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House as loan security for sale?

freddieD
freddieD Posts: 64 Forumite
in Loans
I have applied for a secured loan and they asked me if my house was for sale. Does this mean they will not give you the loan if the house is for sale or do they just need to know for their records? If you sell the house you have money to pay them.

Comments

  • MEM62
    MEM62 Posts: 5,607 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you sell the house their security is gone!
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    MEM62 wrote: »
    If you sell the house their security is gone!
    If they do their job right they will ensure sufficient equity to cover their loan plus register the charge on the property BEFORE they release the money.
    They are then safeguarded.
  • TadleyBaggie
    TadleyBaggie Posts: 7,149 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    freddieD wrote: »
    f you sell the house you have money to pay them.
    Not always, depends on how much you owe on the mortgage and what the selling price is.
  • freddieD
    freddieD Posts: 64 Forumite
    TadleyBaggie wrote: »
    Not always, depends on how much you owe on the mortgage and what the selling price is.

    I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.
  • scaredlady
    scaredlady Posts: 132 Forumite
    Part of the Furniture Combo Breaker
    freddieD wrote: »
    I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.

    So if they have rip off fees why are you using them.
    Find some one who does not charge rip off fees.
    Or is it that the only lender who will agree charges a higher rate of interest.
  • TadleyBaggie
    TadleyBaggie Posts: 7,149 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    freddieD wrote: »
    I was not talking about always, only my own situation. There is plenty to pay them the loan and their rip-off fees.

    The way you worded made it sound generic:
    If you sell the house you have money to pay them.

    If you had said "If I sell the house I will have money to pay them" it would have been clearer what you were trying to say.
This discussion has been closed.
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