Charging Order

kaznelson

Hi, Hope someone can give me some much needed advice.

After a very bad business decision in choosing a wrong Business Partner and after a very long & expensive Court Case I have unfortunately had a Chaging Order on my home for £10k.  I have an instalment arrangement and make monthly payments on a regular basis.

Would this Charging Order appear on my Credit File? Ive been informed by my Mortgage Provider that I cant borrow any more money to carry out any home improvements unless the Creditor allow this (I doubt this) (Home is worth 180K, Mortgage of 55K plus Charge of 10k)

Would I be more wise to borrow money and pay off the Charge. (Statutory interest 8% is being added) Pride is preventing me at the moment. And would I be able to get Credit with having a Charge? Catch 22 or not?

Hope you can help.

[Deleted User]

As you are probably aware, a Charging Order is a Court Order to enforce a County Court judgement made in favour of a creditor to whom you owe money. The purpose of the Order is to give the creditor some surety for the debt.

From the creditors point of view - it makes no difference how you clear the debt. Apart from the fact they will no longer be getting 8% interest on it.

I am not sure if a CO affects your credit file but would imagine that it does. You can check your credit file with Experian for £2.

If you now have a steady and proveable income you might be best trying for an unsecured loan (which will be at a lower rate of interest) to clear the CO.

If you do clear the CO you still need to apply to the Court to get the CO formally discharged (the Court will advise you which forms to use). You will need to supply evidence of the fact the amount has now been paid.

Don't forget also you need to get the file for your house updated at the Land Registry as the CO will be recorded there too.