My secured loan has been sold, does the new company still hold the security on my house?

Ronald1971 · 25 May 2018 at 5:37PM

Afternoon all,

I've just received a letter from Welcome Finance stating that my loan has been sold to Coast Finance Solutions. The balance outstanding is quite substantial and I had an agreement with Welcome for them to hold the interest and I paid a set amount as the loan was secured on my house and it was in negative equity so they basically took what they could get and, in all honesty I played this somewhat.

I know that I will have to probably revert to the contractual payment with the company that now own the debt but I'm wondering if the debt will still be secured on my house? Can anyone enlighten me further please?

Thrugelmir · 25 May 2018 at 5:38PM

Nothing will change. Other than the ownership of the debt.

[Deleted User] · 25 May 2018 at 5:38PM

Yes - the loan remains the same, just a different owner.

Ronald1971 · 25 May 2018 at 5:58PM

Thank you....

smc123 · 26 May 2018 at 7:17PM

Hi

Just to confirm I to have been informed by Welcome Finance that my account has been sold to Coast Financial Solutions.

Also interesting I to have a zero percent interest agreement due to the account being in very long term Serious Dispute which has never been resolved so really do not understand how Welcome could sell my account.

Another worrying fact is that the purchaser is based abroad but has a PO Box in Newport.

Can anybody advise or help us.

Many THANKS

John_Jones · 28 May 2018 at 8:47PM

smc123 wrote: »

Hi

Just to confirm I to have been informed by Welcome Finance that my account has been sold to Coast Financial Solutions.

Also interesting I to have a zero percent interest agreement due to the account being in very long term Serious Dispute which has never been resolved so really do not understand how Welcome could sell my account.

Another worrying fact is that the purchaser is based abroad but has a PO Box in Newport.

Can anybody advise or help us.

Many THANKS

Companies are able to assign their rights under a contract, but not their obligations. Just keep paying in line with your original agreement.

mgt1978 · 1 June 2018 at 10:11AM

Good morning I was wondering if anyone can help. I have a secured loan with Welcome which was taken out in 2005. We paid £312 for yrs and nothing came off the original £20.000 that we borrowed. Anyway 4 yrs ago they agreed to freeze the interest and put us on a £20 payment plan, I had a letter yesterday off Coast confirming that they have bought my account and the debt stands at 22000. I am really worried because it says that they can set their own interest rates and also share information with credit reference agencys. I have just started building my file up and can't afford to pay them the original 312 per month so surely it is going to look like I'm in a payment arrangement which would hit my file hard? If this is the case I will never be able to get a re-mortgage to pay their debt off when I am in a position to do so, I feel like this is going to hinder my whole financial future. If they start adding interest back on they will own half of my property when it is paid off as the £20 a month is all I can really afford with other debts. Sorry for such a long post but I am scared that they will enforce repossesion if I don't agree to any terms that they lay out. Thank you for any advice

foxy-stoat · 1 June 2018 at 11:53AM

mgt1978 wrote: »

Good morning I was wondering if anyone can help. I have a secured loan with Welcome which was taken out in 2005. We paid £312 for yrs and nothing came off the original £20.000 that we borrowed. Anyway 4 yrs ago they agreed to freeze the interest and put us on a £20 payment plan, I had a letter yesterday off Coast confirming that they have bought my account and the debt stands at 22000. I am really worried because it says that they can set their own interest rates and also share information with credit reference agencys. I have just started building my file up and can't afford to pay them the original 312 per month so surely it is going to look like I'm in a payment arrangement which would hit my file hard? If this is the case I will never be able to get a re-mortgage to pay their debt off when I am in a position to do so, I feel like this is going to hinder my whole financial future. If they start adding interest back on they will own half of my property when it is paid off as the £20 a month is all I can really afford with other debts. Sorry for such a long post but I am scared that they will enforce repossesion if I don't agree to any terms that they lay out. Thank you for any advice

What was the original agreement and interest rate/term etc?

I am afraid your already on a payment programme as you havent kept to the original £312 a month agreement and have been for 4 years - if you take a look at your agreement to see if the interest was fixed for the full term, it will say that they share information with credit agencies anyway so nothing there is changed.

You were lucky that Welcome agreed to reduce your payments by £292 for the last 4 years, have you been saving the extra money, as you have saved £14,016 in payments so far.

Do you know your house value, current mortgage balance and settlement figure for the second charge?

I would start with the basic numbers as at this point and work out your options.

mgt1978 · 1 June 2018 at 1:17PM

Hi thanks for the reply, thus far Welcome have never posted anything on our credit file. In some ways I guess we are lucky that we got a reduced payments but on the other hand we paid £312 for 9years and still nothing has come off the £20000 that we borrowed, infact we owe just over 22000!!
We were given some bad advice at the time and not making excuses but due to a tragic accident we were left in turmoil and are only just started to come to terms with it and rebuild our lives.
We currently owe around £82000 on our mortgage and would say its worth around £130000 but we are fully stretched with other debts for the next 3years.
I will have to just wait and see what they are proposing to do but I have 4 children so it's definately a worry at the moment.
Thanks again

foxy-stoat · 1 June 2018 at 2:10PM

And the original term/interest was?

What other debts have you got?

If you owe more than your house is worth maybe its time to think about drastic options....have you tried the PPI reclaim thing, selling as much stuff as you can and try to clear some of the debt?

Down value your car(s) possibly.

mgt1978 · 1 June 2018 at 2:42PM

The rate of interest was 17.5% variable and the term of the agreements was 15 years.
We don't owe more than the house is worth and as our mortgage is quite cheap it wouldn't pay us to sell up and private rent etc.....
We plan that it is our forever home or at least while the children are young.
Our main concern is what is likely to happen now that the debt has been taken over?
Thanks

My secured loan has been sold, does the new company still hold the security on my house?

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