Second charge on my mortgage

Tansy_1980

OP, I'd suggest getting advice from Housing Rights or Citizens Advice about this issue. You could find that the outstanding balance on your loan is now much, much more than the £5K you originally borrowed. You will not be able to sell your home until this second charge is dealt with, and you may even find that there isn't sufficient equity in your home to discharge both this loan and the mortgage from the proceeds of any sale.

So, try to dig out your original paperwork. If 12 years have passed since you've had any acknowledgement of the loan or have made any repayments, it may even be statute barred, but this is the kind of thing you need to get advice on. The fact that it may be statute barred doesn't mean that the debt no longer exists. It just changes the method by which it can be recovered. You should definitely speak to someone who can provide you free, independent advice on mortgage debt.

macman

I fail to see why the OP needs a solicitor at this point. And the CAB will not have a clue on this. As pointed out above, what the OP needs to do first and foremost is get a statement from the lender to establish what is owed. If there is a charging order in place then a solicitor isn't going to be able to magic it away until the debt is repaid.
OP, it doesn't actually stop you from selling: it just means that your conveyancer will have to deduct the debt from the sale proceeds and pass it to the creditor upon completion The issue is whether that then means that you do not have sufficient funds for your new property.
The default has dropped off your credit history after 6 years, but this does not affect the charging order.