Help to Buy - Secured Loan

DanMc52

Hello

I’m just wondering if anyone has experience of a ‘third’ charge loan. I’m looking to consolidate some debts before remortgaging to pay off my HTB and a secured loan is my only option due to the sums involved.

I understand that the scheme administrator can object to a third charge, but I wonder how often this happens in practise, as the HTB sits as a second charge and therefore if the worst came to the worst, they’d be ahead of the secured lender for repayment.

thanks in advance 

K_S

@danmc52 I'm going to use the term 'second-charge' loan here just to keep things consistent.

Most second-charge lenders will not lend on H2B properties. 

A few will and afaik they don't need to take consent from the lender or H2B to put their charge (effectively a 'third charge' as you rightly mention). Bad-credit debt-con is almost always one of the reasons that will be considered.

I want to point out here that the above is simply a comment on the mechanics of getting a second charge debt-con loan on an H2B property, not the pros/cons of converting unsecured debt to secured against the house you live in.