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  • FIRST POST
    • PaulaMalone
    • By PaulaMalone 9th Oct 17, 6:12 PM
    • 1Posts
    • 0Thanks
    PaulaMalone
    Loan secured on property
    • #1
    • 9th Oct 17, 6:12 PM
    Loan secured on property 9th Oct 17 at 6:12 PM
    10 years ago i took out an interest-only loan of £30,000 on my house which was secured. I have now come to the end of the agreement and to my dismay the final amount payable is £34,800 !!

    I have being paying the "interest" only for the entire period and not missed a single payment so where has the extra £4,800 come from?

    Is this legal and can i claim it back ?

    Please help
Page 1
    • Tarambor
    • By Tarambor 9th Oct 17, 6:27 PM
    • 1,746 Posts
    • 1,197 Thanks
    Tarambor
    • #2
    • 9th Oct 17, 6:27 PM
    • #2
    • 9th Oct 17, 6:27 PM
    Have you looked through your loan agreement? Have you looked at any statements? Were there fees for things such as legals or arrangement fees which at the time you chose to have added to the loan to be repayed at the end?

    If they are charges you agreed to when you signed up then yes they're legal but without us seeing your loan agreement nobody here can tell you whether they're legitimate or not.

    I know it seems to be a strange thing to do nowadays but have you tried phoning them up to ask why it is £34800? The loan company are more likely to give you the reason than we are.
    Last edited by Tarambor; 09-10-2017 at 6:29 PM.
    • PeacefulWaters
    • By PeacefulWaters 9th Oct 17, 6:50 PM
    • 7,300 Posts
    • 9,041 Thanks
    PeacefulWaters
    • #3
    • 9th Oct 17, 6:50 PM
    • #3
    • 9th Oct 17, 6:50 PM
    If it's on the credit agreement I'd guess there's a good chance it's perfectly legal.

    Brokers fee?
    • zx81
    • By zx81 9th Oct 17, 6:58 PM
    • 14,380 Posts
    • 15,169 Thanks
    zx81
    • #4
    • 9th Oct 17, 6:58 PM
    • #4
    • 9th Oct 17, 6:58 PM

    I know it seems to be a strange thing to do nowadays but have you tried phoning them up
    Originally posted by Tarambor
    What is this? 1975?

    • bris
    • By bris 9th Oct 17, 10:23 PM
    • 7,091 Posts
    • 6,107 Thanks
    bris
    • #5
    • 9th Oct 17, 10:23 PM
    • #5
    • 9th Oct 17, 10:23 PM
    What is this? 1975?

    Originally posted by zx81
    I know right, it's much easier to post on here and wait a couple of days to be bombarded by different opinions and still be no further forward. Phone them up lol, that was so last decade.
    • DCFC79
    • By DCFC79 9th Oct 17, 11:13 PM
    • 30,399 Posts
    • 19,220 Thanks
    DCFC79
    • #6
    • 9th Oct 17, 11:13 PM
    • #6
    • 9th Oct 17, 11:13 PM
    I know right, it's much easier to post on here and wait a couple of days to be bombarded by different opinions and still be no further forward. Phone them up lol, that was so last decade.
    Originally posted by bris
    Im noticing it alot, would expect a phone call to be the first thing to be a first thing to do.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • StopIt
    • By StopIt 10th Oct 17, 7:55 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #7
    • 10th Oct 17, 7:55 AM
    • #7
    • 10th Oct 17, 7:55 AM
    Im noticing it alot, would expect a phone call to be the first thing to be a first thing to do.
    Originally posted by DCFC79

    Or to read the credit agreement which would have set out the monthly payments along with the fees etc and the final payment at the end.


    Of course, the default now is to run to the internet and ask if being charged fees are "legal" instead of just checking what you signed up for, but hey ho.


    As stated, contact the loan provider, and get your paperwork to check what you actually agreed to begin with.
    • Vectis
    • By Vectis 10th Oct 17, 9:13 AM
    • 464 Posts
    • 568 Thanks
    Vectis
    • #8
    • 10th Oct 17, 9:13 AM
    • #8
    • 10th Oct 17, 9:13 AM
    Out of interest (pun NOT intended), how were you intending to pay off the sum borrowed if you were only paying back the interest?
    • MEM62
    • By MEM62 10th Oct 17, 11:08 AM
    • 1,394 Posts
    • 1,009 Thanks
    MEM62
    • #9
    • 10th Oct 17, 11:08 AM
    • #9
    • 10th Oct 17, 11:08 AM
    Out of interest (pun NOT intended), how were you intending to pay off the sum borrowed if you were only paying back the interest?
    Originally posted by Vectis
    I would expect that the OP have some financial vehicle (saving / investment plan or similar) to settle the original amount.

    What they really needs is the original loan documents so that they can see the T's & C's and answer their own question instead of asking the opinion of random strangers that do not have the benefit of sight of the agreement and therefore no clue what the OP signed up to.
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