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Unsecured debts. - Aimee 2019-08-31 10:11:35
Good morning, I am looking for any advice or help I can find please, basically back in 2009 I lost my job and my flat got repossessed, I had two loans against the flat that I think were secured, they are on my credit file but the mortgage isn't, I have just checked Zoopla and the property was sold in 2010 so my question is wouldn't the loans have been paid aswell? And why isn't the mortgage showing on any credit reports I can find? I stayed with friends for a year until I found somewhere to live and I never heard anything about the sale or money owed etc, thank you for your time and any answers you can give me, Aimee x

Re: Unsecured debts. - Jane 2019-09-09 17:19:38
Hello Aimee

I am sorry about what happened way back in 2009 and hope things have improved.

Once the property was sold the first thing paid would be the outstanding mortgage and then anything left over would go towards the secured loans in the order they were placed on your file. If there was enough equity to pay them they would have gone but if not they would remain as unsecured debts.

Notifications on the credit report last for 6 years so if the mortgage was paid off in 2010 then they would have gone from the report. However, secured loans are like mortgages and are made up of capital and interest and secured on the property. The interest sits on the credit file for 6 years after repossession and would then fall off, even if not repaid but the capital (as it was secured on land) does not become statute barred for 12 years.

Basically it depends who the lenders were for the secured loans as those who are members of the Council of Mortgage Lenders have an unofficial agreement they will not chase any debts after 6 years. But if you do not have the money, you cannot pay them. However, if you were to buy another property within this period and they found you they could chase and try and get it secured on the new property. I have seen this happen.



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