Secured Loan Settlement Help

helen201975

Hi
Please can someone help me?
I took out a secured loan in 2006, total borrowed £35,000 plus PPI of £7,000 amounting to £42,000 over 15 years.
I am having to sell my house and obviously need to settle this before i can move, i have requested a settlement figure and been advised that this will be £41,000? I am really confused and worried as to how when i have paid £445 per month for the past two years i owe only £1,000 less than originally borrowed.
I have asked about cancelling the PPI as this was sold to me on the basis that after 5 years i get £7,500 back and no other information was given. By cancelling i reduce my monthly payment by £12 even though the agreement states £69.00 per month for this and i will get a refund of only £1,100 which they also do not seem to have taken into account on the settlement figure.
I have posted a thread before relating to the PPI issue but things have developed since then.
Please if anyone can help i would be very grateful.
Many thanks
Helen

Rafter

Helen,

Repayment amount sounds reasonable unfortunately. Because your loan is over such a long period, most of your payment in the early years is just covering the interest bill. With this type of PPI insurance you are also paying interest on the insurance premium too.

Your best bet is to see whether you have a misselling claim on the PPI. Were you told it was compulsory? Would you have been able to claim? Were all the exclusions clearly pointed out to you?

Good luck and hope you manage to get a better settlement offer.

R.