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Selling a property with a secured loan and no equity

I have a joint mortgage with my partner-this is 100% mortgage that we've had for 2 years and are currently paying this back on an interest only basis. However, last we were forced to take out a secured loan for £35,000 against the property. My partner and I are now separated and need to sell the property. I would like to know if we are able to sell our house as there is no equity in the property to pay back any of the secured loan. What will happen to the secured loan if we do attempt to sell? I've had differing opinions on my situation with some people saying that the secured loan would be converted to a personal loan and others saying that we won't be able to sell the property until the loan is paid off. Thanks for yor help. Tilly

hello tilly

You will need to speak with the secured loan company that you have the loan with. Both opinions you have had are correct, but you will need to speak with the secured loan provider you are with to find exactly where you stand when selling the house. If you are able to sell your home then any shortfall from the secured loan and even the mortgage will become a personal debt, which you are liable to pay back. Again, speak with your loan provider for advice. Hope this Helps,





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