Blemain Loan !!!Crooks

blemainfinance

Happy Christmas, I’m new to the Forum, Just wanted to share my experience with Blemain and hope someone can suggest some options, I will briefly explain my situation.

I took out a loan in 2010 for £29500, With the fees the opening balance was £33815.00. After paying 22 monthly payments totalling £8300.00, I enquired to them enquiring why I have not received any loan statements and was advised its not something they normally send out but has to be requested.

I then requested my redemption figure and to my surprise my loan has somehow gone up even though I am on a repayment loan.

Anyway the figures quoted by them


Balance outstanding £34,241.80

Redemption Admin fee £195.00

Early repayment £2705.20 8%

Total £37142.00

Now the early redemption figure I knew is quite high and at the time I needed the cash so did not query this.

But what gets me is I don’t understand why my loan has not reduced, They have sent me a statement of my payments and something called Acturial Interest which changes every month.

Any advise will be greatly appreciated.

iolanthe07

But what gets me is I don’t understand why my loan has not reduced,

It does seem odd - why don't you ask them for an explanation? They would probably know better than people on this site.

poppasmurf_bewdley

Many people who take out a mortgage for the first time often wonder the same. It's because at the beginning of every loan you are paying massive amounts of interest and and very little or nothing off the actual debt. As time goes on, you will begin to pay less interest and more capital.

I assume you are not on an 'interest only' arrangement?

marathon_man_3

poppasmurf_bewdley wrote: »

Many people who take out a mortgage for the first time often wonder the same. It's because at the beginning of every loan you are paying massive amounts of interest and and very little or nothing off the actual debt. As time goes on, you will begin to pay less interest and more capital.

Even on a standard repayment mortgage, there is a small amount of capital paid back even on the very first monthly payment. The amount of capital increases, as a percentage of each payment made, as the loan progresses.
I am presuming that no loan repayments have been missed since the loan was taken out. If this is the case, the loan outstanding should definitely be smaller, albeit by maybe not very much, since it started.

poppasmurf_bewdley

marathon_man wrote: »

Even on a standard repayment mortgage, there is a small amount of capital paid back even on the very first monthly payment. The amount of capital increases, as a percentage of each payment made, as the loan progresses.
I am presuming that no loan repayments have been missed since the loan was taken out. If this is the case, the loan outstanding should definitely be smaller, albeit by maybe not very much, since it started.

From what the OP says, he has some £5k of fees on top of the original loan amount. If his interest payment isn't covering the loan interest AND interest on the fees, then that may account for the increase of the total amount. Leaving the fees to the end of the loan may be just another way the company has of making even more money from the punters. His total increase on his balance is in the region of £500.

stephane_2

Are the figures you are giving includes the interest? I don't think it is....so for me I would not be surprised if those figures are correct, considering you have over £3000 in fees in actual fact you've only repaid just over 5k over the last 22 months...

marathon_man_3

poppasmurf_bewdley wrote: »

From what the OP says, he has some £5k of fees on top of the original loan amount. If his interest payment isn't covering the loan interest AND interest on the fees, then that may account for the increase of the total amount. Leaving the fees to the end of the loan may be just another way the company has of making even more money from the punters. His total increase on his balance is in the region of £500.

That would be totally scandalous if the charges aren't added to the original loan when calculating the monthly repayments to be made. If that is the case, the FSA would be interested to know about that practice.

CrazyAngel_3

Are you currently / have you ever been in arrears? Blemain Finance add massive charges for being in arrears which borrowers will find almost impossible to pay off as charges are added every month untiol the arrears are cleared in full even if an arrangement has been made.

Also, if you dont supply a copy of your buildings insurance showing Blemain as an interested party they will add you onto their block policy of approx £600 to £900 per year. Could this also have been added to your policy?

Also, have they added PPI?