Secured Loan Arrears
A secured loan is a loan taken out against an asset such as a property.
If you fall into arrears with a secured loan, the lender or creditor is legally allowed to sell the asset in order to get their money back.
f you are in arrears on a secured loan attached to a property, it is vital that you maintain contact with the lender. Failure to do this could result in the lender starting court proceedings to repossess the property. If this were to happen, PayPlan can offer advice.
Lender Forbearance describes how your lender can help you if you are struggling with your mortgage or your secured loan. We advise that if you are having difficulties with your secured loan, tell your lender. They will be able to discuss what help they may be able to offer you to try and help. This may include the lender offering to vary the terms of the loan for a temporary period. Please note, it is the lender’s decision on what help may be available. However, the sooner you contact them, the sooner they can offer advice.
Be open and honest with the lender – explain your situation fully. Please don’t ignore any issues or correspondence from them as this will not help your cause. You’ll need to provide them with a copy of your household income & expenditure to evidence what you can afford to offer to the secured loan arrears.