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    • Tydog13
    • By Tydog13 16th Oct 16, 9:33 PM
    • 1Posts
    • 0Thanks
    Help required... huge charges
    • #1
    • 16th Oct 16, 9:33 PM
    Help required... huge charges 16th Oct 16 at 9:33 PM
    Hi. I was looking for some advice.
    My elderly uncle has just informed me that he took a loan out years ago for 20k for some personal matters. The terms on the Lilian were payment only on death or house sale. He tried many times to pay the Loan off although neither had happened.
    He has Just managed to move and was charged over £100k to repay this debt.
    Can someone tell me if this is classed as mis selling? When this was take out he had no clear guidance or help and could have paid back many years ago,
    Thank is for your help x
Page 1
    • robber2
    • By robber2 16th Oct 16, 10:11 PM
    • 112 Posts
    • 66 Thanks
    • #2
    • 16th Oct 16, 10:11 PM
    • #2
    • 16th Oct 16, 10:11 PM
    Could be more a case of misbuying. Its impossible to say without a lot more information and background. Do you have any paperwork related to the original loan?
    • PasturesNew
    • By PasturesNew 16th Oct 16, 10:24 PM
    • 55,512 Posts
    • 318,393 Thanks
    • #3
    • 16th Oct 16, 10:24 PM
    • #3
    • 16th Oct 16, 10:24 PM
    It is possible that he had the money as a portion of the value of his house (e.g. say the house was worth £60k and he got £20k) and the agreement is one where when he sells they get 1/3rd of the value of the house at that time and he's now sold it for £300k.

    These were quite common.

    Another one is where you don't pay interest - instead the interest is added each month to the loan amount.

    You need to find out who it was with and the name of the loan type if possible.
    • PeacefulWaters
    • By PeacefulWaters 17th Oct 16, 5:11 AM
    • 4,814 Posts
    • 5,798 Thanks
    • #4
    • 17th Oct 16, 5:11 AM
    • #4
    • 17th Oct 16, 5:11 AM
    Who's the lender?

    Your problem is that if it's a roll up mortgage taken out when rates were high, and the rate remained high, it's quite possible that the debt has spiralled to £100k if he's never even made a payment to cover interest.
    • enthusiasticsaver
    • By enthusiasticsaver 17th Oct 16, 10:21 AM
    • 2,325 Posts
    • 4,008 Thanks
    • #5
    • 17th Oct 16, 10:21 AM
    • #5
    • 17th Oct 16, 10:21 AM
    Sounds like an equity release loan. These were really popular about 20 years ago. Difficult to say whether misspelling or your uncle did not understand he was probably given a percentage of the house which has probably risen in value. Or as peaceful waters said, a deferred payment mortgage. We took one of those out as a desperate measure in 90s to avoid having to sell our house. Luckily we came to our senses after a year and paid it off.
    Save £12k in 2016 #46 £13600/£12,000
    Debt and mortgage free and saving for early retirement
    • jonesMUFCforever
    • By jonesMUFCforever 17th Oct 16, 2:14 PM
    • 23,052 Posts
    • 10,413 Thanks
    • #6
    • 17th Oct 16, 2:14 PM
    • #6
    • 17th Oct 16, 2:14 PM
    No it was not miss-sold but more probably miss-bought.

    These kind of loans would have been unregulated back then so it was caveat emptore ie buyer beware.

    How did he try to pay the loan off - has he got documentary evidence to prove this - did he have the money to do so?
    What goes around - comes around
    give lots and you will always receive lots
    • bris
    • By bris 17th Oct 16, 7:18 PM
    • 6,081 Posts
    • 4,998 Thanks
    • #7
    • 17th Oct 16, 7:18 PM
    • #7
    • 17th Oct 16, 7:18 PM
    These equity release schemes are aimed at the elderly and are not meant to be paid back in the traditional way. They are exactly as they are described, pay back on death or when house is sold.

    It provides the elderly with a lump sum to live they way they want without having to worry about paying anything back whilst still alive, the kids get a shock when they realise their inheritance has already been spent.

    Nothing dodgy about it, the big mistake was selling the house.
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