Business Loan of £12000 secured on property still paying after 20 years.

mcarter

Hi there.
First time on here and I would like any advice you could give me please.
I am writting this on behalf of my father who is due to retire next year and is worried about paying off the remaining amount on a business loan he took out against the family home back in 1989 for £12,000 from Yorkshire Bank. Due to a few missed payments and a court appearance with a wopping £4000 fee added to the repayment, he still owes the bank £9000+. I have worked out that over the 20 years he must have paid for the original loan 3 times over and with repeated arrassment from the bank I am worried that the only option would be repossession. I was wondering if there is any legal implication regarding the legitimacy of the original loan agreement since it was taken out back in 1989 on a fixed term of 10 years. Also we don't have the original agreement so would it be possible to request this from the bank. Any help regarding this would be very much appreciated as this has been an on going argument in our house for nearly as long as the loan.

bengalknights

best to ask for the original signed agreement and if they cant provide it then maybe look into getting it wrote off

mcarter

Thanks for your quick response. I will request that. Wouldn't they try to give me a copy of that agreement and claim it is as good as the original.

Wutang_2

bengalknights wrote: »

best to ask for the original signed agreement and if they cant provide it then maybe look into getting it wrote off

Thats the attitude

Xbigman

Thats the attitude

Far too many people post just looking to write off debts but this looks like a case where that is exactly the right attitude.

Definately send the CCA request to yorkshire bank. However, your dad needs to look at what he can do if the debt is enforcable. Downsizing, working on longer, a relative buying part of his property, some sort of consolidation loan or equity release are all possibilities.
Regards



X

CHR15

When the borrower missed the payments, the contract was broken so the 10year fixed term became irrelevant.

IMO the best bet would be to make them an offer to clear the remainder of the loan. It is already in default, and has been for some time.
It is evident they have already had their pound of flesh so I cant see as they would get too heavy.

Offer them 30% of the amount outstanding to clear the lot (Full and Final Settlement).
If they say no, up the offer slightly.

If they accept any offer you make, ENSURE you get it in writing before paying and make sure it has Full and Final Settlement on the letter.


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RAS

Hi

Check whether there is any PPI on this debt, as this can be reclaimed.