgage to combine the two - therefore repaying the secured loan. Even when Halifax did do the secured loans, it was always done the further advance way when changing the names

when you took the secured loan - you would have had to gain permission from the housing association, so in this case it should not give you a problem - as you are transfering like for like - and all secured on the property

I know that you are not allowed (by the housing association) to borrow additional funds for consolidation or anything like that - the only reason being home improvements. but in this case the only way forward, is the further advance - one balance, one payment, one mortgage

go back to them and say - this is not the same as you just borrowing additional money - you are changing names. Yes, permission will need to be given by the housing association, but i don't see this will be a problem - as long as you meet all other criteria. I have got these through, with permission from head office and housing assoication

the mortgage and the secured loan as it is - should not be more than 25% of the property vale (value being when the loan was taken) -

the crucial question is: did you get permission to borrow the secured loan from the housing association?

cm1980_2

Thanks ever so much for your reply Regular money saver, much appreciated.

I personally did not get permission from the housing association when the loan was taken out, im not sure as to whether or not halifax would have done this themselves, i imagine if they hadnt it would be because the atcual amount I was borrowing (£20,000) I would have had enough equity in my 25% share alone to cover that- I dont know if this is right, just a pure guess but Im pretty sure the housing association were not informed.

The further advance could be a way out, they credit/affordability checked me soley and that came back fine, they'd lend to me but the problem was getting it authorised by a business assesor at head office I think they said? As there are arrears of £2000 on the rent account (even though we have an agreement with the houisng !!! that I pay back £80 a month of the arrears) and even though rent arrears dont affect your credit, the bank lady told me that there was no point in going any further as the assesor would take one look, see that there are arrears on the rent and say no immediatley.

Its so frustrating as it was a few months missed a long time ago on the rent! I have never missed a payment on my loan or mortgage !!!

MarkyMarkD

A few months' rent on 75% of the property was £2,000? Are you sure?

It sounds from regularsaver1's post as if the secured loan was illegitimate and that therefore the HA are not going to give permission for a further advance to pay it off. Effectively the further advance would be debt consolidation which regularsaver1 says the HA won't accept.

Doesn't sound like a good situation, sorry.

cm1980_2

yes, my rent is £300, it was 4 months missed so it was £1600.

I know its an awful situation and unfortunatley there just doesnt seem to be a way out for me, I just cant believe that there is no physical way for my ex-partner and I to not be financially tied together !

Thanks for all your help Marky Mark.

MarkyMarkD

4 x £300 doesn't equal £1,600. Try £1,200!

regularsaver1

MarkyMarkD wrote: »

A few months' rent on 75% of the property was £2,000? Are you sure?

It sounds from regularsaver1's post as if the secured loan was illegitimate and that therefore the HA are not going to give permission for a further advance to pay it off. Effectively the further advance would be debt consolidation which regularsaver1 says the HA won't accept.

Doesn't sound like a good situation, sorry.

Well its a strange one.

In normal terms the HA and the lender will not allow to borrow on a shared ownership property for consolidation

this is ok to do so with a further advance- as the lending is with same lender, as long as permission was granted the first time (ie the £20k could have been home improvements) . as the OP says they did not. the halifax adviser should have said this too