Restriction on my home for a debt owed by late brother who died 13 years ago

Minky23

My brother died in September 2010.  Without my knowledge he had taken out an unsecured  loan with Sainsburys Bank in 2005. I 2007 I added him to the mortgage which had been in my name only. The debt was sold on in 2008 Marlin and then again in 2014 to  MCE Portfolios Ltd , which is owned by Cabot Financial. My mortgage had come to an end and I secured a mortgage but when we came to completion it came to late that there is a restriction against the property.  The solicitors dealing with this debt is Mortimer Clarke. During the near 13 years since my brothers death not one form contact has been.  I have discovered that unsecured loan is now a secured loan against my home and I am the verge of losing my home of over 40 years because Mortimer Clarke are not prepared to try to resolve the issue and demanding £35,404. They say that I am not personally liable for the debt.  I had to apply for probate because I paid for my brother's funeral because as far as I was aware he didnt have any money but because when the loan became secured  a restriction was placed on my home. No one can tell me what the original loan amount was, did he pay anything on the loan, how did he get a loan when he wasnt earning enough as a youth worker.

The bottom line is the mortgage is due in end in 2 weeks and I am now in danger of losing my home that I have lived in for 40 years which will also mean the 13 year old I am fostering will have to move somewhere else.  I dont know what to do. I have a solicitor and paid money I cant offered but we dont seem to getting anywhere fast.  Any advice would be greatly appreciated.

p00hsticks

Minky23 said:

 I 2007 I added him to the mortgage which had been in my name only. 

Can you please clarify in whose name the property was and is ? 

p00hsticks

Minky23 said:

 I had to apply for probate because I paid for my brother's funeral because as far as I was aware he didnt have any money but because when the loan became secured  a restriction was placed on my home. 

Why did you have to apply for probate if he had no money (did you hold the property in joint names ?)

Sorry to be asking these questions; it sounds a dreadful situation for you to be in and you have my sympathy, but I'm struggling to understand how someone can get a loan secured on the property without your knowledge unless your brother was named on the deeds as well. 

sourcrates

We have a Land Registry Rep on this thread, they are always keen to answer questions, Mortimer Clarke have been mentioned a lot just lately -

Charging Order? The myth - Page 485 — MoneySavingExpert Forum

silvercar

Sorry you are in this situation.

What was the reason for adding your brother to the mortgage in 2007? Presumably you also added him to the house and this was registered with Land Registry. Please confirm if this is the case

So in 2007 you had a joint mortgage and jointly owned the property. Your brother then defaults on the sainsbury loan and they put a charging order on the property in order to secure the loan. Again can you confirm if this is the case.

Now you are in the situation where the lender won't agree to a mortgage because of the charging order. Would they agree a deed of postponement? This would put them in second place behind the new mortgage, the problem is that it may be acknowledging the debt by doing so. So you need to check this out first.

Charging orders on jointly owned property can work in different ways, I don't know if on sale that loan would be repayable.

---

Another option is to take a new mortgage deal with the current lender, that won't have the problem created by changing lenders as they already have first charge on the property.

Fighter1986

In addition to the above, can you please clarify if your Fixed Rate is coming to an end, or your Mortgage Term?

Do you have an interest only or repayment mortgage?

If it's simply a matter of your fixed rate coming to an end you aren't going to lose your house at all, you'll just have to pay a bit more on your monthly mortgage repayments; having said that if your fixed rate is coming to an end fixing with the same lender for another five years shouldn't involve any credit assessments of you at all. 

Catsacor

@Minky23 update your thread please, you were last active 2 days ago so please provide the information requested so that accurate information can be given to you.
The more vague a thread the more likely you'll get non relevant answers.