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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7430
Experience:  BA (Hons), PgDip, Practising Solicitor
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I have an unsecured loan I had an agreement to lower the payments

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I have an unsecured loan I had an agreement to lower the payments for the last six months due to me not working this agreement finished this month, I need to keep the payment agreement going what i would like to know is if they refuse to do this can they put a charge on my house if i cant pay?

Thanks for your patience.

If you have a loan agreement and you breach the repayment terms then the creditor is permitted to take enforcement action against you.

This means that they would first have to obtain a money judgement against you at court for the amounts that you owe. Once they have obtained this they are at liberty to apply for a charging order against your property.

However, if you are able to show that you have a reasonable prospect of paying off the amounts owed under the money judgement when it is obtained then you may be able to put off the charging order subject to you paying the amounts ordered by the court.

If you breach these repayments then the charging order will come in to force.

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Kind regards,

Customer: replied 3 years ago.

At the moment Tom i am out of the country and i am hoping that i do not have to go back to England would this make a difference?

I have sent a recorded letter to the bank but not had a response and also tried to contact them by email. If i contact the bank by phone and offer to make lower payments can the refuse my offer and take me to court?


Yes, if you have a contract which confirms what the payments should be and this is breached then they can sue you. It does not matter that you are outside the country.

You need to keep in close contact with what the bank are doing, including checking the post for service of court papers because if you are out of the country you could end up with a money judgement (wrecking your credit rating) and potentially a charging order.

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