Secured Overdraft Help

[ltc1607]

I have a business overdraft secured on my house when I arranged it in 2005 my wife had to sign to say she agreed.The overdraft is renewed every year by them sending me an agreement to sign my question is should they not write to my wife to keep her informed. The overdraft was increased by 2000 in December and even then the bank did not inform my wife. Our situation is my business is on hold due to the climate the bank want the overdraft paid, I want them to turn it into a loan even though the interest rates they are quoting in todays market are a rip off but I have no choice as I dont want them to take the house.I just feel they should have kept my wife informed.

[ltc1607]

Help anyone

[debbiedebt1979]

Hey,

 

they dont have to inform your wife they just have to have her agree to the charge going on the property if she is named on the title deeds, which is normal if you own the hose outright or have a mortgage.

 

It is unlikely that the bank will turn this into a loan themselves because they have security and know that overdrafts are the easiest way for them to make money.

 

My initial advice would be to turn it into a loan yourself, as in change bank accounts, so have no money paid directly into it and no DD or standing orders leaving it, then transfer money into it yourself each month to reduce the overdraft balance.

 

My most recent experience of dealing with this was a client with a NATWEST business overdraft and they were looking to add a charging order onto her property. If they try and do anything like this then there are things you can do to buy yourself time to deal with it, but that could be way down the line and i think you just need general advice right now. If it did get to this point though, message me and i'll advise you further.

 

take care

debbie

[ltc1607]

hi debbie

i dont pay in to that bank anymore I have another account.The loan was supposed to be sorted in may but they have stalled just to get more interest out of me seeing manager next week to sort loan or so he says.just dont want them having a go at making me sell the house or trying to take it from under me.

[izools]

How's your personal credit rating? Have you checked it lately?

 

If it's good, then why not get a unsecured personal loan out with a better APR or remortgage if the overdraft is that big so you are only paying a miniscule APR.

 

The other option is as others have advised. tell the bank (don't ask) that you'll be clearing it at a set amount each month and that's that. Point out to them that it is a reasonable proposal and with such a proposal in place they have no justification for demanding full settlement or else.

 

Even if they do default the account and threaten you with court action, if you can prove to the judge that you made them a reasonable offer to clear the debt, and that you've been keeping up with your proposed payments, he will throw it right out.

 

But it won't get that far if you do just that. Offer them something you can afford, confirm your offer in writing, and carry on paying it. What more could they ask for?

[PGH7447]

Have the applied any additonal charges against this overdraft?

[ltc1607]

Only interest charges that are a rip off costing me 530.00 a month in interest.First told the bank I had a problem in December so the manager just increased the overdraft by 2000 and said come back in March thats when he said I will turn into a loan they quoted 580.00 a month but all they have done so far is drag it out this long to keep getting the interest payment.