Secured Loans: cheapest lending of last resort

sammy115

I think rather than getting another loan, you need to look at how you ended up in this kind of debt, do a budget etc.

Why don't you try posting on the debt free wannabee board. They are really good on there. I think you will struggle to get a loan on the property because of lack of equity and the fact that it is in joint names. I don't even think you could remortgage due to your salary.

CTT_2

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rubix_76

Scrooge_McDuck wrote:

Most people (after 20 months) would expect to pay back less than the origional loan (not #9,000 more!).

We took out a scured loan of £30k for several reasons (Needed new car, wanted to consolidate various loans/debts, and we had a baby on the way) so needed out outgoings to drop.

Hindsight is a great thing, but even now it was the ONLY way that we could reduce our payments. max unsecured loan is 25k, and we had only been in our house for 1 year, so not enough equity to re-mortage.

In a few years time we will have gained enough equity and I intend remortaging, so the interest rate will come down.

I looked into the fees they charge for early repayment, and they do seem high, but we will still save in the long run, so it is better.

flossypothecary

Talking about secured loans has anyone heard of Picture it Loans or do they know where i can find any reviews

samotam

Hi there
Could anyone tell me what happens if you sell a house which has a secured loan on it. Do the loan company immediately take the remainder of the loan or is it up to the seller to continue with the repayments. Any help would be most appreciated..

regularsaver1

all debt secured on that property should be repaid when house is sold - if there isn't enough for some reason then the company may agree to change it to an unsecured loan

jomac1290

Am currently in 50k of debt accumulated through car credit cards (2 on 0%) (1 @ 15%) hp x3 overdraft and secured loan which needs clearing as has a whopping payback (took it out in error really!) My first impression of secured loans is bad but i need to consolidate and have been offered to save £500 per mth only 1 month added interest and no additional penalties for early repayment. The company is First Plus which i know recieved bad press on this site so now i'm confused?????? Cant manage to stay as we are robbing Peter to pay Paul each month. Hoping to emigrate in 3 years time to NZ so wondered if this is a good option??????????? Cant get unsecured loan have tried!

baldelectrician

I nearly took a loan with first plus, then binned the idea after reading small print.

Pictutre It are MUPPETS, they made 2 typos on my credit search and I now have an association with someone with an almost identical name.


Ended going with Black Horse (part of Lloyds) and they fluffed up big time- they paid a cheque to my credit card and put the wrong refernce number on it.:mad:
To give them their dues they worked out how much interest I had overpaid and refunded it to me by cheque, they even paid a charge applied to my credit card account due to their error and a few quid throwm in for the hassle:)

The loan I got from them was a fixed term and a fixed intrest rate with 1 months early repayment charge. I was given a bank account number, sort code and reference number to make extra paymnets in to.

All in all i would give them the thumbs up ' If it's our fault we put our hands up and pay up' was the line I was given, as well as an apology.

natashae

Hi,

My partner and I are looking at getting a secured loan.
We've only been in our house for 6 months but need to raise extra cash in order pay back a family member who helped us with the deposit, and to do some improvements.
We brought the house for a steal at 74,000 (3 bed end terrace) and have done some minor cosmetic work already.
Anyway, our mortgage is with GMAC who I have been told you need to be with for at least 6 months before they will consider additional borrowing.
My partner has been out of work which has meant that the last mortgage payment was missed, so I'm thinking that GMAC are going to laugh in my face if I ask them about additional funds aren't they??
On the other hand, we've shopped aorund for secured loans (our credit rating aint great!!) and have recieved a quote from a company called Hadenglen.
For a £10,000 loan they want us to £270.00 per month for 10 years!!!!!!!
This is including protection which we can take off if we want to!
Really I'm wondering if anyone has had any dealings with Hadenglen, and/or whether anyone thinks it would be worth approaching GMAC for additional funds!
Essay complete!!

Money_Minor

I can see that there are a lot of people on this forum with quite a bit of debt, and can see no way out.

When you are adding money either onto your mortgage, or looking at another form of secured lending, your are potentially going to incurr charges to wrap up your existing credit (ie. two months penalties on loans etc), and also likely to extend the term that you borrow over in order to get your monthly outgoings down.

This will only increase the amount you pay in interest, although the interest rates for secured loans generally are lower than unsecured loans.

Saying this if you are in a hole, and feel you cant get out, then you have to take measures to try and solve this.

First measure is to look through your bank statements and see what your outgoings are. Then to work out what your actual debt is. For a lot of people this is the wake up call you need.

If your outgoings are more than your earnings, get things sorted out ASAP. Once you get into the spiral, it is a very vicious circle, and it happens very rapidly.

If your income and outgoings are within a close range, get things sorted ASAP, otherwise you will end up in the situation above.

Look at your bank statements again to see if there are any ways you can reduce the outgoings (ie non-essential items or items that you may have duplicated under similar insurance cover)

Also another option is to talk to the Citizens Advice Bureau (CAB). If you are lucky enough to live in an area where there is a CAB near they can be a wealth of knowlege for free. Although they cannot renegotiate debts with your lenders, they may be able to buy a little time.

Then shop around to see what is available to renegotiate the debt. All the regular online sites such as moneysupermarket.co.uk etc.

The other option is to talk to your main bank or lender. They may be able to negotiate due to existing custom. And actually talking to a real person helps. Although they may not be able to give you advice, take the info away, digest it, and don't commit yourself to anything until you have researched it completely.

When it comes to choosing lenders, it helps to go on recommendation from a few friends or family. You don't always know what lenders are like until you have been with them for a while.



I hope this helps a little to all you debt wannabies...And hope I have not repeated too much what anyone else has put down. I also do not intend the info to be advice, but information that I know being passed on to help someone else.