Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By Geomac33
#306803 Hi about 3 yrs ago I had car repoed and the finance company took out an inhibition on me and I've been trying to obtain info on these
As far as I'm aware it secures the debt on property or heritable property etc. the thing is I don't own any property or am iexpecting to inherit any and was hoping to obtain a mortgage as I have saved enough for a deposit I've contacted cab and a couple of other debt advise charity's and I can't get any definite information as to what the inhibition actually means to me giving that I own nothing and was wondering if anyone has had similar problem/case.
So what I'm asking is could I get a mortgage with this inhibition against me?? Any clear info would be great thanks!
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By TalbotWoods
#306813 OOOOOOOOOOOKKKKKKKKKKKKKKKKKKKAY

Not heard of this before, as you have said an Inhibition Order is placed against a person to prevent them from selling a property that they already own or are inheriting, sooooooooooooooooo....

The Inhibition Order may in fact be invalid, and you will need to seek further advice on this.

In the past there are some cases where an IO has been served at the same time or just after a decree has been granted, and it has been assumed that the address you live at is your property, when is was not.

Though it is against the person (you) it can mess up any property sale by the owner of the address where you live now and int he past, so you need to get thsi sorted.

And yes it will affect any property you get, and any mortgage lender will not touch you with an IO in place as this is an indication of high risk debt.

As to how to remove it I am not sure, but I will flag this post to a advisor from Scotland, who will be able to answer this more clearly. Though it may be a couple of days before they get back to you

Tim
By wdm2
#306833 An inhibition is a form of preventive diligence, which can strike at future voluntary deeds in respect of heritable property over which a debtor has a power of disposal at the time the inhibition is registered. My bold.

The important point from is that the inhibition only affects property over which the debtor has a power of disposal at the time the inhibition is registered.

So directly the inhibition won't affect a purchase now. However, I think you'll still run into problems beacuse the mortgage company will come across the judgement that's been issued against you and may not want to lend. Even if you do manage to purchase a property you'd be vulnerable to action by the finance company who would now have something to 'go after'.

Soooooo....best to talk to the finance company and reach some sort of agreement with them to remove the inhibition.

I'll try and look at this later and see if there's anything else to add.