Mis-sold secure loan

wanttosell78

Hi

3 years ago we're sold a secured loan (over £25,000) against a flat by Picture Finance. Taken in by all hype neither of us fully realised the implications of what a secure loan means. With that taken on board we fully appreciate thats to do with us. We still think though that Picture Finance mis-sold the secure loan as it wasn't made clear that we would have to pay some or all of it back if we moved.

Also as we never had the equity in the flat in ever pay this off even at the height of the property market. Now we want to sell but there is not enough equity to clear the loan, we're just clearing the mortgage. Where do we stand? Do we have a case for an unfair loan as there was never a way of this being cleared?

My partner and I are currently stuck and don't know what to do.

Thanks,

Typhoon2000

Your supposed to clear it with the monthly payments, not necessarily by selling your house. Thats how your supposed to clear your loan. So their was no misselling. Securing the loan on the house is purley for the Lenders benifit to give them a little extra security if you stop making payment to a loan or move without letting them know. House prices can go up or down so you should not rely on any equity in your house. As with plenty of people in negative equity you, can not afford to move right now. You'll need to wait till your house appreciates or find the money to repay the loan from somewhere else.

Beast

Get out of here! Seriously, I hate this buzzword of the moment 'mis-sold' being used by every tom !!!!!! and harry who wants to avoid paying back what they borrowed.

cooltt

Yes i agree very difficult to see how you were mis sold this loan, it's your responsibility to read all the terms and conditions before you sign anything. You then have to oppotunity to ask and clarify anything you don't understand.

However there's no need to panic, your situation is that if you couldn't pay back the loan picture could get a court order to force you to sell your property even then your morgage company gets first bite of the cherry so there may be no cash left for picture anyway.
If you are saying that you can't move until the loan is payed then i find this very unusual becasue in theory if the loan was over 10-25 years then your stuck in your flat until then? I think you need to check this it sounds wrong to me. Like the previous poster says you just carryon making the monthly payments where ever you move to but picture will still have a "charge" on your new property until it's payed off.

Wutang_2

wanttosell78 wrote: »

Hi

3 years ago we're sold a secured loan (over £25,000) against a flat by Picture Finance. Taken in by all hype neither of us fully realised the implications of what a secure loan means. With that taken on board we fully appreciate thats to do with us. We still think though that Picture Finance mis-sold the secure loan as it wasn't made clear that we would have to pay some or all of it back if we moved.

Also as we never had the equity in the flat in ever pay this off even at the height of the property market. Now we want to sell but there is not enough equity to clear the loan, we're just clearing the mortgage. Where do we stand? Do we have a case for an unfair loan as there was never a way of this being cleared?

My partner and I are currently stuck and don't know what to do.

Thanks,

I think the phrase you are looking for is misbought not missold.

wanttosell78

Thanks for all you quick responses.

Misbought rather than missold is probably totally true. Regrettably.

Tixy

Seeing as you realise you probably didn't read the paperwork properly I'd say its worth doing this even now. Do you know what the APR on your loan is? how long did you take the loan over? how much have you managed to reduce the balance by with your repayments over the last 3years?

Whilst it may not change things it would be useful to know, maybe it will help inspire you to find some money to make overpayments to the loan, which would help pay the loan off quicker in the long run.

jonesMUFCforever

Did you not see ''You could lose your home if you default on our loan'' which would have been prominent when you signed on the dotted line?

[Deleted User]

the only real option is to wait until you have enough equity to repay the loan and the mortgage and then sell(could be some time)or try and get an unsecured loan to pay off the secured one(highly unlikely tbh)
as for mis-sold?....nah

jonnyd281

Picture will let you "port" the loan to your new house. You may have to pay a bit off the loan but it would be worth you giving them a call.