Advice Please

Monique67

I took out a secured loan in 2000 with Ocean Finance for £4000 in 2003 I borrowed another £4000 however Ocean said it had to be done with one of their other complanies Blemain Finance and as I was in need of the cash quickly I agreed although it meant that the figure to repay was now just over £13,000. I have paid £200 pm since that time. I have recently put my house on the market and have a buyer just £170,000 and have found a new property at £155,950. This will leave me with £15,000 out of this my intentions were to pay solicitor & estate agents fees of £6,000 and the balance of my mortgage at £6,000. This leaves me £3,000 which I had intended to use on settling a large part of the secured loan. However recently I was advised that this loan can not continue in my new property as it is secured against my current property. In view of this I requested an early settlement figure which was far more than I had anticipated being just under £23,000. .

I now find myself in a position where by I will not be able to sell my property and will be stuck making payments for the next six or seven years. Does anyone know if there is a way of carrying this loan over to a new property or how to challange Blemain?

Thanks for taking the time to read this.

Tixy

In what way do you want to challenge Blemain? Because they won't let you carry the loan over or because of the balance or something else?

A secured loan is not usually transferable so it is to be expected that you would need to repay the loan when you sell your house.

You would still be able to sell your house, if you have £164k in equity, but you may need to get a small mortgage to be able to afford the new house you have chosen. This mortgage would probably be at a better APR than you are currently paying on the secured loan.

What APR are you paying to Blemain?

Rafter

Monique,

I can't see why you would want to repay your mortgage and still be stuck with this horendous sounding secured loan.

You obviously have a nasty redemption penalty clause and also rolled up Payment protection insurance on your loan.

I cannot understand how you can possibly owe £23,000 having only taken out £8,000 in borrowing and repaying for 7 years.

Something doesn't smell right here and suggest you go and see a debt charity or citizens advice about your options, including whether you were missold the loan insurance.

Good luck

R.

Monique67

I am struggling to get a mortgage due to arrears on Blemain & also I am in dispute with my bank re a car loan and PPI resulting in my credit rating being poor. I do not have a clue what the interest rate is with Blemain I will look at my things and let you know. I want to challange the fee for early settlement, if possible

Monique67

Just looked at paperwork the loan amount was £12000.00 (this was not what I borrowed it was fees for changing brooker & for surveying fees I actually borrowed a further £4k on top of the existing 4k which I had been paying. This is the repayment details:

Amount of Loan £12000,00
Protected Payment Plan Premium £1770.00
Total Loan £1377,00
Rate of interest 1.227%
APR 15.8
Number of months repayment 180
Monthly repayments £190-10

The statement I recieved in January this year has Payment Protection - Premium £1,770,00 Expiry date (unless cancelled by you) 12 January 2007. So I don't think that is causing problems.

Looking at the statement it appears I am charged around £240 pm interest so my monthly payment isn't even covering that. I am so stupid why I did not look into this before hand I will never know.

Anyway thanks

CLAPTON

Monique67 wrote: »

Just looked at paperwork the loan amount was £12000.00 (this was not what I borrowed it was fees for changing brooker & for surveying fees I actually borrowed a further £4k on top of the existing 4k which I had been paying. This is the repayment details:

Amount of Loan £12000,00
Protected Payment Plan Premium £1770.00
Total Loan £1377,00
Rate of interest 1.227%
APR 15.8
Number of months repayment 180
Monthly repayments £190-10

The statement I recieved in January this year has Payment Protection - Premium £1,770,00 Expiry date (unless cancelled by you) 12 January 2007. So I don't think that is causing problems.

Looking at the statement it appears I am charged around £240 pm interest so my monthly payment isn't even covering that. I am so stupid why I did not look into this before hand I will never know.

Anyway thanks

these figures look OK

but the settlement figure you have been given seem all wrong
have you missed payments during this time and had fees etc added on