Natwest Business Loan Expired - Help required

AWOL_2

Hi

A couple of years ago I took out a loan with Natwest to help buy a property to do up and then sell on, well that was the plan. The loan was on a two year term as I had no intention to keep it for any longer. Due to property market I have not been able to sell it however I have been able to rent it and the rent has been covering the loan costs aswell as leaving me a small tidy profit.

Now Natwest are calling the loan in, which they have every right as the two year term has expired, they said they can renew for 6 months at a cost of £2000 which is too expensive.

I am currently looking for a btl mortgage but i wont have it completed quick enough to pay off the loan and the loan is about to expire in a couple of weeks.

What are my options if any? What can natwest do if i dont agree to the new term at the £2000 fee. I should have a btl secured in about 4-8 weeks. I have never failed to pay any of the interest payments have a good credit history and just feel that natwest are bullying me into extending it for 6 months for an extortionate rate when i only need about an 8 week grace period.

any advise much appreciated.

Consumerist

The simple answer is that if you default on the current loan then your credit record will reflect that fact.

Perhaps you could ask another bank for a bridging loan but if it's unsecured then it's likely to be at high interest. A secured loan for a short time is not likely to be worth the while of a bank to set up.

PNPSUKNET

its not their fault, why didnt you start to look earlier?

AWOL_2

I am not saying it is their fault, i have not defaulted on the loan i am quite happy to continue on its current terms if they allowed me to.
In the past they quite happily extended it at a charge of £350 pa, this year they want to charge me £2000 for 6month extention and have only given me just over 1 month notice that the charge will be £2000.

I have begun looking for an alternative lender but nothing moves quickly this time of year.

What i am asking is what can they legally do if i do not agree to their new terms. Call in the loan? what does that entail?
I will continue to pay the interest charges, just i need another month or two to shift the debt and dont want to be forced to pay £2000 for 6 month extention.

Anyone else been in a similar circumstance? any advise?

AWOL_2

Consumerist wrote: »

The simple answer is that if you default on the current loan then your credit record will reflect that fact.

Perhaps you could ask another bank for a bridging loan but if it's unsecured then it's likely to be at high interest. A secured loan for a short time is not likely to be worth the while of a bank to set up.

The loan is in my LTD company name so the impact of a negative credit file is unlikely to effect me, however would it even be a default as i am and have always paid the interest back. Currently the bank is offering to extend the loan but want to charge me £2000 for 6 months rather than £350 charge for a year.

Consumerist

AWOL wrote: »

What i am asking is what can they legally do if i do not agree to their new terms. Call in the loan? what does that entail?
I will continue to pay the interest charges, just i need another month or two to shift the debt and dont want to be forced to pay £2000 for 6 month extention.

Well, I'm no expert but if you continue to make payments after the term of the loan has expired then it is likely the bank will assume acceptance of the new terms, add the £2,000 to the outstanding balance and increase your monthly payments accordingly.

antrobus

AWOL wrote: »

Call in the loan? what does that entail?

A demand for payment of the principle which, if not met, will lead to the appointment of an adminstrator or receiver of some kind - (depending on what kind of security NatWest have for the loan) - with any shortfall being likely claimed from yourself - presuming you gave a personal guarantee as per normal.

1999bob

there just being greedy. dont give them a penny - tell them they will have to wait till the place is sold. so long as you keep up the montly repayments theres nothing they can do! they cant repo the place if you make repayments.

Ive_A_Horse_Outside

1999bob wrote: »

there just being greedy. dont give them a penny - tell them they will have to wait till the place is sold. so long as you keep up the montly repayments theres nothing they can do! they cant repo the place if you make repayments.

You joined a forum and made your first post dredging up a 3 month post? W.T.F?