Cannot move home due to Welcome finance

cheekychco

richardvc wrote: »

I haven't read the thread so forgive me if this is old news.

Without being cruel to the OP this is what happens when the likes of Ocean & Welcome get involved in your personal finances. Big loans over long periods with low repayments = front loaded interest + high settlement figures.

I'm sure we will hear about this more and more as the years go by - everyone warned about it happenning. Everything was always secured on the property so the loan companies couldn't lose.

Whilst I know you need to move, I don't think it would be morally correct to go bankrupt / IVA. I wish you luck and hope you find a solution.

you'll see from other posts, even one just before this, I have no intention of going bankrupt or getting an IVA. Its even in my last paragraph you quoted , I just want to move and will still pay it....

thank you for wishing me luck.

cheekychco

ok here are a few points..

1. not trying to get out of paying the loan. Technically I've already actually paid it back plus about 6k already in interest. Never missed a payment on it and will continue to pay. i've said it time and time and time again. I borrowed, i signed, i pay it back.

2. Did not at any point lie about wages as you have to provide wage slips and clearly stated that I only own 25%

2. Housing association should have been contacted. I was not aware of this till recently but Welcome shouldve have been. Therefore, from what I've been told so pls dont jump down my throat, that it should not be secured as not all parties agreed.

3. FOS were actually very surprised by whole situation as were a number of mortgage lenders, high street banks, and housing association who are now also looking at it from their side. I have completed the complaint form, as they advised, due to the complaint not being handled correctly by Welcome.

Hopefully that will clarify a few points and clear up an inclination that I'm trying to get out of paying it, that I'm not taking responsibility etc. If I was, I would've done it a long time ago....

And a sincere thank you for everyone that has given advice and constructive criticism.

danielanthony

Hello again,

Have you tried Zopa to get a personal loan to pay off Welcome? You seem to have a good job etc and when you ask for money on Zopa you can put your case forward to people to generate the funds you need. I'd imagine the rate will be high but unsecured and better than Welcome!

theoretica

This whole situation does rather make a mockery of the idea of a secured loan- securing 21k on 7k of equity. As this loan is mostly 'secured' on thin air I don't see how they can prevent you selling up!

From your numbers it looks like you may be paying interest on most of the money twice- you borrowed 7500 +1500 +4000 which somehow turned into a loan of 21000. Do you think they included the interest that would have been payable over the full term of the loan in the settlement figures when they paid off your old loans and opened new ones? This would mean they are now charging you interest on the loan which already includes interest- so in effect paying interest twice -- with interest on the interest for good measure. If this is the case I sincerely hope you can get it wound back to pay them only the money you received from them + one lot of interest. Paying what you owe is right, and you clearly plan to. Letting incompetent bloodsucking leeches make an unreasonable profit out of you is another matter and only encourages them.

housebuyer_abc

theoretica wrote: »

This whole situation does rather make a mockery of the idea of a secured loan- securing 21k on 7k of equity. As this loan is mostly 'secured' on thin air I don't see how they can prevent you selling up!

From your numbers it looks like you may be paying interest on most of the money twice- you borrowed 7500 +1500 +4000 which somehow turned into a loan of 21000. Do you think they included the interest that would have been payable over the full term of the loan in the settlement figures when they paid off your old loans and opened new ones? This would mean they are now charging you interest on the loan which already includes interest- so in effect paying interest twice -- with interest on the interest for good measure. If this is the case I sincerely hope you can get it wound back to pay them only the money you received from them + one lot of interest. Paying what you owe is right, and you clearly plan to. Letting incompetent bloodsucking leeches make an unreasonable profit out of you is another matter and only encourages them.

You might be right there - the maths doesn't seem to be quite right - they may well have rolled up 'expected' interest into each loan settlement prior to opening a new one for the top-up --- now that would be nasty and I'm guessing ever so slightly unfair

cheekychco

Thank you housebuyer and Daniel. I'll look into that. does appear that each time i topped up they've included the interest when settling previous loan before adding new loan.

when working it out, in total I have paid back around 26k already. God was i stupid or what lol.

are they allowed to do that? I'm still learning about top ups etc and still unclear how that part works.

housebuyer_abc

cheekychco wrote: »

Thank you housebuyer and Daniel. I'll look into that. does appear that each time i topped up they've included the interest when settling previous loan before adding new loan.

when working it out, in total I have paid back around 26k already. God was i stupid or what lol.

are they allowed to do that? I'm still learning about top ups etc and still unclear how that part works.

I think they are probably allowed to, but its a little unfair, if you point it out though they may well 'fix' the issue.

You may need some 'external' help like CAB or someone to help you approach the subject with the company as they are likely to respond with some 'Terms and Conditions' fob-off otherwise

cheekychco

Tried Cab, they sent me consumer credit who sent me to the FSA who sent me to office of fair trading. the told me to contact FOS lol. so as you see I've been roudn the houses on this one. I'll contcat them and add that to the complaint to see if it can be fixed. cheers again

cheekychco

danielanthony wrote: »

Hello again,

Have you tried Zopa to get a personal loan to pay off Welcome? You seem to have a good job etc and when you ask for money on Zopa you can put your case forward to people to generate the funds you need. I'd imagine the rate will be high but unsecured and better than Welcome!

Zopa only lend up to £15k and I need approx £22k to clear it. Even though that would leave me with £7k to pay back, I can afford to pay back the unsecured loan as well as the remainding loan at £403 per month at the same time. I can get unsecured at £15k as have been offered before, elsewhere, but welcome wont except that as an offer of final payment.

theoretica

Do you have a useful employee assistance scheme at work, or are you a union member with legal advice that way? Sometimes insurance policies come with legal advice.