Secured Loans: cheapest lending of last resort

marshallka

Faanaraj wrote: »

Hey,

Thanks for providing this great information and it is nice to hear that the secured loans are cheap...

You do have to remember though that most secured loans are at variable rates and a lot of providers put up their interest rate quite a bit during the loan period. Just because they may seem cheap at first they do go up and its then that your HOME is at risk if you are unable to pay.

lazymoezy

Hi,

Really new to this. You say they can put the rate up, can they legally do this even though you signed at one rate and then they go ahead and change it?

Also, do all companies do it? Can you get a FIXED rate?

I wanted to get a £2-3k loan, can be payable within 2-3 years. I searched on moneysupermarket and the amount of interest over say 3 year is around £300 for a £3k loan.

That is totally not a problem for me, but I first thought of great old MSE and thought I should come on here and ask for some advice.

Im not a homeowner, live in a private rented house, loans can be repaid without a problem.

What would I need to know? Do?

Loan would be either in mums or dads name as I think my credit history might not be as good as theirs even though my bank account is red hot with money going in and out literally everyday.

Any advice? sorry if this is the wrong section!

MoE

Michel_Bessette

Can someone tell me what an interest rate of 10% per month equals as an annual interest rate?

How to calculate?

Many Thanks,

Saludos de Honduras,
Michel.

finsmum_2

Hi there to everyone.This is a long one I'm afraid but here goes.18 months ago we borrowed £74500 from first plus,obviously secured against our home.We were desperate and they were the only ones to lend us money to clear our mounting debts(not amounted irresponsibly I might add).We have paid on time,every month,by direct debit to the tune of £10k at present.Our situation has changed dramatically since then,to the point that our own bank are now willing to lend us what we need to pay off first plus and bring the debt under the umbrella of our mortgage.Our intentions are to overpay our mortgage significantly every month and thus clear our mortgage quicker.I wrote to first plus for a settlement figure and what we owe now is £74,196(inclusive of a £150 admin charge).On our experian report this debt has a balance of £72k so when I queried FP they said we were breaking the agreement and that approx £2k were penalties yet in the T&C it says we have the right to pay the amount off outright and we would be subject to any charges they deemed reasonable which gives them carte blanche to charge whatever they like.I am so upset that after handing over £10k in 18mnths we have reduced the capital by only £306.I have rung which legal,trading standards and it would seem that we are out on a limb,on our own and there is not a damn thing we can do about it.Legally they are squeaky clean but I think morally they are wrong.I have had numerous loans in the past,all paid off early and with rebates for doing just that.We just wanted to pay them back so how can it be that when you want give them their money back they charge you for the priveldge.Just wish there was something we could do.Thanks for letting me rant.

srhjbl

Hi everyone, im after a bit of advice.....
I currently owe £21,000 on loans and credit cards which have just built up over the years, i own my own home which i currently have up for sale( but with the current market have had no interest ) the house has been valued and i have approx £50,000 equity. I dont want to withdraw my house from the market but do desperately need to pay off debts before they spiral.
I have no CCJS but my credit rating is only fair i currently earn £32,000.....what would be the best way to address problems without having to withdraw house from market ? many thanks

marshallka

finsmum wrote: »

Hi there to everyone.This is a long one I'm afraid but here goes.18 months ago we borrowed £74500 from first plus,obviously secured against our home.We were desperate and they were the only ones to lend us money to clear our mounting debts(not amounted irresponsibly I might add).We have paid on time,every month,by direct debit to the tune of £10k at present.Our situation has changed dramatically since then,to the point that our own bank are now willing to lend us what we need to pay off first plus and bring the debt under the umbrella of our mortgage.Our intentions are to overpay our mortgage significantly every month and thus clear our mortgage quicker.I wrote to first plus for a settlement figure and what we owe now is £74,196(inclusive of a £150 admin charge).On our experian report this debt has a balance of £72k so when I queried FP they said we were breaking the agreement and that approx £2k were penalties yet in the T&C it says we have the right to pay the amount off outright and we would be subject to any charges they deemed reasonable which gives them carte blanche to charge whatever they like.I am so upset that after handing over £10k in 18mnths we have reduced the capital by only £306.I have rung which legal,trading standards and it would seem that we are out on a limb,on our own and there is not a damn thing we can do about it.Legally they are squeaky clean but I think morally they are wrong.I have had numerous loans in the past,all paid off early and with rebates for doing just that.We just wanted to pay them back so how can it be that when you want give them their money back they charge you for the priveldge.Just wish there was something we could do.Thanks for letting me rant.

Can i ask finsmum, was there perhaps PPI attached to this loan. This would be possible and if it was then its mostly front loaded in that most of your repayments at the beginning are used to pay the insurance and hardly any actually comes off the loan itself.

Also rule 78 could have been used in your settlement. But, as your agreement is unregulated (ie over 25K) then the OFT asked that all lenders stop using this method
http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft192v2.pdf
Take a look at number 57 here..

If it has been used then make a complaint and you can challenge its use.

mebumu

Hi there

not sure if this question has been covered before, but does a secured loan need to be signed by both owners if the property is in joint names and does all the correspondence regarding the secured loan need to be addressed to both owners. The reason I ask is that I have a horrible feeling my ex-wife, who has not lived in the marital home for more than 10 years has possibly attempted to get (or worse, actually obtained!!) a secured loan against the property.

Olivers_Army

Has anyone had any experience of Nemo? We've been offered a deal with them via Central Trust. We'd already got a loan with Barclays and were looking to consolidate but Barclays have apparently stopped lending now....They pointed us in the direction of Central Trust, who have recommended Nemo...

Anyone got any thoughts on them?

Thanks!

cot1198

We had a loan with them that we re-payed early last year.
They mis sold us PPI that cost £9035 lumped on top, that only lasted for five years on a 20 year loan
and when we asked for a redemption figure it was £2000 more than we had borrowed even though we had made payments for 14 months

Olivers_Army

We're not falling for that PPI thing - we got stung in a loan from Paragon a few years ago - unsecured - when we tried to take action we found that they weren't even regulated by the FSA!!!!!

That's one hard lesson that we learned - never again!