Q: What if the asset is sold for more than the loan amount?

The excess will be paid back to the client after costs are taken out.

Alan Margolis, head of bridging at United Trust Bank, said when a property used as security is sold to repay a debt, the lender is only entitled to retain an amount of money equal to the value of the debt.

Any surplus must be paid to the borrower or to a second charge lender if there is a second charge lender who is also owed money.

In short, Mr Margolis said any surplus after all secured lenders are repaid is paid to the borrower or their trustee in bankruptcy if one has been appointed.