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Alex J.
Alex J., Law
Category: UK Property Law
Satisfied Customers: 3613
Experience:  LPC, 2 Years Conveyancing
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Hi I took out an unsecured loan with my bank many years

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Hi

I took out an unsecured loan with my bank many years ago. Which later I recieved a Ccj for it was appropriately, £19,000 in 2009. I went on a debt management scheme and included all my other debts on this scheme. Of which I pay a monthly amount and it is distributed accordingly. During the years I have missed a few payments. Yesterday I recieved a summons from the county court setting a date for a hearing to put a charge on my mortgage.
It is now appropriately 15,000.

My mortgage is a interest only mortgage, and has very little equity in it.
My intention was to address this debt next year when I am anticipated been in a better financial position.
Can you advise me if there is anything I can do to prevent this action?

AJ Genus : Hi
AJ Genus : thank you for your question and welcome to Just Answer.
AJ Genus : is the applicant the bank? Who is your mortgagor? Will you be able to repay the debt next year?
AJ Genus : kind regards
AJ Genus : AJ
Customer:

Hi no the bank is not my mortgage. I tool out the loan when I used to bank with narrowest. My mortgage is with bank of Scotland

Customer:

Yes I will be able to clear the debt next year

Customer:

Sorry my spelling is terrible (national Westminster)

Hi

Thank you.

In all likelihood the bank will get their charging order.

What I suggest you do is contact the bank immediately and agree to the charge and forbearance on the debt. You will save the additional cost of a charging order and the possibility of forcing a sale. You will need to present to the bank a case based on afford ability as to why you will be able to repay the debt next year. This will be done by a deed of forbearance, this will give you the added certainty that the bank won't enforce their charge until you are ready to repay.

I look forward to hearing from you.

Kind regards

AJ
Customer: replied 3 years ago.

Does it make any difference that I currently have a buy to let property ?

Hi

Thank you.

The fact that it is a buy to let property will probably make it easier for them to get a possession order as it is not your principal home.

Getting a forbearance on the debt from the bank is crucial. You want to be able to stop them from calling in the debt until you can repay it. The only way they will agree to this is if you give them a charge that they are applying for anyway.

Kind regards

AJ
Customer: replied 3 years ago.

Sorry I have not made my self clear. The property I live is not a buy to let., it is my private residence, however I do own buy to let properties. All of which are tenanted.

Hi

Thank you.

Do any of those have equity in them? If so then I would consider offering those as security until you can repay it.

Ideally you don't want a charging order to possibly threaten your other lending arrangements.

I look forward to hearing from you.

Kind regards

AJ
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