Urgent Advice Needed On Secured Loan.

[Deleted User]

I have £60,000 equity in my property and need a secured loan of about £6,000 to repay over 5 years. The problem is I am 77 and don't have a good credit record. I have applied a couple of times in the past few years, to consolidate some smaller debts, and always end up getting a rip off quote which I have refused to accept. I'm happy with anything up to an APR of 20%, which must be fixed, and can't understand why I keep getting quoted 30% with a variable APR. It's just obscene. Plus, i'm not prepared to pay any more than £500 in rip off fees. Is it really impossible for me to get such a deal? I'd consider that more than generous for them anyway. Can anyone recommend somewhere for me to try?

Tixy

Do you already have a mortgage on the home? How much for? is it repayment or interest only? how soon it is due to be paid off? do you own the property just in your name?

I imagine that your age might be causing some of the issue - despite the fact that it would be secured. Are you retired? what is your annual income?

Ia it still for consolidation purposes you want the loan? if so then most people would advise against changing unsecured debts to secured debts. What is the reason for wanting to consolidate? to reduce the monthly outlay or to reduce the interest paid?

[Deleted User]

Thanks for the reply. I have £43,000 outstanding on my mortgage, it is a repayment mortgage, and I am comfortable with my monthly repayments. It is due to be paid off in 12 years time. I own the property jointly with my wife and, touch wood, we are both in good health. We would be applying for the secured loan jointly. I am retired and my annual income is about £18,000. I still want a loan to consolidate some unsecured debts that my wife and I have and we are confident that we can afford the monthly repayment and that it's the best thing for us. We just want it that way if possible. We have emerged from a long tunnel of debt and know where we are now financially.

We still both chuckle at one quote we got from loans.co.uk a few years back who asked for £2,500 in various fees. We never imagined such amounts were possibly asked for.

[Deleted User]

I have had one quote through for a secured loan, which though steep, may be just about bearable on principle. I have a serious concern about it being variable rate though. The company is called Prestige. Is this whole variable rate scenario a bit of a scam or a legitimate factor that is incorporated into their business model? I have been quoted a monthly figure of roughly £180 that I can afford on a 5 year deal. What's the chances that this figure might rise?

Tixy

Secured loans are nearly always variable - and as the BoE base rate will rise I think its likely this would rise to.
The problem with small secured loans is that the fees will always seem high compared to unsecured as they charge to value the property, regsiter the charge with the land registery etc etc

Whilst I still don't think its a good idea to consolidate your debts - have you approached your mortgage lender to see if they would consider it? Their fees might be lower as they already have a charge on your property.

I would still try to keep the debts unsecured if it were me, even if that meant considering something like a debt management plan.

jonesMUFCforever

Come off it no lender would lend to you on a mortgage with a maturity age of 89!

Something very fishy here.

geoffky

jonesMUFCforever wrote: »

Come off it no lender would lend to you on a mortgage with a maturity age of 89!

Something very fishy here.

You want a bet?..the madness that was around a few years ago left me speechless...even today some idiots are taking out 40 yr mortgages.....debt junkies just wanted more and more and the banks obliged..Liar loans were normal . ect ect ect.

[Deleted User]

I approached Halifax, my mortgage provider, and they wouldn't increase my mortgage. I appreciate the advice you have given me with the best of intentions Tixy, but my wife wouldn't accept a DMP. The only thing that is holding us back is this variable rate issue. I am happy and can stomach rises in line with base rate, but i'm just concerned about willy nilly rises without justification. That doesn't happen right?

JonesMUFCforever, i'm not sure what exactly your comment is supposed to mean. I got a joint remortgage with my wife from Halifax in October 2003 of £55,000. I was 69 and she was 67. Are you declaring this completely false and untrue? That seems to be the gist of it unless i'm reading it wrong. Truth be told, you will end up looking rather silly i'm afraid. I can't deny that I was surprised to get accepted at the time, but that's what happened. The nation got drunk on easy and unsuitable credit and we are now all paying the price. Where have you been the last few years?

jonesMUFCforever

What I am saying is that you have no chance now (after some normality has returned to the market) to get any further mortgae advance.

[Deleted User]

No worries. I thought you were insinuating I was talking complete nonsense for some bizarre reason. Anyhow, I wish someone could offer me some opinions on this variable rate increase issue. I would be very grateful if they could.

jonesMUFCforever

Before you apply to anybody please check the maximum age whereby you will have to pay back any loan.
I think you will find most will state 75 for secured loans such as mortgages.