Secured loan - PPI problems

rubix_76

I have put this in the DFW section as it doesn't really fit under loans or mortgages, even though it encompasses both.

As I was starting a new job (in an unsecure job) we needed a loan so we got a secured loan with Barclays (Yes I know bad idea, but the mistake has been made and I am trying to rectify the mistake).

I am thinking of getting an advance on my mortgage with Nationwide (which we couldn't get then) with an interest rate of 4.89 % to pay off part of a secured loan which is currently 13.1% (NOT APR !!!) it is variable and seems to go up and hardly ever goes down.

As my job then was not very secure we took out PPI (Yes another bad idea). I think we have been misold the PPI as in my investigations on paying it off I have found the following problems.

PPI only pays out for 5 years on 25 year loan - (This we knew about)
The loan for the cost of the PPI (taken in addition to the loan itself) was taken over 25 years (not 5)
when PPI rebate paid back after 5 years it only reduces the term rather than reducing the monthly payment. (we could just keep this cash if we wish)
when asking if part settlement can be done also told it only reduces term, and not monthly payments.

When I have tried asking if there is any way of getting the repayments reduced they gave me a convoluted explanation that says if they (Barclays) agree to letting Nationwide give me the advance (Barclays need to go to their underwriters) after I have filled an application form (for Barclays for a deed of postponement), been approved by nationwide to release the funds, then and only then will Barclays tell me if they approve the part settlement, and then they will grant this deed of postponement.

He kept saying that as we took the loan over 25 years we can't extend this term, but I don't want to, I just want to do a part settlement to reduce the monthly repayments. The guy from Barclays was really confusing me and I don't think that he understood what I was asking.

SO, if that all makes sense, should I be able to reduce the payments, if so how, and do you think I have a case for a miselling for the PPI ?

"Deep breath"

Thanks for reading :T

milliemonster

I can't really help but is it not possible to remortgage to pay off all the secured loan instead, do you have enough equity to do this?

rubix_76

milliemonster wrote: »

I can't really help but is it not possible to remortgage to pay off all the secured loan instead, do you have enough equity to do this?

Unfortunately not, we can only make a part repayment (coming from an advance from our mortgage), but the fees involved would be wiped out in a matter of months so it is well worth it dues to the huge difference in interest rates.