Secured borrowing

How you handle secured debt is very important. We've got you covered.

So, you have debt secured to an asset and your financial situation has meant that you can no longer make the required payments. Do not panic at all, you’re in the right place to understand what this means for you and how this situation can be handled.

First things first, understand what type of secured debt you have and what it’s secured to. This makes a difference.


If it is a mortgage, we have a dedicated section where you will find all you need to tackle the situation. You can head over there now by clicking here.

Car Finance

If car finance is the issue, we’ve got you covered on this as well. Head over to that section by clicking here

Still here?

If you’re still on this page we want to firstly calm any stresses you may have. Most of the time, secured borrowing is attached to a property. Also, in the majority of cases, the property has a mortgage.

What does that mean to you?

It means that if you are worried about losing the asset or being forced to sell your property, it’s not as simple as that. That’s because the property cannot be sold without the mortgage company being paid in full. This includes all interest payments and any other charges. The process of forcing the sale of a property is called an Order for Sale, this is not easy for a creditor to obtain. Order for Sales are very rare due to changes made in October 2012, we have an entire article about this in the purple box below that will help you.

Charging Orders

These are secured debts; in most cases they start out as unsecured and are converted to secured. If you’ve had a County Court Judgment (CCJ) and the creditor has managed to secure a Charging Order, you will likely have been asked to make specific monthly payment amounts towards the debt in order to prevent the creditor applying for an Order for Sale.

If you are struggling to make these payments, you should contact the creditor and the court to see if the amounts can be reduced. It’s really important you do this and try and get it agreed rather than just making zero or reduced payments. You will be risking your property if you don’t do this.

Judges have been given guidance to not grant an Order for Sale so easily, so there’s a good chance you will be able to come to agreement that will relieve some of the financial pressure. It’s important for you to fully understand Charging Orders, you can do that by clicking the article in the purple box below.

Secured Borrowing

If you are in a situation that you’ve taken out a loan secured to an asset i.e. a property and you are struggling with the payments, again communication is key.

The creditor has already secured the debt so they will know their money is very safe. Therefore, if things get tough financially, don’t suffer in silence. Contact the creditor to see what options you have to relieve the pressure without your asset being at risk. Can you have a payment break? Can you extend the length of time you pay the loan back? Do remember that a judge will also be aware that the creditors money is safe, so that may go in your favour if the creditor wants to push for an Order for Sale.

Don't panic

Secured borrowing is obviously more of a risk than unsecured. We always recommend that you restrict secured borrowing to mortgages only. If you really need to borrow or acquire credit, it is much less of a risk to your assets if it’s unsecured.

Remember what we said earlier, going for the asset is often the last resort. Be aware of the options you have to prevent losing it. Don’t panic and make sure you are communicating (in writing). If you are not paying or communicating, you may leave the creditor no other options but to go for the asset. Take a look at the articles we have in the purple box below to get your mind right and relieve some of the stress debt you may be under.

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