Firstplus nightmare

bullspeaking

:eek:
Trying to settle my firstplus loan don`t understand how they come up with
the settlement figure always the same

Took out £41k (i know wrong move) over 20 years (very very bad)
i.e 240 payments of £483.74 at 1.093% a month i.e 13% a year (now 15%)
this is killing ME !!!

got a good wage rise & looking to swallow the dept in a mortgage (save me a packet)

Have paid them just over £24k & they want £43k

acording to fine print BALANCE OF LOAN
INTREST UPTO SETTLEMENT DATE
DISCHARGE FEE

Does anyone know how they work it out makes no sence ????
PLEASE HELP :beer:

sammy115

Phew thats hefty. Working it out over the 20 years you would have paid £116,000. You have paid them 24K - add the 43K and you are 'saving' short of £50k. I do know that the interest is stacked up front so that you pay more interest at the begining of the loan, that is why you don't appear to have paid anything off. However, I am sure there is a thread on the board somewhere regarding hefty penalties on paying loans early.

Have they given you the figures broken down into the fine print?

sammy115

Phew thats hefty. Working it out over the 20 years you would have paid £116,000. You have paid them 24K - add the 43K and you are 'saving' short of £50k. I do know that the interest is stacked up front so that you pay more interest at the begining of the loan, that is why you don't appear to have paid anything off. However, I am sure there is a thread on the board somewhere regarding hefty penalties on paying loans early.

Have they given you the figures broken down into the fine print?

sammy115

ooops!!!!!!!!!!!!

bullspeaking

no have asked them but will phone them to get them to break it down for me i worked out i should only be paying them approx 30k on top of the 24 already paid ??

lynzpower

Seems pretty crazy to me too. Really sorry to hear of your situation.

PLease, keep posting, and lets get our heads together for you

Welcome
lynz
x

Xbigman

I haven't done the maths on paper but if you have paid 24k to them thats just over 4 years of payments out of 20 years. In the early years you would be paying mostly interest and only about 1500 to 1800 a year was coming off the loan. So the loan balance was still at around 33k when you asked for a settlement figure. A loan that old will have terms and conditions that allow them to charge a % of the interest not yet paid. Given the frightening amount of interest they were charging you I could see 40k+ as more than possible as a settlement figure.

You should phone them and query the figure as it just could be wrong, but don't get your hopes up.
You should also get all the figures from you remortgage together and post that on here with everything you have about the first plus settlement too. We can then compare them and see if its actually worth it for you. I would think it would be but its worth checking.
Regards



X

david_hellier

Who owns First Plus?

sproggi

david_hellier wrote:

Who owns First Plus?

It's a subsidiary of Barclays

Sproggi

bullspeaking

Xbigman looks like your right:T but i should still be able to get my self out of dept
A current mortgage 39k £260.00 a month
B IVA 11.5k £275 a month
C first plus 43k £517.00 a month
keeping current mortgage & takeing out another mortgage with them for a max of 55k 2 year fixed deal at 4.75% = £330.00 a month (quotation came today)

ADD the two mortgages together 39k 55k = 94k £590.00 a month
saving me £462.00 plus with a intrst rate overall of 5% not the 15% currently paid to first plus (whish me look) :rotfl: :rotfl: :rotfl:
:j

lynzpower

Wow, this looks as if this is the solution for you

Do you have to pay to come out of the firstplus loan though? Just a thought?