Linking a credit card debt to my mortgage?!

Octopus7

Hi,

Sorry if this is in the wrong section, I am new here!

I took a credit card out years ago with Lloyds TSB. For one reason and another, I have not paid this for almost 2 years (I know this is wrong but I have my reasons so don't need another lecture! Sorry to be abrupt, I don't mean to be.)

I have recently received a letter to say that they are applying to secure the debt against my house. The letter said I do not have to sell my house but if I ever come to voluntarily sell it, they'll take the £2,000 from the sale money.

Can you they do this even though it was unsecured?

Thanks in advance :beer:

[Deleted User]

Yes it can be done.

Any chance you can raise the £2k, to clear the debt?

Octopus7

Bedsit_Bob wrote: »

Yes it can be done.

Any chance you can raise the £2k, to clear the debt?

Unfortunately not. Is it just credit cards they can do this with or other debts too? Not that I have any... I just wondered if this was specific to a credit card

[Deleted User]

Pretty much any debt can be secured against the house.

It's called putting a charge on the property.

Pixie5740

It used to be the case that when the borrower was unable to make the repayments the lender would issue a default notice. If this didn't work the lender could apply for a CCJ to enforce repayment. Only when the borrower failed to stick to the terms of the CCJ could the creditor apply to secure the debt against their home.

The government decided to "streamline" this process in 2012 (I think) and lenders were able to skip the court bit and go straight to the charging order.

[Deleted User]

They can't exactly "skip the court bit", as they have to apply to the court, for a charging order.

Thrugelmir

Octopus7 wrote: »

Can you they do this even though it was unsecured?

You have assets. So one way or another they'll recover the debt. Irrespective of your financial circumstances.

CLAPTON

this may be useful


http://www.thisismoney.co.uk/money/cardsloans/article-2211657/Lenders-given-fast-track-make-charge-borrowers-homes-unpaid-debts.html

stator

Have you offered a repayment plan? Might convince them not to apply for the charge.

bengal-stripe

Octopus7 wrote: »

Hi,

For one reason and another, I have not paid this for almost 2 years (I know this is wrong but I have my reasons so don't need another lecture!)

If you displayed that same eff-off attitude towards the bank, who can blame them pulling out all the guns to go after you?