Time order on a secured loan

 August 2014

Fact sheet no. 06B

What is a time order?

A time order is a way of asking the court to give you more time to pay a loan agreement if you have fallen behind with the payments.  It can change:

  • the amount you have to pay each month; and
  • how long the agreement will last.

In some cases, the court can also make an order to change the interest rate.

A time order is particularly useful if you have a secured loan and your creditor is threatening to repossess your home.

What loan agreements are covered?

You can apply for a time order if your loan agreement is regulated by the Consumer Credit Act 1974.  Your loan will be regulated if you borrowed less than the following amounts.

  • £15,000 if you took out your loan agreement before 1 May 1998.
  • £25,000 if you took out your loan agreement between 1 May 1998 and 5 April 2008.
  • There is no financial limit if you took out your loan agreement from 6 April 2008 (unless your loan was taken out for business purposes).

Information:

mortgages on your home

Bank and building society mortgages taken out to buy your home are not covered by the Consumer Credit Act 1974.

Extra advice:

check your agreement

If you have a loan agreement it should state whether it is covered by the Consumer Credit Act. The agreement should have a heading that says either:

FIXED SUM LOAN AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974;

or

CONSUMER CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974.

 

Why apply for a time order?

You may be able to use a time order to reschedule the payments on a loan that is secured on your house.  A time order and an order to change the interest rate may be a good option if you have fallen behind with a secured loan.  You may be able to stop the creditor repossessing your home.