First Plus home secured loan hell

jacdean

Please can someone give me useful advice....................

In feb 2008 i took out a home secured loan through First Plus, of £25,000, over 25 years in my maiden name against a property that only i own.

I have since got married and we are selling my house and buying a bigger property in both our names.

I do not want to repay the £24,000 still outstanding (i have paid every single payment on time over the four years with no problems the last 3 years being from a joint account in my married name).

I have phoned First Plus today who have now informed me that they are no longer able to issue new loans as they have gone out of business, they are only there for exsisting customers.

To my shock this apparently means that i cannot sell my house without repaying the outstanding £24,000 - unless i am buying a new property in my name solely (i cannot get the mortgage required for the new house without taking a joint mortgage with my husband).

This is because they went out of business in Mid 2008 (about 4 months after tying me in to a 25 year loan term)

They have said that if they had not gone out of business then they would simply value the new property, check our payslips, then transfer the charge from one property to the other and from single name to joint names.

Because they have gone out of business they are not able to do the above as they would technically have been issuing a new loan to repay the old one and they are no longer allowed to issue new loans.

They state they have to go by the land registary so i said i could pay to add my husband to the land registary on this house before we move then it would match up, but i was told that they would not authorise this. i would need their permission to do this as they have a charge over the property and they would not agree to it.

I was basically told that to buy a house jointly with someone else, in the next 21 years (before the loan terms naturally ends), i will HAVE to repay the outstanding balance to them!
They will not agree the sale of my property without the repayment being made!

Surely this cannot be my only option?????

It cannot be right for them to back me into a corner like this???


Its not my fault they have gone out of business.
I have been a good customer and met every repayment without any problems.
I just want to buy a bigger house with my husband for us and our children to live in, without being forced to find another £24,000.

Surely they cannot expect a 20 something year old single female to not want to buy a house with someone else in the 24.5 years left on the loan they let me take out when they must have known they would be going out of business a couple of months later?

Please can someone give me some advice?

Thrugelmir

Why not consolidate this loan into your new mortgage? As the interest rate will be cheaper and the secured loan would have been factored into any affordability calculation by the new lender, if it were transferable.

jacdean

This would make sense but by doing so we would then not have a 25% deposit against the new mortgage and this then messes up the interest rate we've been given etc etc.
Just do not the the best thing to do and feel really angry that they can back me into a corner because i decided to get married during the 25 year term!!

fatbelly

It is a secured loan, secured by way of a legal charge.

This will need to be dis-charged by payment of the sum owed, on the sale of the property.

You're doing well to be shot of them after only four years - horrendous bunch.

And I haven't forgotten (or forgiven) Carol Vordermann for promoting them.

The redemption figure may be challengeable. Ask on

http://www.firstpluscomplaints.co.uk/

Thrugelmir

If you can afford a larger mortgage. Why not make a concerted effort to repay as much of the loan as you can.

poppy10_2

jacdean wrote: »

This would make sense but by doing so we would then not have a 25% deposit against the new mortgage and this then messes up the interest rate we've been given etc etc.

You don't really have a 25% deposit then, do you? Normally you would subtract your debts from your assets to calculate your net position.

jacdean

You are both right. One way or another this will be getting re paid.
i am just so angry to be pushed into a corner as they told me themselves that if they were still in business then there would be no problem with transfering the legal charge to the new property.

Home secured loan - never again!!!!!

FraudBuster

fatbelly wrote: »

It is a secured loan, secured by way of a legal charge.

This will need to be dis-charged by payment of the sum owed, on the sale of the property.

You're doing well to be shot of them after only four years - horrendous bunch.

And I haven't forgotten (or forgiven) Carol Vordermann for promoting them.

The redemption figure may be challengeable. Ask on

http://www.firstpluscomplaints.co.uk/

http://www.tellyads.com/show_movie.php?filename=TA1781

jacdean

That advert makes me want to punch Carol Vorderman in her smug little face :mad:

Thrugelmir

jacdean wrote: »

This would make sense but by doing so we would then not have a 25% deposit against the new mortgage and this then messes up the interest rate we've been given etc etc.

What rate is the loan from First Plus?

opinions4u

poppy10 wrote: »

You don't really have a 25% deposit then, do you? Normally you would subtract your debts from your assets to calculate your net position.

This, a million times over.

A mortgage as a first charge for a higher LTV incorporating the First Plus loan amount will almost certainly be cheaper than a mortgage for 75% and a second charge with an alternative lender.

Its not my fault they have gone out of business.

They haven't. They just don't do new loans. You could have chosen any lender who, at a later date, could have refused you new finance. They were never under any obligation to lend to you again when you moved house.