Author Topic: Charging order and re-mortgaging  (Read 791 times)


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Charging order and re-mortgaging
« on: Aug 02, 2010, 10:46:31 AM »
Hi, I'm new here and in a bit of a mess  :(

I have an unsecured loan that defaulted (£10k) and went to CCJ and sadly defaulted again, now with Lowell and they took me to court and placed a charging order on my house.
My husband and I are joint owners and have no mortgage (fortunate to pay it off as my husband has his own business).
I am keeping up the payments now - my husband is unaware of all this - he now wants to remortgage the house for £50k to do an extension - what will the solicitor do ?
Will they have to pay off this order when we re-mortgage or can it stay hidden ?
I will not be on the re-mortgage application, just my husband as I won't be able to get a mortgage again because of bad credit.

Any help please ?

I know if we sold it tomorrow we would have to pay off the debt to Lowell before purchasing new house - so I have talked him out of moving home  :(   but he's insisting on doing the building work now.

Steven Jackson

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Re: Charging order and re-mortgaging
« Reply #1 on: Aug 02, 2010, 02:29:29 PM »
Hi there Lolalola
If you go through a remortgage process, the solicitor your husband uses (either provided by he bank or privately) will come across the charge and report it. As such, I believe that he will find out about it.
Given that the charge is there, much the best thing to do would be to pay of the debt within the re-mortgage process. There is statutory interest of 8% added to a charging order which is going to be far more expensive than the cost of borrowing the money through a mortgage.
I know it is hard, but I really recommend that you speak to your husband about the debt.
Debt Expert