Being chased for secured loan on house that's sold

MumtoJess

Hi everyone

I'm hoping that someone can point me in the right direction here please.

I had a secured loan with Welcome Finance back many years ago and the house has been sold roughly 10 years ago.

I am now being chased for a £2,000 bill for that loan which was paid off when the funds were received for the house. Obviously the house can't be sold without the secured loan being paid.

Am I right in assuming that the debt is at least statute barred because of the six year rule and in any event I don't believe I owe it!

I want to construct a letter but thought I'd ask for guidance first.

Thank you!

Mum to Jess

fermi

Depends exactly what the shortfall was for.

Please read this link --> Mortgage shortfalls

Then in your circumstance I think I would ring National Debtline on 0808 808 4000b to talk through with someone what exactly applies here and what you can do.

National_Debtline

Hello there,

Thank you to Fermi for posting a link to our fact sheet, it's certainly worth a read. In this instance you may wish to send a letter to the lender requesting a breakdown. We have a sample letter that asks for this and also further information around the sale of the property. Please do amend it so that it is tailroed to meet your circumstances:

https://www.nationaldebtline.org/EW/factsheets/Pages/11%20EW%20Mortgage%20shortfalls/Page-09.aspx

Secured loans have a limitation period of 12 years although they would only be able to claim interest from the last six years.

It does seem strange that the loan was not paid when the house was sold, so you are right to investigate this. You are more than welcome to drop us a line should there be any help and assistance that you need.

Very best wishes,

David @ NDL.