Credit card company placing a charge against my property

kimwp

MEM62 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?

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.   

Wholeheartedly agree with this. You would be risking them losing their house when you have ways out of this by yourself.

runforlife

Re a new mortgage. Possible word of warning.  Our mortgage broker has been unable to use my self employed income history because I am unable to work due to lockdown. Saying that lenders are really only interested in the ‘now’ rather then the past. Fortunately our household income is still sufficient and I’ll be back at work on 12 April . 

jimjames

zzyzx1221 said:

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.

It's actually much higher. I've had zero assistance from government and don't know any of my friends that have received anything either