Transferring Secured Loan

andynclaire

Has anyone else managed to transfer a secured loan onto their new property? We currently have a loan with First Plus which has £27k outstanding (originally for £33k) and we cannot pay it back in full from the sale of the house so will have to transfer it. Looking into this today it appears they have to go through the process again as if it was a new application which means a credit check. This is where I am panicking. My partner has a brilliant credit history where I do not. I have 4 defaults from 2010 when I entered into a debt management plan. All have been paid since 2011. As this is a joint loan I am now financially associated with him so even if he applied again as a sole applicant which he is able to do it will still check my credit file. I am really worried this is going to go all wrong because of my credit history. Can we get past this with my credit problems?

Thrugelmir

Your'll be credit checked on the new mortgage not just the secured loan. When did your DMP end?

andynclaire

It ended Nov 2011 when I paid everything off in full. I believe the credit check for the mortgage has gone ok. The mortgage is in my partners name only as Halifax was the only lender we could get.

Thrugelmir

You won't be able to transfer the secured loan unless you are named on both the mortgage and the title deeds.

andynclaire

Would that apply if we changed the secure loan into a sole name like the mortgage will be?

Thrugelmir

You may find the lender of the unsecured debt unwilling to play ball.

amnblog

Why would First Plus will allow you to sell the house if there is insufficient value to cover their loan and your mortgage?

andynclaire

there is enough money. We have £114k equity in our home and will have £130k equity in the new home but we can only get a mortgage for £100k so the rest has been gifted by my parents however we cannot raise enough if we repaid the loan from the house sale

TrickyDicky101

You may find that mortgage lenders don't like the idea of you having a mortgage with them and additionally a further secured loan on any new purchase. It sounds to me as if you will have to moderate your expectations and look to a cheaper property so you can get rid of the SL altogether.

Thrugelmir

andynclaire wrote: »

there is enough money. We have £114k equity in our home and will have £130k equity in the new home but we can only get a mortgage for £100k so the rest has been gifted by my parents however we cannot raise enough if we repaid the loan from the house sale

Put your plans on hold for a while, and focus on reducing your indebtedness.