Credit card company placing a charge against my property

ChrisZX

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

My question is, is this legal them securing the debt against my property when the Barclaycard credit card was taken out as an unsecured debt and at a high rate of interest because of this. I had the card around a decade paying it off in full monthly until the business went downhill. They are effectively changing an unsecured debt to secured after the event and this is not something I signed up to. Are they just chancing it and hoping I allow this to be lodged with the court without objection so they can get the money back? I have 30 days to reject it, but then they may come after the money earlier anyway when I was hoping to get to the end of the year and back on my feet. If it wasn't for my need to remortgage just as this has come through I wouldn't mind, as I fully intend to pay it back it's just that due to Covid I have no way of doing it right now.

Well, there would be little point in charging orders existing if they couldn't be used on unsecured debts as secured debt, by definition, already has a charge on something.

Well I would have thought this was the process carried out for a secured debt, not an unsecured one, hence my question. My previous low offers of repayment have been refused. Had my income not been so massively impacted this year I could have paid it off in full as I had arranged with them but I have been unable to do it. I've had 4 years of employment upheaval and a divorce to deal with so my household income has dropped from around £80K to £12K in that time and all savings have gone.

You mention this is stoping you remortgaging but was that ever really on the cards anyway with a 6 month mortgage holiday being taken?

Couldn't you just change the deal with your existing mortgage provider?

I had to take a 6 month mortgage holiday due to no income coming in for 5 months. I started a new business in January and put what money I had into it, not knowing that by March we would be in lockdown and contracts that were due to be signed were delayed a few months as nobody wanted to commit. Things have picked up considerably since then but it's put me in a massive financial hole. My first years profits are going to show I've earned less than in my first job after leaving school 40 years ago. Not much use for a mortgage application but my parents are going to act as guarantor. I may well end up with a deal with my current lender but I need additional borrowing to clear the debts.

I doubt you're going to get additional lending with your current financial situation.

It's going to be difficult but I'm just hoping that my previous record of earnings and never any other mortgage payments missed will allow them to see that this is a massive hit due to Covid. There's now about 3.8 million people who have been given zero assistance by the government during this time and it's shocking. So many are losing their homes and if this carries on I can see me being one of them despite me having 75% equity in my property but I don't seem to be able to access any of it and time is marching on with us still locked down. 

zzyzx1221

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

My question is, is this legal them securing the debt against my property when the Barclaycard credit card was taken out as an unsecured debt and at a high rate of interest because of this. I had the card around a decade paying it off in full monthly until the business went downhill. They are effectively changing an unsecured debt to secured after the event and this is not something I signed up to. Are they just chancing it and hoping I allow this to be lodged with the court without objection so they can get the money back? I have 30 days to reject it, but then they may come after the money earlier anyway when I was hoping to get to the end of the year and back on my feet. If it wasn't for my need to remortgage just as this has come through I wouldn't mind, as I fully intend to pay it back it's just that due to Covid I have no way of doing it right now.

Well, there would be little point in charging orders existing if they couldn't be used on unsecured debts as secured debt, by definition, already has a charge on something.

Well I would have thought this was the process carried out for a secured debt, not an unsecured one, hence my question. My previous low offers of repayment have been refused. Had my income not been so massively impacted this year I could have paid it off in full as I had arranged with them but I have been unable to do it. I've had 4 years of employment upheaval and a divorce to deal with so my household income has dropped from around £80K to £12K in that time and all savings have gone.

You mention this is stoping you remortgaging but was that ever really on the cards anyway with a 6 month mortgage holiday being taken?

Couldn't you just change the deal with your existing mortgage provider?

I had to take a 6 month mortgage holiday due to no income coming in for 5 months. I started a new business in January and put what money I had into it, not knowing that by March we would be in lockdown and contracts that were due to be signed were delayed a few months as nobody wanted to commit. Things have picked up considerably since then but it's put me in a massive financial hole. My first years profits are going to show I've earned less than in my first job after leaving school 40 years ago. Not much use for a mortgage application but my parents are going to act as guarantor. I may well end up with a deal with my current lender but I need additional borrowing to clear the debts.

I doubt you're going to get additional lending with your current financial situation.

There's now about 3.8 million people who have been given zero assistance by the government during this time and it's shocking. 

There's not.  Please don't quote that complete fabrication by Excluded.

zzyzx1221

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

My question is, is this legal them securing the debt against my property when the Barclaycard credit card was taken out as an unsecured debt and at a high rate of interest because of this. I had the card around a decade paying it off in full monthly until the business went downhill. They are effectively changing an unsecured debt to secured after the event and this is not something I signed up to. Are they just chancing it and hoping I allow this to be lodged with the court without objection so they can get the money back? I have 30 days to reject it, but then they may come after the money earlier anyway when I was hoping to get to the end of the year and back on my feet. If it wasn't for my need to remortgage just as this has come through I wouldn't mind, as I fully intend to pay it back it's just that due to Covid I have no way of doing it right now.

Well, there would be little point in charging orders existing if they couldn't be used on unsecured debts as secured debt, by definition, already has a charge on something.

Well I would have thought this was the process carried out for a secured debt, not an unsecured one, hence my question. My previous low offers of repayment have been refused. Had my income not been so massively impacted this year I could have paid it off in full as I had arranged with them but I have been unable to do it. I've had 4 years of employment upheaval and a divorce to deal with so my household income has dropped from around £80K to £12K in that time and all savings have gone.

You mention this is stoping you remortgaging but was that ever really on the cards anyway with a 6 month mortgage holiday being taken?

Couldn't you just change the deal with your existing mortgage provider?

I had to take a 6 month mortgage holiday due to no income coming in for 5 months. I started a new business in January and put what money I had into it, not knowing that by March we would be in lockdown and contracts that were due to be signed were delayed a few months as nobody wanted to commit. Things have picked up considerably since then but it's put me in a massive financial hole. My first years profits are going to show I've earned less than in my first job after leaving school 40 years ago. Not much use for a mortgage application but my parents are going to act as guarantor. I may well end up with a deal with my current lender but I need additional borrowing to clear the debts.

I doubt you're going to get additional lending with your current financial situation.

So many are losing their homes and if this carries on I can see me being one of them despite me having 75% equity in my property but I don't seem to be able to access any of it and time is marching on with us still locked down. 

You do have access to it. Sell the property.

cymruchris

Yes - it happened to me prior to bankruptcy a few years ago. RBS put a charge against my property, and they were paid when the flat was sold by the Official receiver. At the time, just like I you, didn't think they could do it - but they could and did. It might be worthwhile selling up now while you have full control of the situation, if you don't see income returning for the immediate future, get into renting, and then revisit the house purchase at a time when you're back on your feet. The last thing you want is for the house to be repossessed and them to be in control of selling it. Do you have much equity in the property?

born_again

ChrisZX said:

It's going to be difficult but I'm just hoping that my previous record of earnings and never any other mortgage payments missed will allow them to see that this is a massive hit due to Covid.

Trouble is you are now running a business, so your history is not really going to help, as it has no bearing on your current situation. I would expect any new lender to want to see your accounts. Which you admit are not good. Many want several years.
So you are really in the hands of your current provider, who may look at previous history. But that is going to depend on their risk appetite. Especially given your current debts.

Good luck.

[Deleted User]

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

My question is, is this legal them securing the debt against my property when the Barclaycard credit card was taken out as an unsecured debt and at a high rate of interest because of this. I had the card around a decade paying it off in full monthly until the business went downhill. They are effectively changing an unsecured debt to secured after the event and this is not something I signed up to. Are they just chancing it and hoping I allow this to be lodged with the court without objection so they can get the money back? I have 30 days to reject it, but then they may come after the money earlier anyway when I was hoping to get to the end of the year and back on my feet. If it wasn't for my need to remortgage just as this has come through I wouldn't mind, as I fully intend to pay it back it's just that due to Covid I have no way of doing it right now.

Well, there would be little point in charging orders existing if they couldn't be used on unsecured debts as secured debt, by definition, already has a charge on something.

Well I would have thought this was the process carried out for a secured debt, not an unsecured one, hence my question. My previous low offers of repayment have been refused. Had my income not been so massively impacted this year I could have paid it off in full as I had arranged with them but I have been unable to do it. I've had 4 years of employment upheaval and a divorce to deal with so my household income has dropped from around £80K to £12K in that time and all savings have gone.

You mention this is stoping you remortgaging but was that ever really on the cards anyway with a 6 month mortgage holiday being taken?

Couldn't you just change the deal with your existing mortgage provider?

I had to take a 6 month mortgage holiday due to no income coming in for 5 months. I started a new business in January and put what money I had into it, not knowing that by March we would be in lockdown and contracts that were due to be signed were delayed a few months as nobody wanted to commit. Things have picked up considerably since then but it's put me in a massive financial hole. My first years profits are going to show I've earned less than in my first job after leaving school 40 years ago. Not much use for a mortgage application but my parents are going to act as guarantor. I may well end up with a deal with my current lender but I need additional borrowing to clear the debts.

I doubt you're going to get additional lending with your current financial situation.

It's going to be difficult but I'm just hoping that my previous record of earnings and never any other mortgage payments missed will allow them to see that this is a massive hit due to Covid. There's now about 3.8 million people who have been given zero assistance by the government during this time and it's shocking. So many are losing their homes and if this carries on I can see me being one of them despite me having 75% equity in my property but I don't seem to be able to access any of it and time is marching on with us still locked down. 

Do you have any evidence of this? FT say 450,000 are in housing debt (that includes both mortgage and rent) out of 750,000 in arrears. Who has lost their home as a mortgage holder? Mortgage lenders are banned from enforcing repossessions at least until 31/1/21 and the lenders are largely in agreement to not enforce anything until 1/4/21

MEM62

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

zzyzx1221 said:

ChrisZX said:

My question is, is this legal them securing the debt against my property when the Barclaycard credit card was taken out as an unsecured debt and at a high rate of interest because of this. I had the card around a decade paying it off in full monthly until the business went downhill. They are effectively changing an unsecured debt to secured after the event and this is not something I signed up to. Are they just chancing it and hoping I allow this to be lodged with the court without objection so they can get the money back? I have 30 days to reject it, but then they may come after the money earlier anyway when I was hoping to get to the end of the year and back on my feet. If it wasn't for my need to remortgage just as this has come through I wouldn't mind, as I fully intend to pay it back it's just that due to Covid I have no way of doing it right now.

Well, there would be little point in charging orders existing if they couldn't be used on unsecured debts as secured debt, by definition, already has a charge on something.

Well I would have thought this was the process carried out for a secured debt, not an unsecured one, hence my question. My previous low offers of repayment have been refused. Had my income not been so massively impacted this year I could have paid it off in full as I had arranged with them but I have been unable to do it. I've had 4 years of employment upheaval and a divorce to deal with so my household income has dropped from around £80K to £12K in that time and all savings have gone.

You mention this is stoping you remortgaging but was that ever really on the cards anyway with a 6 month mortgage holiday being taken?

Couldn't you just change the deal with your existing mortgage provider?

Not much use for a mortgage application but my parents are going to act as guarantor. 

I would strongly recommend against dragging you parents into your financial woes.   

sourcrates

Is the property just in your name, or is it jointly owned ?
A charging order can only be made against a house solely in your name, otherwise it just becomes a restriction.

Some info here -
Fact Sheet - Charging orders | National Debtline | National Debtline

DjangoUnchained

you say you have 75% equity in your property. Would you consider selling it and buying something cheaper/smaller/ different area. I say this as i was in similar position many years ago. It was the best thing i ever done. Bought a slightly bigger place in a less expensive but still nice area, Meant i was mortgage free and able to tackle all the debts, As soon as we moved in we had good nights sleeps then on. it was a hard decision because we felt as though we failed , but so happy now, hardly any debts left, no mortgage to pay and able to enjoy life.

Bizzywizard

I'm with DangoUnchained on this one.
Sell the property clear the charge and go into rented or if on your own move back in with family. Sell soon so a buyer can benefit from the stamp duty saving, as once this has gone, I can see the property market fading fast. I was an Estate Agents many years ago and the amount of repossessed properties back then was was heart breaking, I do believe this is coming sooner rather than later again, as Covid has ruined many lives.