Paying off Secured Loan

[sharon1972]

Hi, I recently got a �10,000 secured loan on my first property as a deposit for the second property I've recently bought (completed end of March). My circumstances have changed and I now have to sell my first property. Could I still just keep paying of the �10,000 in installments to the lender or would I definitely have to tell the lender I have sold the first property?

[buildersmate]

If the loan was secured it will have involved the lender getting a second charge on the property title. This will show on the register held at the Land Registry (the first charge being held by your mortgage lender). It therefore won't be possible to sell the first property without the secured loan lender being satisfied that the loan is still 'secured', so you have to tell the lender. You should be able to move the secured loan to the second property, subject to the overall ratio of asset value to borrowings.