secured loan

[davegojosh]

my retired parents r willing to help me get a secured loan on there house(i live there).I will pay for it but where do i start?

[Oneeyedvic]

Questions:

1. Is there a current mortgage on the property?


2. How much equity is there and how much do you want to borrow?


3. Do either you or your parents have any adverse credit - ie CCJs, defaults, arrears?


4. Do either of your parents have a private pension - if so how much per month.

Most responsible lenders will not want to do this as whilst there is adequate security, noone wants to go to court and try and get a court order to repossess the property from pensioners - a sure fire way of getting adverse publicity.

If you can answer the above questions, will have a telephone around tomorrow and see if I can get you the name of a company who would look at this.

[davegojosh]

thanks 4 reply oneeyedvic,no mortgage
�160,000,borrow 35000
3.yes
4. yes aprox 300.00

[Postdog]

It's worth bearing in mind that if for any reason you can't or don't pay, they lose their home.

[Killerschick]

Any loan secured on a property must be in the names of the owners of the property. This will make matters complicated as you are proposing to take responsibility for the payments. You can stand as guarantor for the loan and therefore have it underwritten on your circumstances but finding a lender willing to do this may be difficult. I would suggest you consult a reputable mortgage broker for advice about what lenders might agree this sort of loan and to find you the best deal.

As stated in previous responses, failing to pay a loan secured on a property will result in possession proceedings. Whatever you do don't consider the sort of lenders you see advertising on TV or in the tabloids saying they will consolidate all your debts into one manageable payment etc. These people are sharks, they have high interest rates, extortionate charges, extremely stringent terms & conditions and will repossess you at the drop of a hat.

[Oneeyedvic]

Couple of things:

Firslty, the loan does not need to be in the name of the person who owns the house - otherwise no limited company would be able to raise finance from home owning directors. The loan would be to you personally with your parents as guarantors.

Secondly, I would love to know what extortionate charges are - is in realistic to expect an APR of 6.1% if you have deafulted inthe past?

Thirdly, it is impossible to 'repossess you at the drop of a hat' - it will take a minimum of six months to repossess after you have stopped paying - and as I siad in my first response, most companies will not want to evict a pair of pensioners. More likely is that they wil lget a charging order and leave it on untl the house is old.

Since this is a first charge, I am afraid the companies I deal with cannot help (they only deal with second charges - not regulated by the FSA). I would suggets as killerchicks says, consulting a local mortgage broker. This is the sort of thing they can deal with with out a problem.

Any difficulties, please post back.