if a charge is put on my property for non payment of a loan does the charge accrue interest or does the amount stay the same until the house is sold

-- john fearns (jfearns@blueyonder.co.uk), May 02, 2004

Answers

John,

Is the loan you refer to regulated by The Consumer Credit Act ?

Mark.

-- M Amos (idgroms@hotmail.com), May 02, 2004.

John,

In answer to your email, I think then you will be interested in the following info taken from: http://www.newcastle.gov.uk/welfr.nsf/a/debtFS6

However, note the use of the word "usually".......

Interest

If a creditor has taken the debt to the County Court, they cannot usually add extra interest once a Charging Order has been made.

Interest cannot be added if:

the debt is for an agreement regulated by The Consumer Credit Act. This includes most ordinary credit agreements, including bank overdrafts; or the debt is less than £5000 in total even if it is not covered by the Consumer Credit Act.

Mark.

-- M Amos (idgroms@hotmail.com), May 04, 2004.

Hello Mark,

Would that then apply to a charge on your property resulting from a mortgage shortfall debt, ie once the charge is registered they can no longer apply interest.

The link had some interesting info but do you know how reliable it is. I was particularly interested where they state an Order for Sale can not be applied for where the debt - or judgement was in a sole name but the house was owned in both names i.e. it's my Husbands debt which I have nothing to do with as it was before he met me and our current house is in both names. Any thoughts??

-- Julie (jmj260101@aol.com), May 05, 2004.

Julie,

I am currently double checking the info in this link as posted already. See the posting I gave to Jeanie entitled Charge on new house dated 15th April last re your additional questions, there does appear to be a contradiction in respect to the Order of Sale issue in respect to mortgage shortfall debt. Perhaps where the link states "Very rarely the creditor may use other procedures to try to force a sale" they are referring to s14 Trusts of Land and Appointment of Trustees Act 1996 as mentioned in the solicitor's 15 April posting, I don't know. However, I would be inclined to believe the solicitor rather than this link, I haven't known him to be wrong so far. I've sent him the link info, I'll let you know what he says.

Mark.

-- M Amos (idgroms@hotmail.com), May 05, 2004.

John/Julie

The info given to John I have double checked with a solicitor....

Mark

Yes, you are correct.

Generally, a charging order does not stop the accrual of interest but, as you say, interest cannot accrue on CCJs for consumer credit agreements or CCjs for less than £5k

However, Julie, in respect to the link sale info unfortunately he says......

Mark

I don't think this is correct. The procedure for an application for an order for sale is different though, with the Trusts of Land and Appointment of Trustees Act 1996 covering situations where there is a CCJ/CO against one of two beneficial owners or where there is a CCJ/CO against both beneficial owners. The Charging Orders Act 1979 covers situations where a CCJ/CO is entered against a sole owner.

-- M Amos (idgroms@hotmail.com), May 07, 2004.