Picture loan / Webb resolutions

diddygez

Hi any help , husband and I took out a "consolidation" secured loan with picture 7 yrs ago for 55k currently paying £489 per month & outstanding balance is still 50k in total we will pay back £146k .at the time we were desperate and used an IFA who I believe took advantage of our situation and mid sold us this loan , we are both in f/t work and have a mortgage , is there anyone who can give any advice as to where we can go with this ... Never missed a payment but do have a ccj connected to a northern rock together loan . Many thanks

Brock_and_Roll

How long was the term of the loan from Picture?

diddygez

25 years 18 remaining

Tixy

Does the picture loan agreeement correctly show the total amount due under the agreement? So you knew it would be £146k? an APR of just under 10% roughly?

Does the loan allow overpayments and are you in a position to overpay each month?

Without it being a daft question - what do you think the IFA should have done rather than suggest this particular loan?

Apples2

diddygez wrote: »

at the time we were desperate and used an IFA who I believe took advantage of our situation and mid sold us this loan ,

Where would you be now if you hadn't taken it? Homeless?

To borrow that sum of money your options would have been very limited.

People do this every day, reduce the huge monthly sums for a lower monthly payments but a longer repayment period....repaying a whole lot more overall

diddygez

Ill check the original agreement , it's a fair question re what do I think he should have suggested , I suppose I'm older & wiser now and he knew the position we were in I feel he should have suggested a DMP which we did some years later , he also advised us on our mortgage and I since found out we didn't need to pay the 5k redemption he obviously just wanted us to change product so had got a bigger fee, I know we are to blame but I'm astounded companies can get away with this extortionate interest amount

iolanthe07

I'm astounded companies can get away with this extortionate interest amount .

If, as Tixy says, the interest is just under 10% APR then the rate isn't really that extortionate. When I first bought a house ordinary re-payment mortgages were running at 13%.

The problem is in the length of the loan. You are borrowing
the money over a very long term, and that is what makes the total amount of interest you pay so much. As you near the end of the loan you will find that the amount owing falls dramatically, as nearly all the payments will go towards principal, rather than interest as they do now.

took advantage of our situation and miss sold us this loan

I don't think you will have much success in claiming that the loan was miss sold, tbh - but good luck.

_Andy_

"mis-sold" in what way?

Please can I have a loan?
Yes, here's the details including interest rates, total repayable etc.
Thanks

*years later* ooooh I don't like the rate now, it was mis-sold!

_Andy_

"I'm astounded companies can get away with this extortionate interest amoun"

Yet you signed the credit agreement on those terms

poppasmurf_bewdley

The loan is NOT extortionate. It's the length of time you have borrowed the massive sum of £55k over that is costing you a fortune, not the interest rate.

When you signed on the dotted line, you committed yourself to effectively paying triple for everything you were consolidating - which is why consolidation loans rarely work. For example, if you paid £10k for a new Mini and then consolidated that loan, then the new Mini costs you £30k! Looked at like that, consolidation loans don't make sense.

Your financial advisor could not suggest you go on a DMP instead of taking a loan - for that advice you needed to speak to a Debt Counsellors not a Financial Advisor. You wouldn't ask a car salesman to give advice on kitchens would you?

We do see many people on this Forum who take out loans and then regret doing so when the terms they have signed up for begin to sink in with them. They then try and make excuses to justify why they signed when in reality they were only too happy to sign on the dotted line at the time. What I've never seen is someone who has succeeded in convincing the courts they were mis-sold a normal (non PPI) loan.

Clive_Woody

Has anyone ever cried 'miss-sold' before funds are released to them rather than afterwards?