Secured Loans: cheapest lending of last resort

Faanaraj

marshallka wrote: »

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.

Hi Marshallka,

Yes, that's true.

But its not true with all the bankers or secured loans providers. Its true with only few of them.

---

secured loans

samleec1

Have you looked at personalhomeloansuk.com This Company introduces people who want to lend with those who want to borrow and at very attractive rates with no charges for early payment etc.

Thanks

Regards

john554

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.

I'm guessing you took the loan out over a 300 month term? As with any capital repayment loan the majority of the capital is paid of towards the end of the term. With regard to the penalties, the good news is that as of April this year all secured loans in the uk are governed under the Consumer Credit Act, meaning the maximum any secured loan provider can charge for early repayment is 1 months interest. If you are tied into your mortgage and require some cash fast, secured loans are defiantely now the best way to release equity in your home. I'm not sure if anyone's posted something similar, but RBS have just brought out a very competitive range of loans (http://www.home-loan-broker.co.uk/good-news-for-home-owners-seeking-loans.html )
If you own your property outright it's sometimes best to look at equity release. There are options with these loans where you don't have to pay a monthly fee, but the capital is taken from the equity in your property.

John

angelas234

Hi, I am planning on paying off my car which I have on HP, as of march 07. However, when I called to do so, I was informed that I have paid all the interest first, and so will still have to pay the car value. In effect, I haven't paid any of my car off yet, only interest. Can they do this? If not, how do I get around it to just pay the car value that is outstanding? Thanks

butterfingers40

I've just tried to pay a laptop off that I bought from pc world and discovered I was being charged £25 for the privilage of interest free credit !! This is the first I ever been charged this. When I went to the store to complain I was given a refund at the end but it took a fight .The girl that served me was very careful to explain the credt agreement , but omitted the £25 charge, this was stated in small print three pages in!!. According to the assissant a lot of the stores are doing this now including comet who chagre £4o. So much for interest free. BEWARE

Rich_Richmond

Well in my opinion, you can’t determine what is cheap and what is not without analysing the requirements for a loan. It all depends on the loan amount and the duration for which you want a loan.
In my opinion, if you need to borrow under £1,000 you should look to use a payday loan. If you are borrowing anything from £1,000 - £25,000, you should look at an unsecured loan and anything over £25,000 you are best taking out a secured loan. You should seek financial advice before making your decision.

wilf55

hi everyone

my sis in law has a secured loan on her house of £25,000

property worth around £200,000 mortgage of £112,000

1 ccj eviction order about to be served etc

if she wasnt paying the sec loan she would be ok but can she get the secured loan attached so that if she sells the house they take the money from there

she is single on benefits a full time carer and mum of 3 primary age girls

shes been sobbing her heart out and desperate

any advice


should she try to remortgage for the whole lot but this will acrue a whole load of fees early repayment penalties etc

present sub mortgage lender wont increase mortgage

thanks everyone

wilf55

apologies for another post but need email notification and dont know who else to do it:D

war1234

hell everyone , 6 years ago my grilfriend Fought for custody of her niece, her real mum was a drug addict. Despite it being a no brainer case (i.e. the child wasn’t in safe hands) it still cost her £40000 in legal fees to get the custody. At the time all she could do was get a secured loan out on her house, for £40000 over a term of 15 years.
For the last 6 years she has paid £400 per month, but missed four payments. She managed to pay extra some months to make up for the payments that she missed. She phoned for a update the other day and they said that she now has to carry on paying for a further 21 years because she missed four payments, even though she has now caught up. She asked how much it would be if she paid the outstanding amount now, and they it will cost her a further £20,000 pounds. Surely they cannot do this?? Is there a better way out, maybe a loophole or something?? Any help would be very much appreciative, Thanks in advance

di3004

war1234 wrote: »

hell everyone , 6 years ago my grilfriend Fought for custody of her niece, her real mum was a drug addict. Despite it being a no brainer case (i.e. the child wasn’t in safe hands) it still cost her £40000 in legal fees to get the custody. At the time all she could do was get a secured loan out on her house, for £40000 over a term of 15 years.
For the last 6 years she has paid £400 per month, but missed four payments. She managed to pay extra some months to make up for the payments that she missed. She phoned for a update the other day and they said that she now has to carry on paying for a further 21 years because she missed four payments, even though she has now caught up. She asked how much it would be if she paid the outstanding amount now, and they it will cost her a further £20,000 pounds. Surely they cannot do this?? Is there a better way out, maybe a loophole or something?? Any help would be very much appreciative, Thanks in advance

Hi there
Sorry to hear your going through a time of it and hope all works out okay in the end.

However, I am not experienced in this field here and it maybe worth checking on another forum here, if you click on loans then start your own thread where you will receive some individual help.;)

While I am posting though hun I would not contact them by phone and request in writing for the calculations of this, the breakdown then to see how this is sort of thing, obviously post by recorded delivery for your proof and tell them you would appreciate a response to your letter within 12-14 days, if your not happy with the response then complain to them, give them 8 weeks in which the Financial services would expect you to do, and if they have not resolved this then go to the Financial Service ombudsman.

Hopefully someone will come along to give some help here with experience of dealing with these issues.

Also if you don't mind me asking, it may also be worthwhile checking to make sure your O/H have not been mis sold Payment Protection Insurance, if this is the case another letter of complaint and reclaim can be sent in order to get this back, this of course then will bring down the payments, will leave that one for you to decide here.

Good luck and please let us know the outcome of this, cheers, all the very best with it all.;)

Di