Paragon Secured Loan

babalooty

We have a paragon secured loan in the amount of £70k. If I recall they will not allow me to make over payments. Also to consolidate credit card debt I have applied to my mortgage lender for a top-up to mak it easier to pay-off my credit card debt - BUT the mortgage lender says I must seek permission from Paragon as they have a stake in the property.

Has anyone experienced this before? Can I appeal if they say no? is there any way I make over payments on my Patagon loan?

Thanks so much

Consumerist

I'm not an expert but logically the reason is probably that your mortgage lender has first claim on your assets in the evnt of default then Paragon. If your mortgage lender gives you a further advance then they will have first claim but the amount left for Paragon to claim from has been reduced by the amount of the new advance.

babalooty

Thanks for this help. We got into debt many years ago whilst my wife could not work. She is working full time now and we have the cash to make overpayments. However card interest rate is 34% - moving these debts to my mortgage lowers the interst paid so that any over payments I make reduce the debt quicker. I can assure we will not be spending again!! and will be paying back the debt using any and all means possible.

Mortgage lender has limits and can not lend upto £70k.

Thanks again. Wuuld love to determine other ways of paying this off. I can use the spare cash I have to make over payments on my mortgage/cards but T+Cs prevent me from doing it to my secured loan.

Thanks again

Consumerist

It would be sensible to ask Paragon whether they accept overpayments or partial repayments. It may be possible but you may have to pay an early repayment charge (normally up to two months interest on the amount repaid).

You could ask Paragon for a copy of the loan agreement or (if it comes to it) you may want to consider sending a Subject Access Request (SAR) to get the information. The SAR will cost £10.

. . . but first things first, try the asking politely method first.

babalooty

Many thanks for this advice. It is a great help.

Consumerist

I would, however, draw you attention to point (4) of the post from opiniuons4u. It is unlikely that your secured loan with Paragon charges 34% APR. Accordingly, it would be sensible to concentrate on paying off the card debt as your first priority.

Edit
Here is a forum post on the Consumer Action Group website which you might find interesting