Coast / Welcome

bobk1984

Im looking for a little (Or a lot) of help

in 2007 I purchased a house under a Goverment Funded Co-Ownership scheme, then later in 2007 I took out a loan with welcome. (it had been refinanced a number of times over the years and now refinanced in to a secured loan) I couldnt afford the repayments, and after being young and stupid for a while I decided I would try and get my finances back on track, and made a payment arrangement with them, Which was fine until COAST took over the loan.

The numbers -
Original Loan Amount 20000 (just shy of)
Paid So Far 20045
Balance 15900 (&Change)
Of which £10k is arrears.

Since then, Ive gone back over the documentation with my mortgage company, and co-ownership scheme, and not knowing (and reading, young, stupid) at the time its prohibited to take out a secured loan on a property. The property is also substantially in negative equity.(valued at around 60% of original purcahse price) Welcome had these documents at the time (to the best of my knowelge) so did they loan in bad faith?

Coast have now made me aware that they may take legal proceedings to recover the debt, But Ive managed to get them to agree a formal arrangement for a few months.

Ive also noticed they have just appeared on my credit file, so no doubt all my good hard work will be sacrificed now.

Since then, Ive got married, Moved out of that house, (its now rented because it cant be sold) and moved in to my wifes house. to whom I pay rent. (rental of the original property covers most of its own costs) and we have not long had a baby, so needless to say this couldnt have come at a worse time and Im a bit worried.

Ive requested a copy of the original agreement from Coast, as I can not find the original


Any advice on what to do?

[Deleted User]

They didn't lend in bad faith, but it seems you borrowed in bad faith, knowing it wasn't permitted by your mortgage lender. I would try to hide that fact.

Best advice is to get it cleared as soon as you can so it shows as settled. Time will fix the rest.

bobk1984

Yeah, I thought that might have been the answer, But at the time, I was stupid and never read the documents completely. Was just happy to have a house.


Clearing it off it is.


I just hope I can clear it off sooner rather than later.

DCFC79

I'm sure your aware but your is at risk if you don't stick to the agreement.

bobk1984

I take it thats also the case if no agreement is come too? For example, An agreement is now in place, for the next 3 months. What if they decide not to keep it up?

[Deleted User]

Once you broke the agreement, any subsequent arrangement is subject to review.

But if you're seen to be making an effort to repay, they are unlikely to go to the next step.

DCFC79

bobk1984 wrote: »

I take it thats also the case if no agreement is come too? For example, An agreement is now in place, for the next 3 months. What if they decide not to keep it up?

Its as zx81 says, your making an effort to keep to what you agreed.

bobk1984

So... Long and short of it, now that they have entered into this agreement for 3 months, If I am willing to keep to that agreement and not fail it there shouldnt be an issue?

The reason I ask is because the person I spoke to on the phone said that it will need to be reviewed in 3 months, and wont definintely be accepted moving forward.


Surely thats them breaking the agreement and not me in that scenario? Because im willing to keep moving forward?


My Main point being, that this agreement has been in place for a number of years, Before they purchased the account, So I have kept to my agreement all this time.


I was just about to hit 6 years of no red marks on my credit file too