Warnings have recently been published by debt advice charities, a growing tendency of some High Street banks to recover the order "collection" of mortgage loans at home. Big names of loans, such as Abbey, Alliance & Leicester, Bank of Scotland, Halifax, Lloyds TSB, Nationwide and Northern Rock to use all these measures for a loan without guarantees of what is new borrowing secured against the house permit.
When a loan is granted, you can save the debtor's assets, and must review the requirements for repayment of the lender, you can still retrieve their money by selling the property, or can not be guaranteed, therefore the Guarantee is offered by the borrower. Because of the obvious advantages that the financial risk of the provider and the failure rate much lower that occur with respect to loans secured loans unsecured loans increased limits and lower interest rates will choose a rule to those opting for a loan guaranteed.
Production orders are a legal means of converting a loan without a provision to ensure that the debt against your house if the sustained demand chosen your property. With a collection to put on a house means that if the property is sold and the mortgage is cleared, then any remaining cash is paid automatically to the stock of outstanding debt. After this means that not "sell your house until you have paid your mortgage, second mortgages and other secured loans and the amount due during the investigation by Fool.co. United Kingdom."
It should be noted that a court of an application through an investigation is to examine the lender must have issued a decision of the County Court against the debtor and the borrower does not make the payments required in this sentence as determined by the court. Even a survey to provide them not only that the lender is to repay the debt, but it is the debtor of the sale of their goods without paying what they need to prevent. The debtor is not required to their property, if the goods are sold or imported, but there are extreme situations in which it is possible for a lender to resort to a court order to force a sale. It 'very rare for the court, so that the creditor has an absolute order shop to sell the house. This is for the Court to consider the opportunity to establish a contract for the sale.
Currently, the number of orders issued store is approximately 35,000 per year, but this number increases gradually. According to the BBC, "the consultants say that the practice is so widespread in this way and credit cards, mortgages to modify the warning style of movement that your home may be at risk if you miss repayments."
While most people would agree that the provider is unable to recover the money should be allocated, all the way of a loan without collateral, will not be placed on the debtor's home at risk if the challenges ahead and are not financially able to comply may refund plan. Peter Tutton of Citizens Advice has revealed that the banks will also benefit from this practice because they are still higher return on the cost of unsecured debt, creditors can have both, yet the risk premium from the borrower, but they are always the safety of goods , and that seems unfair. "
Malcolm Hurlstone of the Consumer Credit Counseling Service, told the BBC that, if forced to practice with the commands of unsecured loans into secured loans, increasing the current rate, then no 'There is nothing that would have the attention of the Ministry of Commerce and Industry of winning or the Financial Services Authority. "The Financial Services Authority, in turn, reported it could not intervene, and for the Department of Trade and Industry.
With the current lack of regulation for the situation to improve, do what you always prevents a state where they could be taxed.
* See lending as much as possible, with sites such as Moneynet (http://www.moneynet.co.uk/loans/index.shtml)
* Check their financial situation - can afford to make repayments and now await you in a position to make all future payments? With the simulator ready, such as (http://www.fsa.gov.uk/consumer/04_CREDIT_DEBT/loan_calculator.html) can decide if you can afford a loan.
* Read all documents and all agreements carefully.
* If you receive a loan, and then the financial difficulties and missed repayments, talk to your lender immediately to discuss the issue.
* If your financial situation is serious, contact Citizens Advice or the Consumer Credit Counseling Service for free advice on how to proceed.
Useful addresses:
Moneynet loan comparisons (http://www.moneynet.co.uk/loans/index.shtml)
Financial Services Authority mortgage loan (http://www.fsa.gov.uk/consumer/04_CREDIT_DEBT/loan_calculator.html)
Disclaimer:
All information contained in this article is for informational purposes only and should not be construed as advice under the Financial Services Act 1986.
It is strongly advised to take appropriate professional advice and legal advice before entering into binding contracts.