Secured Loans: cheapest lending of last resort

AMILLIONDOLLARS

If you took out PPI insurance with this loan, it would be a good idea to reclaim this money back! Click on the tab at the top of this page '£000 Reclaim' for the information to do this. also post this this query under Loans, someone will come to your aid a lot faster.

AMD

f1fan_2

THANKS A MILLION i'LL TRY AND WORK OUT HOW TO DO THAT:T

caerdydd_2

I have inherited a house worth around £250 000. I need to borrow £60 000 to pay off credit cards and building work. What secured loans are available to those who don't have an outstanding mortgage? Which companies/banks offer the best value?

All I seem to see are loan offers for those with a mortgage.

I have a steady job, but have been refused credit cards, probably as I've missed a few payments.

I'd be very grateful for advice

halifax71

f1fan wrote: »

Hi All I need some help and advice please. Following the advice given by Barclays my bank of many years, in April 2006 I took out a secured loan in the sum of £36000 over 12years for building works and paying off a credit card, at the time the loan APR was 8.4% variable, with £392.37 monthly payment.

I have continued to make the payments without default over the intervening period repaying something like £26000. Having just retired I asked for a settlement figure last week which I received today it is as follows:
total amount payable £32279.65
early settlement rebate £7411.71
Admin charge £150.00
settlement figure £25017.94

I have not received any statements since the loan was taken out and in my Mind I had expected the outstanding balance to be in the region of £15000.00.

I rang Barclays querying the figures to be informed that I should know that was how loans work! Very helpful.

I suppose my questions are: 1. do I have any redress against Barclays because it wasn't explained to me that all the early payments pay off interest and also was there was probably better options available at the time. 2. The small print refers to a link with the Finance House Base Rate which at the time of taking out the loan was 5% but is now 1%. So initially 04/2006 my APR was 3.4% above FHBR wheras now the loan APR is 9% so a difference of 8% over current 1% FHBR.

Are they allowed to do this/ Is it worth referring the matter to a Banking ombudsman or anyone else. Making the payments isn't really a problem I just object to banking robbery I recall !!!!!! Turpin was hanged for lesser crimes.

Thank you:)

The issue of repaying more interest in the early years isn't really an issue as that is how loans work, fixed or variable. You owe more Capital so you pay more interest.

That said the interest rate is an issue. Have a read of these threads

https://forums.moneysavingexpert.com/discussion/2728133

https://forums.moneysavingexpert.com/discussion/1270125

https://forums.moneysavingexpert.com/discussion/1810757

https://forums.moneysavingexpert.com/discussion/1325785

You may also like to see the website www.firstpluscomplaints.co.uk

This issue will end up in court. My lengthy discussions with the OFT have been frustrating. In short I have asked them:

"How have FirstPlus increased the total amount payable on my loan by £8,000 against the backdrop of their interest costs and operating costs massively reducing?

How have FirstPlus been able to more than double their profit on my loan, and every other customer’s loan, under the auspices of prudence and efficiency?

How can FirstPlus be allowed to apply every single base rate increase to my loan and then say their rates don’t follow base rates?"

Following the CCA reprimand I asked the OFT http://www.oft.gov.uk/shared_oft/consumer-credit/first-plus.pdf


"Ultimately all I want to know is if these “new policies and procedures” had been in place since 2008 could FirstPlus have done the following: -

Increase my APR by 0.5% in May 2008 to “reflect the increased underlying costs associated with borrowing and prevailing market conditions”, during a period where base rates were reducing?

Further increase my APR by 0.3% in September 2008 on the basis that “Our product, like a mortgage, is a variable rate product; therefore rates can fluctuate up and down. We ensure that rate changes are fair and manageable; therefore your interest rate is no higher than it was 12 months ago and our product is still one of the most competitive on the market”. There had been no change to base rates to justify this increase.

Increase my rate by 0.8% in September 2009 to “ensure that our business is sustainably and prudently managed” against the backdrop of an 80% reduction in base rates.

Fail to pass on ANY base rate (BoE, FHBR) reductions to my APR, despite 5 increases quoting Bank of England & Finance House Base Rate as the reason.

In addition unless you can provide an assurance to the contrary it has to be assumed that there is ambiguity in the contract wording."

The OFT say "I appreciate that it will be frustrating to you but the OFT is unable to provide the answers to the questions you are asking, as we are unable to disclose specified information which has come to us in the course of the exercise of our functions."

Basically the OFT know the answers will harm FirstPlus' commercial interests.

As I said above, this one will end up in court.

Peter01

Secured loan is the best option to go with in need of finance.You have shared a good information.Thanks for such post.

minxtress

Hi
I have a loan with Black Horse at the moment and only have two years left to pay, never missed a payment on that or anything else.
My credit report says I have no late or missed payments on anything.
The only thing adverse on my credit report is a ccj which is settled but remains on there until it is removed which i think is 6 years?
I am looking for another loan, and approached black horse to pay off my existing loan and get another but they no longer do loans.
Does anyone have any idea who is best to approach first? I know Lloyds are part of Black Horse but on thier website they say no ccj's.
I dont want to apply for loads as this will adversely affect my file too.
I dont mind secured or unsecured as long as it is a reputable company.
I have a mortgage for 43750 and my house is worth 160000, mortgage with nationwide, but again i think with ccj lying on file they probably wouldnt touch me.
Any help greatly appreciated.
I work full time and have no problem meeting the payments of £240 a month on my current loan.

Tixy

minxtress

The CCJ is likely to make it difficult for you to obtain mainstream funding. What is the date of the CCJ? how much was it for?

How much are you hoping to borrow?

minxtress

Tixy wrote: »

minxtress

The CCJ is likely to make it difficult for you to obtain mainstream funding. What is the date of the CCJ? how much was it for?

How much are you hoping to borrow?

The ccj was for £1600 and has been gone for a year, it was for water rates off 10 yrs ago that my ex partner didnt pay, thats irrelevant tho....i just twitter on lol. I want to borrow £11000 which will include paying off the other loan i have as i dont want to be making two payments a month.
Thanks for replying

minxtress

Black horse are only doing motor finance, could i pretend i wanted a car or will they make it payable to the car dealership i wonder!!

minxtress

anyone any ideas?