First Plus Fees

Timmsie_2

Hello Money Savers.

Can I start by saying what an excellent site this is, It's saved me cash already

But unfortunately I have the misfortune of having a First Plus loan. Now I'm moving house I can either pay it back (and end up paying more than I lent). Or I can transfer it, but to transfer they will charge me £210.

I think that this is money for old rope. So does anyone know if I can avoid this payment. By complaining or anyway possible

Thanks

Rafter

You probably signed up to this fee in your terms and conditions.

First Plus is a secured loan company. As a result they have to release their security on your current home and set up the paperwork and security on your new home.

So just like you have to pay valuation fees and conveyancing costs on your move and often to your mortgage company, you have to pay similar charges to them.

Do your sums carefully though - even if you have to pay more to settle it may be better to take out a larger morgage than continue to make payments at a higher rate of interest to first plus.

If you owe more than you originally borrowed, presumably you took out the expensive payment protection insurance? The only suggestion would be to pursue a claim against them that you were missold this insurance or weren't made aware of the cost, but not sure how much luck you will have - they probably have records of everything they sent you and phone calls etc.

R.

Timmsie_2

Yep you're right I do have the payment protection. Strangely enough I don't know why because I usually say no to these things.
But that's why I decided not to pay it off because after 5 years they refund the full amount (I've had the loan for just over 2 years).

Rafter

They do refund the amount, but you will have paid interest on the premium in the meantime, so it is not as good as it sounds.

If there is any reason why the payment protection might have been missold it is worth looking into. Check the small print and if you think you are disqualified because of your employment or a pre-existing medical condition or something it might be worth seeing if they will cancel it?

Otherwise it sounds like you are rather stuck with them for the next 3 years.

Not sure what kind of mortgage you are getting but worth getting one that you can renegotiate without penalty at 3 years. You will probably be better off consolidating your outstanding FirstPlus loan at this point rather than continuing with it.

Good luck

R.