Welcome finance (Desperate for help) - any help/comments greatly appreciated

shortiejk

Hi

Posted this on another thread but have not got anywhere so starting my own...

I have a shared ownership property (share 25% value of share is £38000) I borrowed £7500 from welcome and then they consolidated my personal loan with them as well.

I borrowed more (now total of £21000) and was advised my payments would go up but the term would stay the same.

Low and behold, I got a statement a few months ago and it turns out its now over 15years! I pay £403 a month, only £20 of that seems to go on the loan and the rest pure interest.

They also gave me this loan when I was in arrears with my mortgage company. They asked me the amount and I guessed. They wrote out one cheque for one amount and then I was supposed to get the other cheque for the mortgage lender. I had to keep ringing to get it and then they gave it to me in my name so I had to cash it before sending it to the mortgage lender.

1st time round they checked with mortgage lender, this time round they didnt. Arent they supposed to?

By the time I pay it off, it'll be about £72000 paid back.

My own fault for not checking everything. If I pay back now it'll be £22000 to get rid of it.

My credit is now brilliant, I only use debit cards. Have one credit card which I always pay off in full. No other debts, defaults ro CCJ's.

But...

I can't get a loan at a lower apr to get rid of this one as I have been told

1. Due to responsible lending and not having enough equity
2. I always get asked how the hell did they manage to lend me that amount and I should get it checked out.

I have tried OFT, FSA, ombudsmen and haven’t really got anywhere.

I don't run from my debts and as I said pay them all off, just want to pay off welcome and get a lower apr somewhere else.

I also now need to buy a bigger place as I have two boys in a 1 bed place and I'm pretty much screwed. Due to the size of the loan and the little share I have, how am I supposed to sell and move on...

Any help would be grateful.

And yes, before anyone says it, I'll say it again, its my own fault for not reading all the paperwork fully
:mad:

I only took out more cos they called me and I was about to have my 1st son and was doing contract work. This gave me the ability to stay off work longer and get everything I needed. Wish I hadnt bothered now.

CLAPTON

very confusing

how much is your main mortgage, at what APR and how much per month, how many months left to pay

how much is the welcome loan, at what APR and how much per month and how many months left to pay

what is your salary / family income

how much equity do you have in the property

you say you want to move ... what size mortgage can you get? and what would expect to pay.

shortiejk

Sorry its confusing didnt mean it to be.

I dont have the exact figures to hand but hopefully my estimates will be ok.

My mortgage was £38000 for 25% share in Dec 2005. It now variable and I'm not sure what the rate is but I only pay £198 a month now and then pay rent for the rest to the housing association

Not sure what the apr is but the interest 1.7% per month. Current balance is £21700 left to pay. Last payment date will be Dec 2022

I pay £403.31 a month for the loan.

I'm not willing to give out my salary, (hope you dont mind) but earn enough not to have any debts and pay all bills,kids, etc.

My share is now worth £45000.

I would like to move, but have to get this sorted out 1st, work out all my finances and take it from there. I can give it another year or 2 before deciding to move. Which I think would be sensible.

Its nto the loan I'm disputing, I got it, I should pay it back, its more the amount I would be paying back and if there is anyway or reducing it i would gladly welcome it.

If there isnt, then i just have to liek it and lump it and pay for it.

thank you for replying

psoley

A loan of £21000 over 15 years paying back £403 per month, works out at 22.2% apr approx...

CLAPTON

1.7% per month is about 22.5% APR which is a very high rate for a secured loan.
Unfortuantely your total 'secured' debt is about 50k with equity of only 45k there is really no scope to remortgage the existing property to clear the Welcome loan off.


The options would seem to be either to get an unsecured loan to pay off the welcome one (very unlikley unless you have a very good salary and a very ggod credit record (unlikley form what you have said) and it would probably have higher monthly payments although over a shorter period.)

or moving to a new property and paying off the welcome loan as part of the remortgage deal.

However, that would also depend upon your income and family circumstances.

Maybe you speak to a mortgage broker and seem if there any options they can come up with.

PS .. it's OK not to say what your income is but I'm afraid that it is probably central to any resolution of the issue.

shortiejk

CLAPTON wrote: »

1.7% per month is about 22.5% APR which is a very high rate for a secured loan.
Unfortuantely your total 'secured' debt is about 50k with equity of only 45k there is really no scope to remortgage the existing property to clear the Welcome loan off.


The options would seem to be either to get an unsecured loan to pay off the welcome one (very unlikley unless you have a very good salary and a very ggod credit record (unlikley form what you have said) and it would probably have higher monthly payments although over a shorter period.)

or moving to a new property and paying off the welcome loan as part of the remortgage deal.

However, that would also depend upon your income and family circumstances.

Maybe you speak to a mortgage broker and seem if there any options they can come up with.

PS .. it's OK not to say what your income is but I'm afraid that it is probably central to any resolution of the issue.

Many thanks.

I can get an usecured loan for £15000, with my bank, but then that would still leave me paying the balance from the WF loan as well as paying for the unsecured.


I might just have to up my payments, till its about £15000 left, the get the unsecured to get rid of it.

I'm just annoyed at the rate lol. I tried for unsecured at £22K, but bets i could get, as i said previously, was with my own back.

Do you know if they should have contacted my mortgage company, or dont they have to bother?

once again thank you for all your help, its very much appreciated.

CLAPTON

A charge for the second secured loan should not have been allowed without the permission of the mortgage company. This would be for the Land Registry to prevent.
However, in this case presumably the first loan was dealt with correctly. I'm don't think these procedural errors make any real difference in your situation. You still owe Welcome the money.

Assuming welcome allow overpayments then paying as much as possible will reduce the total interest paid and reduce the capital outstanding. However it will be quite a long process.

With the mortgage situation in its currrent state there is no real prospect of getting a mortgage at more than 100%. Maybe the housing market will pick up and so increase the amount of equity in your property.
Sorry..not much use really.

shortiejk

You've been brilliant. thanks for everything. Well here's to paying it off quicker once I sought out everything.

Have a good evening