Interest registered with companies house blocking loan

[xan]

Hi

 

I hope you can help.

Our home is owned out right in my husbands name his father has a 15k possibly less charge on the property registered with the land registry. We want to consolidate all our credit cards bank loan etc and borrow 25k against the property which is worth 300 to 350k. once we have consolidated we have some work that we would like done to the property.

We have no morgage as the property is paid for out right just this interest of my father in laws.

 

Can he really stop us borrowing money with this charge.

Is there a way around telling him.

I am also having trouble borrowing the money as banks do not want to be first charge , why is this.

 

Its all a bit odd we have a 300 grand home and want to borrow 25k over 8 years to consolidate our debts its that or an IVa or worse. You would think they would be bitting our arms off despite our poor credit history there is more than enough security.

 

Please can anyone advise me

Edited August 3, 2009 by xan

[hammyhound]

Xan,

 

when you say the banks don't want a first charge, my immediate response would be usually they will want a first charge. Having said that you can get consent from father to allow the bank to have a first charge sometimes called "priority charge".

 

What are the banks saying. Do they think that father has a charge which could amount to the whole of the equity in the house?

 

If you can you could get an extra loan and pay off father in which case the bank's charge would then automatically become the first charge - if that makes sense.

 

HH

[banker_rhymes_with]

Hello Xan!

 

My advice is not to borrow against the house.

 

Never turn unsecured Debt into Secured Debt.

 

It's like paying off one who cannot grab your house, just so you can borrow from another who can take your house.

 

If you can possibly avoid doing this, I'd keep the home free of Debt.

 

Try to get a £25k Personal Loan, unsecured, and consolidate with that instead.

 

From the benefit of hindsight, I think you will one day agree this was the best advice you could get.

 

Cheers,

BRW

[xan]

If you can you could get an extra loan and pay off father in which case the bank's charge would then automatically become the first charge - if that makes sense.

 

thanks for that advice only problem is father in law wont let us pay him back its a gift he dosent want the money but wont remove the charge.......................

 

He means well but he is a difficult bugger at times

[xan]

Hello Xan!

 

My advice is not to borrow against the house.

 

Never turn unsecured Debt into Secured Debt.

 

It's like paying off one who cannot grab your house, just so you can borrow from another who can take your house.

 

If you can possibly avoid doing this, I'd keep the home free of Debt.

 

Try to get a £25k Personal Loan, unsecured, and consolidate with that instead.

 

From the benefit of hindsight, I think you will one day agree this was the best advice you could get.

 

Cheers,

BRW

 

Thanks banker rhymes but our payments at the moment are more than we earn. if we consolidate everything over 8- 10 years our payments will be less than a quater and this includes 10k for essential repairs on our property.I think a secured loan is the only saine move. I would love to get it unsecured but no one dose unsecured now above 15k.

 

When we got into debt over the last 10 years we were a one small income familly we are now a two income family and the income has over trebled. A lot of what i am paying out is credit card and overdraft charges, once all sorted I am going to try and get these back, I just cant cope with the fight to reclaim charges whilst I am in debt.

[rickyd]

"he doesn't want it back, its a gift" but he won't remove the charge? Doesn't sound like much of a gift to me.

 

The charge shouldn't stop further borrowing but as banker rhymes suggests, aim for an unsecured loan first. There's no point offering security if you don't need to.

[banker_rhymes_with]

Hello xan!

 

Thanks banker rhymes but our payments at the moment are more than we earn. if we consolidate everything over 8- 10 years our payments will be less than a quater and this includes 10k for essential repairs on our property.I think a secured loan is the only saine move. I would love to get it unsecured but no one dose unsecured now above 15k.

 

When we got into debt over the last 10 years we were a one small income familly we are now a two income family and the income has over trebled. A lot of what i am paying out is credit card and overdraft charges, once all sorted I am going to try and get these back, I just cant cope with the fight to reclaim charges whilst I am in debt.

 

I do understand, but swapping unsecured Debt for secured Debt is not a wise move, particularly with a building recession.

 

Why not get a £15k unsecured Loan, then wait a few Months, and get another one? You may find you can manage on one, and by being extra careful with budget, you may avoid the 2nd Loan and having a ball and chain put around your property.

 

If you can keep the home free of bankers, it will be by far the best thing you can do. Please don't jump at what, at the moment, looks like the better option. It really, really isn't.

 

Cheers,

BRW