PLEASE Help Rid Us Of Our Little Ball & Chain!

msw_2

i'm sure there are laws to protect consumers against "extortiante credit"...you should look into this...maybe try the CAB or some other other money advice organisations...you could do an online search. I'm sure there is some legislation on this to protect everyone from dodgy lenders....A quick google search brings up this

http://www.oft.gov.uk/NR/rdonlyres/CACADF9E-6DDC-4184-A508-029C8592EF78/0/oft014.pdf

sorry don't have time to read the article myself but itlooks like it may be of use!

danjberry

i agree with pot o gold, just give them a call because if they were willing to give you a loan based on the house price, switching to a repayment mortgage should not be a factor they should worry about.

meanmachine_2

Sace wrote:

Hiya!

The mortgage is for £155,000 and we pay iro £900 per month.

I make it that the interest rate on your mortgage is 6.99% - which is ridiculous.

If you have excellent credit ratings why are you paying this much for your mortgage?

Sounds to me like you "launched" onto the property ladder before your finances were in order, and have suffered from this decision ever since.

It's not really a ladder if you're stuck in your property for 24 years.

MortgageMamma

Have you gone back to the original IFA and asked him the following questions:

1. Why the 17,500 arrangement fee. and who got what out of that
2. why did he select this particular company
3. why did he not advise you correctly on the contract you were taking

Have a browse through the financial services authority website and see if there's anything that can help www.fsa.gov.uk

The only solutions I can think of is to take a northern rock together mortgage and pay the loan off. Coventry building society also have a similar product. Before you do anything though, write off to paragon loans for a settlement figure so you know the exact amount you need to borrow.

Sorry you have had such a negative experience of financial "advice". You adviser sounds like one of the wideboy salesmen that let our professional image down so badly. We are not all like that most of us are very conscientious and genuinely help our clients!

HTH

MM

Little_Miss_Winner

HiYa MM,

Thanks for your contribution to Saces plight. I am not at all *up* on mortgages, nor do i pretend to be, i just thought that the sums added up to an incredible amount of money!

Don't know whther you seen Saces earlier thread (same content) on the loans board, but although I dont think she has asked for a settlement figure as such yet, but heres her though with regards to the settlement.

Quoted from Sace.

The secured loan was for £35,000 (ouch, it hurt's to say it) plus a staggering £17,500 arrangement fee. Our monthly payments are £296.14.

Hang on, just had a thought... If we try to settle this loan we're also going to be charged for the £17,500 arrangement fee, plus six months interest, plus anything else they decide to stick on top. We'll never get personal loans for that amount. Now I'm really miserable

MortgageMamma

She's right, its very unlikely she would get personal loans for that much - I think she first of all needs to get the settlement figures

secondly. see if this can be consolidated into a purchase mortgage with northern rock/coventry b.s.

thirdly she needs to speak to that tw @t of a financial advisor and get him explain exactly why it is they have a loan with a 17.5k arrangement fee, that they were not advised on, and consider making some sort of a complaint - a 17.5k arrangement fee is not treating a customer fairly. it is taking unfair advantage of someone in a desperate position, and I'm sure there must be a way to get redress for that

fivemice

Just a thought, but it wasn't £17.5k in interest that would end up paying, was it?

Little_Miss_Winner

Mmm, good point, but i dont think so, as in an earlier post she said;-

however our IFA found us a secured loan over 25 years at rock bottom repayments (8.5% on £35,000 plus a staggering £17,500 arrangement fee added to the balance)

We will just have to wait till Sace comes back, too see what she is going to do next...

Sace

Hi everyone!

Thanks for all your postings over the past few days and sorry I haven't been around.

Progress to date:

1. We have requested a settlement figure from Paragon - this is due in the post any day now

2. The £17,500 arrangement fee was a complete farce - it was a 'mis-print' on the illustration and we found the correct arrangement fee is actually £1,750. (I thought I would never have agreed to a £17,500 arrangement fee and was quite depressed to think I had been so stupid) :doh:

3. I called Paragon who were very helpful. The chap explained if we were looking to change mortgage product with our current provider, Northern Rock shouldn't even need to ask for a deed of postponement. The only reason a deed of postponement is needed is if we were looking to borrow more money or switching provider.

So, everything is much clearer now - it's definitely a lesson learned and a new IFA will be sought out and used in future. That said, any advice will be posted here for a few hundred second opinions before the final decision is made!!

I just wanted to thank everyone for their advice and support (especially pot'o'gold!) and also to say I hope I can return the favour to you all one day!

Sace

:T

Little_Miss_Winner

Hiya Sace,

Phew! bet that was relief, glad you have got it sorted out a bit clearer now.
I couldn't sleep!!!:rotfl:

Thanks for coming back and telling us how you got on, and hope to speak to you lots more in future!

Good Luck
pot
xx