offer of: managed loan..confused

dancingfairy

No No No - do not let them put it on your mortgage - 1) it doesn't sound 100% like you know what they are talking about and 2) it might put your house at risk.
With the managed loan it sounds like they are trying to sell you a product which might increase your debt which I think is against guidelines.
You need to stop - do not sign anything. Get FREE professional independent advice from National Debtline or CCCS or your local CAB.
HSBC sound like they are only interested in themselves and not helping you at all and sound like they are breaking guidelines.
df

craigp_2

I was offered a managed loan and stupidly took it,mine was for £8500 and the payments were £150. They didn't tell me that when I started making the payments that £65 would be coming off for interest so at the start only £85 a month was coming off :mad:

As the balance came down obviously there was less interest a month being charged but still :mad:

DarkConvict

craigp wrote: »

I was offered a managed loan and stupidly took it,mine was for £8500 and the payments were £150. They didn't tell me that when I started making the payments that £65 would be coming off for interest so at the start only £85 a month was coming off :mad:

As the balance came down obviously there was less interest a month being charged but still :mad:

Think of it like a mortgage, you pay off interest and it is secured against the house.

As to the OP, i would advise to say clear they are not suitable for most people.

2nd_time_around

sorry but what is an OP ?

DarkConvict

OP = Original poster, in this case you. As you started this thread/topic. Its forum talk

gilligansyle

Under no circumstances should you add anything to your mortgage, if you miss payments your home is at risk. Although there may also be something in your lease about them so you may need to check that out too.

It seems to me that you are in a bit of panic mode and not really catching what is said on the phone. Couple of things you can do; make them repeat everthing and write it down and insist that everything is followed up in writing, then you can sit down and look at it at leisure and take it to someone who can give you independent advice CAB,CCCS or similar.

Try to do the Statement of Affairs, it does sometimes help you to sort it out in your head, and at least forces you to find all your paperwork.

Good Luck

Margin_Walker

Just for the sake of clarity. A Managed Loan does NOT involve a charge on your property and is not secured as such in any way. I'll avoid getting into any lengthy discussion about them other than to say they are right for some people. It obviously depends on your circumstances.

2nd_time_around

Thanks everyone but I think I need to clarify a bit I am discussing 2 completely different things here. The first is that I am in arrears with my service charges and ground rent (at the moment £2,000 with another £1500 due in January) and the debt recovery people have suggested adding the entire £3500 on to my mortgage, as service charge is a priority debt and I really cant pay this at the moment I would have thought that this would be ok. The second situation is refering to the managed loan to consolidate the various debts I have with HSBC, after reading your posts I now have a much better understanding and even though I realise it will be unsecured...............Im going to run a mile!

gilligansyle

gilligansyle wrote: »

Under no circumstances should you add anything to your mortgage, if you miss payments your home is at risk. Although there may also be something in your lease about them so you may need to check that out too.

Hi the reason i put at the end of this about the service charge is precisely for that reason, you would not normally be advised to add to your mortgage but it may be something that the lease allows for, my previous flat had such a clause in the lease allowing for the service charge to be in effect a charge on the property. If it is adding to existing mortgage, is it extending the term, or will your payments go up? If an additional charge, it has to be paid separately and any missed payments could result in repossession.

As for the managed loan, as stated previously that only takes into account what you owe HSBC and may leave you paying over a longer time and mean that others don't get paid. You need to take some free advice from the debt charities on this.

dancingfairy

I am glad you appear to be working things through but I would definitely seek free independent advice form one of the debt charities regarding your situation ie CCCS, National Debtline or your local CAB. It sounds like adding your service charge to your mortgage may be an option but think it through carefully from every angle and also make sure that you have understood what circumtances have led to you being in this difficult situation as obviously you don't want to repeat the problems - again the debt charities can help with this and make sure you have a realistic thorough budget and you may find that a debt management plan (DMP) may be an option for you or possibly other things.
Best of Luck
df