When an unsecured loan is NOT unsecured !

dfr200764

I applied for a loan from a logbook loan company, loans2go. My reasons are due to having very poor credit from the past and so having to use a lender, like this one, who also offer 'personal' loans to preferred customers. Up until today, I was lead to believe I was but apparently when they carry out a search, they do a search of the Land Registry, not your credit file ! They declined my application because of a second charge with Welcome Finance, showing on the Land Registry. However, I know that when I remortgaged some time ago, it stated in one of the clauses of the mortgage offer from the Lender that the second charge with Welcome Finance would be postponed by way of a deed of postponement. So, technically, the lender not only is stuffing you with high interest but also are using my house as security. Is this legal ???

thanks

Dean

ps interest is 10% a month !!!!:eek:

CLAPTON

mortgage lender
welcome finance lender
loans2go lender


which lender is using your house as security?

antrobus

dfr200764 wrote: »

.... Is this legal ???

I believe so.

I think you might have misunderstood what is meant by a deed of postponment, and believed that it meant that Welcome had somehow relinquished their security over your property. It simply means that Welcome agreed to accept second place in the rankings to your new mortgage lender when you remortaged.

Welcome were always using your house as security. That's what having a second charge means.

_Andy_

Deed of postponement doesn't mean they gave up the second charge - think you've got confused about this.

Apples2

I think this is a first, being turned down by a log book loan company.

I didn't think this was possible.

If anything should be made illegal, it is people in this position being allowed to apply for loans.