Confused over Secured Loan with WF

Marley80

Hi all,


I recently posted as I am having issues with a defaulted secured loan I have with Welcome Finance. Thanks to your advice, I did a SAR request and a CCA request both of which have been received now.


Looking at the information and having done lots of late night reading this past month, one thing stands out (well lots but this one mainly), I stupidly took out a 125% mortgage (together loan with NR) out to purchase my house in 2006, on this basis there was no equity whatsoever in the flat when I applied for the secured loan with WF six months later.


Surely there needs to be equity in the property in the first place to secure a loan against it? I note from the SAR that they did a property check and based the valuation of my house on one in the same street but at least twice the size so no where the correct valuation.


They have also filled out a box "customers estimate" I don't know where this figure has came from, I never gave them it anyway but its (conveniently?) much higher than I bought my house for.


I am just trying to grasp where I stand with this loan, I am still paying and intend to keep doing so but having a secured loan with a DCA is causing me issues getting a new mortgage deal.

Any advice?

National_Debtline

Hi Marley80,


You may need some legal advice on this if you have concerns about the Welcome loan. If you signed the documents then you are accepting it to be correct and that could include the 'customers estimate'.


I have looked at your other posts and from what you have described, you appear to be describing a personal loan, that defaulted and a CCJ was obtained followed by a charging order, giving them the security on the house and explaining why there has been no talk of repossession. With a charging order there can be a threat of an order for sale, but this is rare - especially with payments. But with a secured loan (that has always been secured) it is quite rare for them to accept less than the contractual payment without talk of repossession.


I think you should try taking your paperwork to a face to face legal advisor at this stage because the advice will be different depending on the type of loan, and once you iron this out, hopefully you can sort out re-mortgaging/ moving.


Laura
@natdebtline

Marley80

Hi Laura,


thanks for your reply. This is not the case, it has always been a secured loan, never a personal loan, I defaulted years ago and currently make a minimum monthly payment each month to a DCA but I've never been issued with a default notice let alone a CCJ as well as this the loan is not showing on my credit file at all but it is registered on my property. None of it makes sense to me.

National_Debtline

I am afraid it does seem like an unusual situation. If you are sure it is secured then the best thing I can suggest is that you ensure it is a repayment mortgage, and that you pay the normal payments plus more for any arrears and you will need to clear the arrears before the mortgage term finishes. Or if it is interest only you may need some financial advice about getting a repayment vehicle in place for when the term finishes.


If you think the loan was mis-sold in anyway then you can complain and escalate to the Financial Ombudsman, but, again, I think some legal advice would be useful before doing this - especially if they are not being aggressive about the arrears.


Laura
@natdebtline

fatbelly

Marley80 wrote: »

Hi all,


I recently posted as I am having issues with a defaulted secured loan I have with Welcome Finance. Thanks to your advice, I did a SAR request and a CCA request both of which have been received now.


Looking at the information and having done lots of late night reading this past month, one thing stands out (well lots but this one mainly), I stupidly took out a 125% mortgage (together loan with NR) out to purchase my house in 2006, on this basis there was no equity whatsoever in the flat when I applied for the secured loan with WF six months later.


Surely there needs to be equity in the property in the first place to secure a loan against it? I note from the SAR that they did a property check and based the valuation of my house on one in the same street but at least twice the size so no where the correct valuation.


They have also filled out a box "customers estimate" I don't know where this figure has came from, I never gave them it anyway but its (conveniently?) much higher than I bought my house for.


I am just trying to grasp where I stand with this loan, I am still paying and intend to keep doing so but having a secured loan with a DCA is causing me issues getting a new mortgage deal.

Any advice?

Marley80 wrote: »

... it has always been a secured loan, never a personal loan, I defaulted years ago and currently make a minimum monthly payment each month to a DCA but I've never been issued with a default notice let alone a CCJ as well as this the loan is not showing on my credit file at all but it is registered on my property. None of it makes sense to me.

Hi

It would have been better to keep all this in one thread but never mind.

So it's a secured loan and you're making monthly payments. It's registered as a full charge at the Land Registry. It doesn't have to appear on your credit file

On the face of it, if you want it removed you are going to have to pay it off, perhaps by a settlement deal, perhaps with the help of a solicitor.

If you want to challenge it you are going to need a specialist to look at the paperwork you have. I doubt we are going to be able to do anything much in that area in this forum.

As we are all saying, there is something odd about it but we are not going to be able to tell you what that is.