Secured Loan - Arrears

[booboopoo]

We have a mortgage which is all up to date, but we have fallen behind on our secured loan (3months) the loan company have sent us one letter but we have not heard anything since.

The loan is with First Plus and in their paperwork they state they have never had to repossess anybodies house, how many months can you go before it gets really serious

Also would they let us pay the interest only for a few months?

[Loosehead]

Rule one is talk to them I am sure they will let you pay interest only if you need to. Even if they say no, do it anyway, they will accept anything you pay and action from them is more difficult if you can demonstrate that you are trying to pay. Do not bury head in the sand, that would be very very costly. Get the sort code/account details and pay what you can when you can. As a second charge they alone would find it very difficult to force a reposession order but that doesn't mean they can't make life very uncomfortable.

[EverClean]

They would be able to repossess but would have to pay off the first charge (your mortgage) and take their monies from the remainder. It is becoming quite rare that secured loan companies affect repossession orders for this fact - but it is not impossible. However your ability to get credit in the future will be severely impaired if you continue to not pay and it will be difficult for you to get credit in the near future with these three months missed payments. Speak to First Plus and make an arrangement to pay a certain amount a month or go to interest-only. Don't ignore it!