We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
HSBC Interest Hike
I have a business loan with HSBC of £50,000. Unfortunately, I had to close my shop a year ago and HSBC agreed to let me pay the interest only for a year, although they increased the interest rate by 0.5%. Therefore I have been paying 3.5% above base in 2009.
It is now time to review this loan and I have asked for a further year on interest only so that I can sell my house to pay off the loan when the market improves - hopefully next year - HSBC by the way have a second charge on my property.
I am at present out of work, which they now know.
They have just come back to me with an offer of a further 3 months interest only, but have increased the interest rate to 6.5% above base making the interest at present 7%. This makes it virtually impossible to meet the repayments.
"The bank is concerned over my
1. Failure to convert back to capital repayments as agreed - NOT TRUE
2. My property has not been sold/remortgaged to repay the borrowing. THIS WAS NEVER AGREED"
I'm not sure what I should do. Do I sign the forms and continue, offer to pay some money off the loan? I do have a small amount.
Has anybody any suggestions or have been in this position before?
Thanks
It is now time to review this loan and I have asked for a further year on interest only so that I can sell my house to pay off the loan when the market improves - hopefully next year - HSBC by the way have a second charge on my property.
I am at present out of work, which they now know.
They have just come back to me with an offer of a further 3 months interest only, but have increased the interest rate to 6.5% above base making the interest at present 7%. This makes it virtually impossible to meet the repayments.
"The bank is concerned over my
1. Failure to convert back to capital repayments as agreed - NOT TRUE
2. My property has not been sold/remortgaged to repay the borrowing. THIS WAS NEVER AGREED"
I'm not sure what I should do. Do I sign the forms and continue, offer to pay some money off the loan? I do have a small amount.
Has anybody any suggestions or have been in this position before?
Thanks
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.3K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.4K Work, Benefits & Business
- 601.2K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards