Loans secured on a house..ins and outs ?
Loans secured on a house..ins and outs ?
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Discussion

dugless

Original Poster:

317 posts

264 months

Thursday 26th January 2006
quotequote all
We are currently in the process of puting our house on the market,but we have quite a big loan secured against the house...

What happens when we sell the house ? , can we happily keep paying the loan even though the security isnt there ? , The same amount of equity won't be carried on to the next house..Am I up sh*t creek without a paddle ?

help..

Marki

15,763 posts

301 months

Thursday 26th January 2006
quotequote all
I would think you would have to repay it when you sell mate

deckster

9,631 posts

286 months

Thursday 26th January 2006
quotequote all
At the risk of sounding obvious, have you asked the loan provider? If you're a good customer (pay on time etc.) then I'm sure they'll be more than happy to accommodate any changes.

mattley

3,039 posts

253 months

Thursday 26th January 2006
quotequote all
Absolutely, talk to the lender, and check your paperwork, you probably can't just sell the house, as the proportion secured belongs to the lender, not you, as the loan is secured against an interest in the property.

Assuming you're buying another property, and borrowing against that, it'll just be a consolidation issue and shouldn;t be too traumatic, but you really need to get all this stuff sorted so you know before you put the property on the market.