Home Equity Improvement Loan

[10ClarionSt]

When my sister died, we had no idea she had taken one of these out. We found a number of letters from a company she had used for the loan. I decided to contact them and advise that my sister had died, and what was the procedure now. The last letter that we found was dated 2013, none after that date. I gave them all the details on the last letter, except the amount of the loan, which was considerable. They said they had no record of my sister, her address or any loan but said they would carry out further checks and contact me by Fri 16th Sept. They haven't called back. I don't feel that I should just ignore it but if there is no record at the company, why all the letters? I'm baffled. Any thoughts anyone?

[Buenchico]

Do you have her bank statements? Was the loan still being repaid? Is there a reference number (from the loan company) shown against the standing order (or direct debit) payments?

[hc4361]

Download the Title Registry of her house from the Land Registry - small fee of around £4. This will show if there is any charge on the property which there will be if there is an outstanding equity improvement loan on it.

[hc4361]

Yes indeed. The company would put a 'charge' on the mortgage which means that other potential lenders would be aware of the debt and that the loan is paid off when the property is sold.

http://moneyfacts.co.uk/guides/loans/secured-personal-loans/

[hc4361]

Sorry, the lender would put a 'charge' on the property, not the mortgage. It is in effect a second mortgage.

[ubasses]

You do not say how old your sister was, if over 55 she may have been considering a Lifetime Equity Release which would explain the fact that there were no repayments leaving her Bank Account. However I would have expected you to have found annual statements showing an account number if she had gone ahead. Follow HC's advice re Land Registry. If nothing there it would be safe to assume that she did not go ahead, a reference number is just a way of making sure no correspondence etc is ever confused with another party. At the end of the day she may have decided she did not like the terms of the product.