Can you have 2x secured loans on one property???

Luk_on_the_brightside

Hi :A

My mother has one small secured loan on her property, she wanted to borrow more on top of loan she already has - but the firm have suspended all secured loans for a short time. I was wondering if she could apply for a second secured loan with a different lender??

Thanks

spaceman5

i have no idea if you can get 2 different secured loans on the same property i am afraid, but it does not sound too good if the company your mum is already with, has stopped lending money, do you mean stopped lending money to just your mum, or everybody in general, cause if they have stopped lending to everybody, sounds to me, like they may be in a bit of trouble.

Luk_on_the_brightside

spaceman5 wrote: »

i have no idea if you can get 2 different secured loans on the same property i am afraid, but it does not sound too good if the company your mum is already with, has stopped lending money, do you mean stopped lending money to just your mum, or everybody in general, cause if they have stopped lending to everybody, sounds to me, like they may be in a bit of trouble.

Yeh, something fishy there!! They have suspended all loans to everyone:rolleyes:

loveandlight

I think as long as there is sufficient equity in the property, you can have more than one secured loan.

PeteJones

You can get another secured loan on your property. The current secured loan is a second charge (behind the mortgage which is first charge). The only problem is that to get a third charge, you are looking at Welcome, Black Horse or the like. V Expensive.

Sounds like current secured loan is with Picture Finance. They have suspended lending because they do not have any money to lend! They had a backer (American I believe) who will not give them any more money, so they are searching for a rich sugar daddy to bank roll them.

Have you thought about calling Picture (if that who it is) and asking what the redemption figure would be, if more than borrowed in the first place, tell them that you want a further advance. I'm sure that when the credit agreement was signed, they said that further advances would be available. As they are not, they are breaking their end of the agreement, therefore if you need to move the loan elsewhere to obtain the extra you are looking for, they shouldn't penalise you! - Worth a try anyway!!!!

AMILLIONDOLLARS

Secured loan as often seen as the last resort, has your mother tried other routes, a personal loan from her bank? If she is having money problems why not direct her to the debt free wannbe board, they have loads of hint & tips on budgeting and reducing debts. Pop over there before she borrows more trouble as Picture, Ocean, Welcome Finance are bad news when it comes to using their services

AMD

Luk_on_the_brightside

AMILLIONDOLLARS wrote: »

Secured loan as often seen as the last resort, has your mother tried other routes, a personal loan from her bank? If she is having money problems why not direct her to the debt free wannbe board, they have loads of hint & tips on budgeting and reducing debts. Pop over there before she borrows more trouble as Picture, Ocean, Welcome Finance are bad news when it comes to using their services

AMD

She isnt having money problems;) she just wants to borrow for improvements, and is hoping to sell up to move abroad this year. her current secured loan co have stopped borrowing for what ever reasons i dont know.

AMILLIONDOLLARS

Luk

You must remember that most of these loans have their interest front loaded, so she could end up owing more than she borrowed, if she wants to borrow the money on a short term basis,this form of borrowing may not be ideal, it not unheard of of someone borrowing £40K and end up owing £70K because of interest charges. Interest payments are cleared first. She must also consider redemption fees these can also be sky high on these loan.

She needs to get a personal loan, that will allow for overpayments and penalty free early repayment. You can borrow up £25,000 on personal loans if your rating is good, so this should cover most home improvements

Good luck